Big News for Foreign Workers in Canada: Wage Rules Changed on June 27!

Intermediate | July 2, 2025

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What’s Happening with Wages?

Why This Update Matters

Let’s talk about some important news from Canada about foreign worker wage rules. Starting very recently, on June 27th, 2025, Canada updated its rules about how much companies must pay temporary foreign workers. This is a pretty big deal for both businesses that hire from other countries and for the workers themselves. The main idea is to make sure the wages paid are fair and match the current economic situation in Canada.

What Exactly Changed?

So, what exactly changed? Well, the government increased the minimum hourly wages that employers need to offer to foreign workers. These wages are called “wage thresholds.” The new thresholds are different depending on which province or territory in Canada the job is located in. For example, the required wage in Ontario went up from \$34.07 to \$36.00 per hour. British Columbia also saw an increase, from \$34.62 to \$36.60.

High Wage vs. Low Wage

Understanding Job Categories

These wage thresholds are important because they decide which category a job falls into under the Temporary Foreign Worker Program (TFWP). If the wage offered is at or above the new threshold for that area, the job is considered a “high-wage” position. If the wage is below the threshold, it’s a “low-wage” position. Think of it like a cut-off point.

Why Canada Foreign Worker Wage Rules Matter

Why does the category matter? Because the rules for employers are different for high-wage and low-wage jobs. Generally, it’s easier for companies to hire for high-wage positions. The low-wage stream has more requirements and restrictions. For instance, employers hiring low-wage workers might have stricter obligations, like needing to provide housing.

Extra Rules for Low-Wage Jobs

Restrictions in High Unemployment Areas

The changes also include some extra rules, especially for low-wage jobs. In areas where unemployment is high (6% or more), there’s a pause on approving applications for low-wage foreign workers until at least July 10, 2025.

Hiring Limits for Employers

Also, there are now limits on how many low-wage foreign workers a company can hire compared to their total staff. For most businesses, only 10% of their workers can be in low-wage positions through this program. However, some important industries like construction, food manufacturing, hospitals, and nursing homes have a higher limit of 20%. This is intended to prevent companies from relying too heavily on low-wage foreign labor.

Overall, these updates are Canada’s way of trying to balance helping businesses find workers when needed with ensuring fair wages and conditions for everyone, while also encouraging companies to hire local workers when possible.

Vocabulary

Updated (verb): Made something more modern or current.
- Example: “Canada updated its wage rules for foreign workers.”
Thresholds (noun): A level or point at which something starts to happen or change.
- Example: “The government increased the wage thresholds.”
Impacts (verb): Has a strong effect on someone or something.
- Example: “This change impacts Labour Market Impact Assessment applications.”
Align (verb): To bring something into line with something else.
- Example: “The changes aim to align wages with market conditions.”
Streams (noun): Categories or groups within a program.
- Example: “The program has high-wage and low-wage streams.”
Eligibility (noun): The state of having the right to do or receive something.
- Example: “The new wages affect employer eligibility for hiring.”
Moratorium (noun): A temporary stop to an activity.
- Example: “There is a moratorium on certain low-wage applications.”
Restrictions (noun): Limits placed on something.
- Example: “The low-wage stream faces additional restrictions.”
Obligations (noun): Things that a person is required to do.
- Example: “Employers in the low-wage stream have stricter obligations.”
Compliant (adjective): Following rules or requirements.
- Example: “Businesses need to stay compliant with the new wage rules.”

Discussion Questions (About the Article)

What was the main change Canada made to the Temporary Foreign Worker Program on June 27, 2025?
How do the new wage thresholds affect how a job is categorized in the program?
Can you name two provinces mentioned and their new wage thresholds?
What is one example of a restriction placed on the low-wage stream?
According to the article, what is one goal behind increasing these wage thresholds?

Discussion Questions (About the Topic)

What do you think is the purpose of a temporary foreign worker program in any country?
How might increasing minimum wages affect both employers and workers?
Why do you think different regions within a country might have different wage thresholds?
What are some challenges faced by temporary foreign workers when they come to a new country?
How important is it for foreign workers’ wages to be similar to those of local workers? Why?

Related Idiom

“Level the playing field”

Meaning: To make a situation fairer for everyone involved.
Example: “By increasing the wage thresholds, Canada hopes to level the playing field between hiring foreign workers and local workers.”

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This article was inspired by: The Economic Times, June 28, 2025