Low-Wage LMIA Canada

The low-wage stream of the Temporary Foreign Worker Program covers positions where the wage offered is below the provincial or territorial median hourly wage. It is the most heavily scrutinized and restricted LMIA stream — with a cap on the proportion of low-wage workers at any work location, a refusal-to-process rule for high-unemployment areas, a maximum employment duration of one year, and additional requirements around transportation and housing that do not apply to the high-wage stream.

Since September 2024, ESDC has significantly tightened the low-wage stream. The workforce cap was lowered from 20% to 10%, new refusal-to-process measures were introduced for census metropolitan areas with elevated unemployment, and oversight and inspection activity has increased. If you are considering a low-wage LMIA, understanding these restrictions before applying is not optional — failing to account for them can result in your application not being processed at all.

At Magellan Immigration, we assist Canadian employers in assessing low-wage LMIA eligibility, navigating the cap and refusal-to-process rules, and preparing complete, compliant applications.

Is the Position Low-Wage?

A position is classified as low-wage if the wage offered is below the provincial or territorial median hourly wage. The median wage is determined using Job Bank's Compare Wages tool with the applicable NOC 2021 code and work location. Only guaranteed wages count — overtime, tips, benefits, bonuses, commissions, and profit sharing are excluded from the calculation.

Before You Apply — Critical Checks

Two conditions can prevent your low-wage LMIA from being processed at all, regardless of how well your application is prepared:

1. Refusal to Process — High Unemployment Areas LMIA applications for low-wage positions in census metropolitan areas where the unemployment rate is 6% or higher will not be processed. This measure applies to all low-wage positions in affected CMAs and has been in effect since September 26, 2024. The unemployment rate table is updated quarterly — confirm the current rate for your work location before applying.

2. Cap on Low-Wage TFW Proportion Low-wage TFWs cannot exceed 10% of the total workforce at a specific work location. Applications that would push your TFW proportion above the cap may not be processed. Exceptions apply in the following sectors where the cap is 20%:

  • NAICS 23 — Construction

  • NAICS 311 — Food manufacturing

  • NAICS 622 — Hospitals

  • NAICS 623 — Nursing and residential care facilities

  • Specific in-home caregiver positions under NOC 31301, 32101, 44100, and 44101

Employers with fewer than 10 employees nationally are limited to hiring 1 TFW (10% cap industries) or 2 TFWs (20% cap industries).

Positions with no cap include on-farm primary agriculture positions in specified NOC codes, caregiving positions in healthcare institutions under NOC 31301, 32101, and 33102, positions supporting permanent residence only with no associated work permit, short-duration positions of 120 days or less that are truly temporary or highly mobile, and low-wage positions in seasonal industries not exceeding 270 calendar days.

Low-wage LMIA applications may request a maximum employment duration of one year.

Recruitment Requirements

Before submitting your application, you must conduct at least three distinct recruitment activities over a minimum of four consecutive weeks within the three months prior to application. At least one activity must remain ongoing until the LMIA decision date.

Required activities:

  • Job Bank — mandatory. You must use the Job Match service and invite all candidates rated 2 stars or more within the first 30 days to apply. You must consider all Direct Apply submissions

  • At least two additional methods — each must target a different underrepresented group: vulnerable youth, Indigenous peoples, newcomers to Canada, persons with disabilities, or asylum claimants with valid work permits. If both additional methods are online, they must reach genuinely different audiences

The job advertisement must include the company name and address, job title, duties, terms of employment, language of work, wage including any incremental raises, benefits, work location, contact information, and skills requirements. Recruitment records must be retained for a minimum of six years.

Prevailing Wage

The wage must meet or exceed the higher of the Job Bank median hourly wage for the occupation and location, or the wage being paid to current employees in the same job at the same location with similar skills and experience. Annual wage reviews are mandatory — the updated wage can never fall below the wage identified in the positive LMIA.

Additional Requirements — Low-Wage Only

 

The low-wage stream has three requirements that do not apply to the high-wage stream:

Transportation You must pay the round-trip transportation costs for the temporary foreign worker to arrive at their Canadian work location at the start of their work period and to return to their country of residence at the end. Transportation costs cannot be recovered from the worker. If the worker changes to a new employer with a positive LMIA, the new employer assumes responsibility for transportation costs.

Housing You must provide or ensure that suitable and affordable housing is available for the worker. Suitable housing requires no major repairs. Affordable housing costs less than 30% of the worker's before-tax income. ESDC may request proof that affordable housing is available in the work location.

No Transition Plan Required Unlike the high-wage stream, the low-wage stream does not require a transition plan.

Employer Obligations After a Positive LMIA

After receiving a positive LMIA you must provide the worker with the decision letter and Annex A, sign an employment agreement in English or French as preferred by the worker on or before their first day of work, obtain and pay for private health insurance covering emergency medical care during the period before provincial health coverage begins, ensure workplace safety insurance coverage from day one, and maintain complete employment records for six years. For agricultural positions, you must also notify workers of pesticide or chemical use and provide protective equipment and training at no cost to the worker.

ESDC prioritizes certain occupations across all provinces and territories, primarily in healthcare, agriculture, and food processing. Prioritization does not override any refusal-to-process conditions that apply to your work location.

Provincial Requirements

British Columbia, Manitoba, Saskatchewan, Nova Scotia An employer registration certificate from the province is required before submitting your LMIA application.

Quebec LMIA applications must be submitted simultaneously to Service Canada and MIFI for positions with an employment period of more than 30 consecutive days. Note that until December 31, 2026, certain low-wage LMIA applications in the economic regions of Montréal and Laval will not be processed.

What We Do

 

  • Confirm whether the position qualifies as low-wage based on current Job Bank median wages

  • Verify whether refusal-to-process rules apply to your work location based on current CMA unemployment data

  • Calculate your current TFW proportion to confirm you are within the applicable cap

  • Manage the recruitment process including Job Bank posting, Job Match, and underrepresented group targeting

  • Prepare the complete LMIA application including transportation and housing documentation

  • Coordinate simultaneous provincial submissions where required

  • Advise on employer compliance obligations after a positive LMIA decision

  • Coordinate the worker's work permit application following a positive LMIA