ESDC hikes wage criteria for high-wage TFW Program. Employment and Social Development Canada (ESDC) has announced new adjustments to the Temporary Foreign Worker Program, specifically targeting the high-wage stream. Starting November 8, 2024, candidates for this stream will need to earn at least 20% more per hour than the median wage for their specific job and region.
Moreover, the federal government projects that this adjustment could affect up to 34,000 jobs across Canada. Depending on the industry, hourly wages for those in the high-wage stream are expected to increase by $5 to $8 CAD.
Randy Boissonnault, Minister of Employment, Workforce Development, and Official Languages, stated, “We are encouraging wage growth for Canadians by raising the wage threshold for high-wage stream roles.”
Additionally, from October 28, 2024, employers participating in the TFWP will no longer be able to use attestations from certified accountants or lawyers to verify the legitimacy of their business.
To further prevent misuse of the program, Minister Boissonnault also announced plans to expand the TFWP’s information-sharing agreements with employment registries and provincial and territorial partners.
Specific adjustments
Previously, to qualify for the high-wage stream of the Temporary Foreign Worker Program (TFWP), applicants had to meet one of the following criteria:
- Earn the median wage for their occupation in their region as outlined by the National Job Bank of Canada, or
- Receive compensation comparable to that of current employees in the same company who hold similar positions, possess comparable training and experience, and work at the same location.
Furthermore, employers were required to provide the higher of these two wage options to ensure eligibility.
As mentioned earlier, candidates must now either earn a salary within the eligible pay range at their current job or at least 20% above the local median wage, depending on which amount is greater.
Additional forms of compensation include:
- Overtime pay
- Tips
- Benefits
- Profit-sharing
- Bonuses
- Commissions
- Any other supplementary forms of remuneration
How can applicants ascertain the median salary for their role within their specific region?
To find the median salary for a specific occupation, follow these steps using the Job Bank:
- Navigate to the “Compare wages” section on the Job Bank website.
- In the “Job search” field, input the job title or the NOC code (2021 version) that best matches the duties and requirements of the position you’re investigating. Be sure to review job descriptions thoroughly to select the correct occupation title.
- The hourly median wage will be displayed in the middle column, sorted by community or area. If the median wage appears as “n/a,” check the wage information for the corresponding province or territory. If that is also unavailable, consult the national wage for the role.
- If the job necessitates additional skills and experience beyond what is specified in the NOC description, the employer should account for these extra qualifications in the offered wages.
Canada employs the NOC classification system to categorize occupations based on the TEER (Training, Education, Experience, and Responsibilities) needed for each role.
Why is Canada seeking to make adjustments to the TFWP?
This year, the Temporary Foreign Worker Program has seen several changes initiated by IRCC and Employment and Social Development Canada. These modifications aim to encourage Canadian companies to hire and retain more Canadian workers.
According to ESDC, the latest announcement will result in a larger number of jobs being subject to the stricter criteria of the TFWP’s low-wage stream. Also, under these new regulations, employers are required to provide greater support for housing and transportation, which is expected to motivate companies to hire more Canadians for those roles.
The changes implemented this year include:
- A six-month suspension on processing Labor Market Impact Assessments (LMIAs) for the low-wage stream of the TFWP, particularly in metropolitan areas with an unemployment rate of 6% or higher.
- A limit that restricts employers to hiring only 10% of their workforce through the TFWP.
- A reduction in the maximum employment duration for workers in the low-wage stream, decreasing it from two years to one year.
Furthermore, these changes come as Canada seeks to limit the number of temporary residents (those holding work or study permits) to 5% of the total population, in response to growing concerns regarding housing availability and affordability in the country.
- To support this initiative, the government has implemented several changes this year, including:
- A cap on study permits for new international students.
The establishment of field of study and language requirements for Post-Graduation Work Permits (PGWPs).
Modifications to the eligibility criteria for certain Spousal Open Work Permits (SOWPs).
The unprecedented introduction of temporary resident target levels within the annual Immigration Levels Plan.
