- ESDC publishes provincial and territorial median hourly wages by occupation, updated periodically.
- Who it covers Employers offering wages at or above the provincial median for the relevant occupation.
- Who it covers Employers offering wages below the provincial median for the relevant occupation.
When an Ontario employer applies for a Labour Market Impact Assessment (LMIA) under the Temporary Foreign Worker Program (TFWP), one of the first decisions is which stream applies: high-wage or low-wage. The stream is determined by whether the wage being offered is above or below the provincial or territorial median hourly wage published by Employment and Social Development Canada (ESDC). That single threshold triggers very different obligations — and very different risks.
Understanding the differences before you submit can help you plan your workforce, avoid the low-wage cap, and build the right application.
How the wage threshold is determined
ESDC publishes provincial and territorial median hourly wages by occupation, updated periodically. Ontario has its own median wage figures. Because these figures change over time, always verify the current Ontario median wage for your specific NOC (National Occupational Classification) code on Canada.ca before submitting an LMIA application.
If the wage you are offering equals or exceeds the applicable median, your application falls under the high-wage stream. If it falls below, it falls under the low-wage stream — with the additional requirements that come with it.
The high-wage stream
Who it covers
Employers offering wages at or above the provincial median for the relevant occupation. This stream includes many professional, technical, and skilled-trades positions.
Transition plan requirement
The defining feature of the high-wage stream is the transition plan. Before ESDC will issue a positive LMIA under this stream, the employer must submit a written plan outlining concrete steps they will take during the work permit period to reduce or eliminate reliance on temporary foreign workers for that role. The idea is that the TFWP is a short-term fix, not a permanent substitute for Canadian workers.
A transition plan typically describes:
- Activities to recruit or train Canadians (apprenticeship programs, partnerships with colleges, job fairs)
- Steps to retain current Canadian employees
- Any investments the employer plans to make in skills training
ESDC will assess whether the plan is genuine and achievable — vague platitudes will not satisfy the requirement. Employers who apply for a subsequent LMIA for the same position will be assessed on whether they followed through on the previous plan.
Other features
- No cap on the proportion of high-wage temporary foreign workers at a work site (unlike the low-wage stream)
- No requirement to provide housing
- No requirement to pay for return transportation in most cases (verify sector-specific rules)
The low-wage stream
Who it covers
Employers offering wages below the provincial median for the relevant occupation. This stream often includes positions in hospitality, food service, retail, manufacturing, and some agricultural processing roles.
The cap on low-wage positions
The most significant constraint is the cap on the proportion of low-wage temporary foreign workers a single employer can have at a work site. As of writing, ESDC limits the share of a workforce at any location that may be filled by low-wage temporary foreign workers — verify the current cap percentage on Canada.ca, as it has been adjusted over time and varies by sector and whether the employer has been in the program before.
New employers to the TFWP (or those with no prior low-wage LMIA approvals at that location) face a lower initial cap. Employers in certain higher-need sectors or regions may qualify for a higher cap. Exceeding the cap is a refusal ground; plan your workforce numbers carefully before applying.
Employer-paid obligations in the low-wage stream
Employers hiring under the low-wage stream must take on obligations that do not apply to high-wage positions:
Return transportation: The employer must pay for or arrange return transportation to the worker's home country at the end of the work period (or if the employer terminates the worker early).
Housing: The employer must either provide adequate housing or ensure that suitable housing is available to the worker and provide the worker with the details before they arrive. Some employers provide on-site accommodations; others provide a housing allowance or list of available rentals.
Workplace safety coverage: Employers must enroll the worker in provincial workplace safety insurance (WSIB in Ontario) before the worker begins employment.
Recruitment of underrepresented groups: Employers in the low-wage stream are expected to demonstrate that they considered hiring from underrepresented groups in Canada (Indigenous peoples, youth, newcomers, people with disabilities) as part of their recruitment effort.
No transition plan required
Unlike the high-wage stream, the low-wage stream does not require a formal transition plan document. However, ESDC still expects to see that the employer made genuine attempts to recruit Canadians before seeking a foreign worker.
Side-by-side comparison
| Feature | High-Wage Stream | Low-Wage Stream |
|---|---|---|
| Wage threshold | At or above provincial median | Below provincial median |
| Transition plan | Required | Not required |
| Cap on % of workforce | None | Yes — verify current % on Canada.ca |
| Return transportation | Generally not required | Employer must pay |
| Housing | Not required | Must provide or arrange |
| Recruit underrepresented groups | Expected | Explicitly required |
Frequently asked questions
What if we offer a wage just below the median? Can we bump it up to avoid low-wage requirements?
You can offer a higher wage — and if it is genuine and sustainable, the position would fall into the high-wage stream. However, ESDC will verify that the wage is real and consistent with what comparable workers at your business earn. Artificially inflating wages to escape the low-wage cap could be flagged during a compliance inspection.
If an employee gets a raise after the LMIA is approved, does the stream change?
The stream is determined at the time of application. Wage changes after the LMIA is issued do not retroactively change the stream or the obligations that applied to the original application. Consult an immigration lawyer before making material wage changes — they may affect work permit conditions.
Does the low-wage cap apply per location or per company?
As of writing, the cap generally applies at the work site (location) level, not across the entire company. A multi-location employer could have different cap situations at different sites. Verify current ESDC guidance on Canada.ca.
Can a position change streams on a renewal application?
Yes. If wages have changed, the renewal LMIA is assessed under whichever stream applies at the time of the new application.
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