Is there a limit on how many lower-wage foreign workers I can hire with an LMIA?

Yes. The federal Temporary Foreign Worker Program imposes caps on the proportion of low-wage foreign workers an employer can have relative to their overall Canadian workforce at a specific worksite. These caps are set by Service Canada and are part of the Low-Wage Stream rules.

The purpose of the cap is to ensure the program supplements, rather than replaces, Canadian workers. The specific cap percentage varies by industry sector and has been adjusted periodically. Service Canada's published guidelines set out the current percentages — employers should verify these directly with Service Canada or through legal counsel because they change.

The cap applies at the worksite level, not just the employer level, so large employers with multiple locations must assess compliance at each site separately.

Employers who are near or at the cap must make a business case for an increase, which Service Canada may or may not grant. In some industries (such as accommodations and food services), federal policy has historically applied lower cap limits or stricter scrutiny.

Employers planning to rely heavily on the Low-Wage Stream should account for these limits in their workforce planning well before submitting LMIA applications.