LMIA Low-Wage Cap Reverts back to 20% after October 30, 2023  

Canada’s Temporary Foreign Worker Program (TFWP) permits employers to hire foreign workers to temporarily occupy positions for which qualified Canadians cannot be found. The program has imposed cap limits on certain job titles since 2014.

Employers operating a business with a minimum of 10 employees across the company are subject to the specified cap. The cap percentage is calculated for each distinct worksite, taking into account the paid positions and cumulative hours worked at that particular location.

Cap on Low-Wage Positions 

Since April 30, 2022, employers have been operating under a 20% cap limit on the proportion of Temporary Foreign Workers (TFWs) businesses could hire for low-wage positions at specific work locations. This policy was established to prioritize job opportunities for Canadians and permanent residents and to limit program abuse.

For applications received between April 30, 2022, and October 30, 2023, however, employers in the following industries were eligible for a 30% cap limit on the proportion of TFWs they could hire for the following low-wage positions: 

• Construction (NAICS 23) 

• Food manufacturing (NAICS 311) 

• Wood product manufacturing (NAICS 321) 

• Furniture and related product manufacturing (NAICS 337) 

• Hospitals (NAICS 622) 

• Nursing and residential care facilities (NAICS 623) 

• Accommodation and food services (NAICS 72) 

The 30% Low-Wage Cap exemption that permitted employers from certain sectors to hire low-wage workers will expire after October 30, 2023. This means that employers who were previously eligible for the policy exemption will again be subject to a 20% cap limit for Labour Market Impact Assessment (LMIA) applications submitted after October 30, 2023.