LMIA Requirements: Low-Wage vs. High-Wage | What Employers Need to Know

By Monica Diaz, RCIC and Senior Paralegal

When hiring foreign workers through Canada’s Temporary Foreign Worker Program (TFWP), determining whether to apply under the low‑wage or high‑wage Labour Market Impact Assessment (LMIA) stream is a critical first step.

For LMIA purposes, Employment and Social Development Canada (ESDC) uses the provincial or territorial median hourly wage as the scale to differentiate between low‑wage and high‑wage positions. Roles offering wages below the median are assessed under the low‑wage stream, while positions offering wages at or above the median fall under the high‑wage stream, each carrying different compliance requirements and employer responsibilities. Employers can consult the applicable wage threshold by province or territory HERE.

For employers, understanding the distinctions between low-wage and high-wage streams is essential to successfully navigate the LMIA application process. The chart below outlines key differences associated with each LMIA stream.

Requirement	Low-Wage LMIA	High-Wage LMIA
Wage Threshold	Below provincial or territorial median wage	At or above provincial or territorial median wage
Transition Plan	Not required	Mandatory – employers must commit to activities to recruit, retain and train Canadians and permanent residents, reducing reliance on temporary foreign workers
Cap on number of Temporary Foreign Workers	The number of temporary foreign workers is subject to a cap at the work location. (generally 10–20%, depending on sector and region)	Not applicable
Housing Requirement	Employer must ensure affordable housing is available or assist the worker in securing it	Not applicable
Transportation Costs	Employer must pay round-trip transportation to arrive at work location in Canada and return to their country at end of authorized work period.	Not applicable
Recruitment Requirements	Mandatory · National recruitment for at least four weeks ·  Advertising on Job Bank ·  Additional recruitment efforts targeting underrepresented groups	Mandatory · National recruitment for at least four weeks ·  Advertising on Job Bank
Work Permit Duration	Up to 1 year	Up to 3 years

Employers should note that LMIA applications under the low‑wage stream are not processed in census metropolitan areas with an unemployment rate of 6% or higher, although certain exemptions may apply. A list of Unemployment rates by census metropolitan area can be found HERE.

In addition, employers must be mindful that all costs associated with the LMIA process, including recruitment fees, legal fees, LMIA application fees, and related expenses must be paid entirely by the employer and may not be recovered from the foreign worker under any circumstances. Failure to comply with this requirement can result in serious compliance consequences.

Given the complexity of the Temporary Foreign Worker Program, seeking expert legal advice can help employers navigate the process efficiently and remain compliant.

Contact us to learn more about applying for an LMIA to hire a foreign worker.