Canada is making significant strides to attract skilled professionals from around the world. On November 8, 2024, the Canadian government implemented a bold wage increase for temporary foreign workers, raising wage thresholds by 20%. This move is designed to improve the labour market, address skill shortages in key industries, and make Canada a more attractive destination for immigrants, particularly skilled workers from countries like India.
In this blog post, we will break down what this wage hike means for foreign workers, employers, and how it impacts the immigration process for those looking to work in Canada.
Why is Canada Raising Temporary Worker Wages?
The Canadian government’s decision to raise wages for temporary foreign workers comes as part of a broader effort to ensure fairness and equality in the labour market. By increasing wage thresholds, Canada hopes to achieve the following:
- Address Skill Shortages: Key industries such as construction, healthcare, and technology are facing significant labour shortages. Raising wages will make these sectors more attractive to skilled foreign workers.
- Fair Compensation: The wage hike ensures that foreign workers are paid fairly for their contributions to the Canadian economy. This adjustment aligns with the Canadian government’s commitment to creating a more inclusive and equitable workforce.
The increase will apply to the Labour Market Impact Assessment (LMIA) program, which determines the wage thresholds for different job categories across Canada. By increasing these thresholds, Canada is signalling its intention to make the labour market more competitive and attract more skilled workers from around the globe.
New Wage Thresholds for Each Province
The wage increase will vary across Canada’s provinces and territories, with all regions receiving a significant boost. Below is an updated breakdown of the wage thresholds, effective November 2024:
| Province/Territory | Previous Wage Threshold | New Wage Threshold (Nov 2024) |
| Alberta | $29.50 | $35.40 |
| British Columbia | $28.85 | $34.62 |
| Manitoba | $25.00 | $30.00 |
| New Brunswick | $24.04 | $28.85 |
| Newfoundland and Labrador | $26.00 | $31.20 |
| Northwest Territories | $39.24 | $47.09 |
| Nova Scotia | $24.00 | $28.80 |
| Nunavut | $35.00 | $42.00 |
| Ontario | $28.39 | $34.07 |
| Prince Edward Island | $24.00 | $28.80 |
| Quebec | $27.47 | $32.96 |
| Saskatchewan | $27.00 | $32.40 |
| Yukon | $36.00 | $43.20 |
This increase in wages means foreign workers across Canada will have more earning potential, helping them to lead a better lifestyle and contribute to Canada’s economy in meaningful ways.
How Does This Benefit Foreign Workers?
The wage increase is a game-changer for foreign workers. Here’s how:
- Higher Earning Potential: The 20% increase means that foreign workers will have the chance to earn more, giving them a better financial position and improving their overall standard of living in Canada.
- Improved Living Standards: With higher wages, workers will be able to afford better housing, healthcare, and a better quality of life. This can help attract top-tier professionals to Canada who are looking for a good work-life balance.
- Pathway to Permanent Residency (PR): For many skilled workers, especially those from countries like India, temporary work in Canada can be a stepping stone to permanent residency. The increased wages can help meet the financial requirements necessary for PR applications.
This wage hike signals Canada’s commitment to welcoming skilled workers and providing them with the opportunity to thrive and grow within the Canadian economy.
Impact on Employers
While the wage increase brings good news for workers, it presents both challenges and opportunities for employers:
- Revised Budgets: Employers will need to update their payrolls to meet the new wage requirements. This could involve adjusting their hiring budgets, salary expectations, and making revisions to their overall compensation packages.
- Increased Competition for Talent: As more skilled foreign workers are drawn to Canada by the higher wages, Canadian employers will need to compete to hire the best talent. Industries like healthcare, construction, and trade will feel this competition the most, as these sectors already face significant labour shortages.
- Attracting Skilled Workers: Employers who offer competitive wages will be in a stronger position to attract top-tier talent. This could be especially advantageous for Canadian companies that are in desperate need of skilled workers to fill critical roles.
What’s Next for Immigrants Interested in Working in Canada?
The 20% wage hike opens up exciting opportunities for skilled workers from countries like India and beyond. If you’re considering moving to Canada for work, here’s what you need to know:
- Check Your Eligibility: Ensure that you meet the necessary qualifications for temporary work in Canada, including the required skills and experience.
- Apply for an LMIA: Employers in Canada will need to apply for a Labour Market Impact Assessment (LMIA) to hire foreign workers. All LMIA applications submitted after November 8, 2024, will be subject to the new wage thresholds.
- Prepare for Your Move to Canada: Once you secure your work permit, it’s time to plan your move. This includes considering accommodation, transportation, and other factors like healthcare and cultural integration.
A Bright Future for Immigrants in Canada
The 20% wage hike is a step toward a more inclusive and prosperous labour market in Canada. It benefits foreign workers by providing higher wages, a better quality of life, and enhanced opportunities for permanent residency. Employers, meanwhile, will have to adapt to new wage expectations but also benefit from attracting the talent needed to grow their businesses.
For skilled workers looking to make Canada their long-term home, now is the perfect time to explore the opportunities available. Take advantage of this wage increase and join Canada’s thriving workforce today!
