Does an employer have to pay a specific wage when hiring a foreign worker with an LMIA?

Yes. One of the core requirements of the LMIA process is that the employer commits to paying the foreign worker at least the prevailing wage for the occupation and geographic region. Service Canada uses wage data published by Employment and Social Development Canada to determine the prevailing wage.

For high-wage stream workers, the wage must be at or above the median hourly wage for that occupation in the province or territory. For low-wage stream workers, the wage must meet provincial or territorial minimum wage but is assessed against different criteria.

The reason for this requirement is to ensure that employers are not using the foreign worker program to undercut wages for Canadian workers in the same field. Offering a wage substantially below the prevailing rate is a common reason for LMIA refusals.

Employers must continue to pay the foreign worker at the wage stated in the LMIA and the work permit. Underpaying the worker can result in LMIA revocation, the worker's permit becoming invalid, and employer bans from the program. Service Canada conducts employer compliance inspections.