Canada expands low-wage foreign worker access for multi-site employers

Canada TFWP low‑wage cap updated: per‑location counting allows 1–2 temporary foreign workers at small sites

Policy change announced August 18, 2026
Employment and Social Development Canada (ESDC) updated its guidance to let employers with multiple small work locations hire more temporary foreign workers under the low‑wage stream of the Temporary Foreign Worker Program (TFWP). Where a specific work location has fewer than 10 employees, ESDC will now use that location’s workforce to calculate allowable low‑wage permits. That change generally permits one low‑wage temporary foreign worker per small site, and up to two per site for employers in the in‑demand sectors of health care, construction and food production.

Why this matters
Previously, the TFWP limited low‑wage hires to 10% of an employer’s total workforce (20% for in‑demand sectors). An alternative per‑location calculation existed only for employers with fewer than 10 employees nationwide. The August 18 guidance expands that variation so individual sites with under 10 employees can be assessed separately when that produces more permits than the company‑wide percentage.

How ESDC counts a work location
– All full‑time and part‑time employees at the location are included.
– Part‑time employees (average under 30 hours/week) count as 0.5.
– Temporary foreign workers with an approved LMIA who have not yet started work are included.
– Vacant positions listed on the LMIA application are included.

Low‑wage vs high‑wage and example
A low‑wage position is any job paying less than 120% of the regional median wage (per the federal Job Bank). Jobs at or above 120% fall into the high‑wage stream and are not subject to the workforce cap. Example: Ontario’s threshold is $36.92 per hour at the time of writing.

Other limits that still apply
– Employers must secure a positive or neutral Labour Market Impact Assessment (LMIA) before a foreign worker can get or renew a TFWP work permit.
– Since September 2024, low‑wage LMIAs are barred in urban areas with unemployment above 6% (moratorium).
– Since March 13, 2026, provinces may increase the low‑wage cap to 15% for employers in rural areas.

Employer obligations when hiring low‑wage TFWs
– Pay the worker’s travel to and from Canada.
– Ensure access to suitable housing that costs less than 30% of the worker’s pre‑tax income.
– Provide private health insurance for workers not covered by provincial/territorial public health plans.

Who benefits and practical next steps
The update chiefly helps employers operating many small sites (retail outlets, small production units, small clinics, site‑based construction crews). Practical actions:
– Re‑calculate headcounts site‑by‑site for locations under 10 employees, including part‑timers (0.5), vacant positions and approved-but-not-yet-started TFWs.
– Maintain recruitment records and document compliance with employer obligations in LMIA applications.
– Confirm whether a workplace is in an urban area subject to the moratorium or in a rural area where a provincial 15% boost may apply.
– Monitor ESDC guidance and rely on an approved LMIA for any TFWP low‑wage hire or renewal.

Key numbers and dates to remember
– ESDC guidance updated: August 18, 2026.
– Low‑wage threshold: under 120% of the regional median wage (Job Bank).
– Example: Ontario threshold $36.92/hr (at time of writing).
– Standard caps: 10% (low‑wage), 20% (in‑demand sectors).
– Per‑location allowance: one low‑wage TFW per site under 10 employees; two per site in health care, construction, food production.
– Part‑time counting: <30 hours/week = 0.5. - Rural boost: provinces may raise cap to 15% (since March 13, 2026). - Moratorium: low‑wage LMIAs barred in urban areas with unemployment >6% (since September 2024).
– Government admissions plan (current year): 60,000 through the TFWP and 170,000 through the IMP.

This change reduces a structural barrier for small sites within larger employer networks but does not remove the LMIA requirement or other employer obligations.

For personalized support with your Canadian immigration pathway, contact GTR Immigration. Call us: +91-8810-686-447

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