What Is a Low-Wage LMIA?
A Low-Wage LMIA (Labour Market Impact Assessment) is a decision from Employment and Social Development Canada (ESDC) that lets you hire a foreign worker for a job that pays below the low-wage threshold for your province or territory. A positive LMIA shows that you need the worker and that no Canadian or permanent resident was available. Your worker then uses it to apply to IRCC for a work permit.
Employers use the low-wage stream to fill hard-to-staff roles in sectors such as food processing, construction, hospitality, care and manufacturing. The rules tightened in 2024 and again in 2026, so the checks below matter more than ever.
Low-Wage LMIA at a glance
Key takeaway
Check two things before you spend anything on recruitment: whether your work location is in a refusal-to-process area, and whether your cap leaves room for another low-wage worker. Either one can stop an application before ESDC looks at the merits.
Is Your Work Location Eligible for a Low-Wage LMIA?
ESDC will not process low-wage LMIA applications for jobs in a census metropolitan area (CMA) with an unemployment rate of 6% or higher. This applies to new hires and to renewals. ESDC updates the list every quarter using Statistics Canada data.
Under the update in effect from October 9, 2026 to January 7, 2027, 30 CMAs are affected, including Toronto, Montréal, Vancouver, Calgary, Edmonton, Ottawa-Gatineau, Hamilton, Kitchener-Cambridge-Waterloo, London, Windsor, Halifax and Saskatoon. Check ESDC’s low-wage stream page for the current list before you start.
These sectors are exempt from the pause:
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Primary agriculture
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Construction
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Food manufacturing
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Hospitals
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Nursing and residential care facilities
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In-home caregivers hired by private households
Nurses, childcare providers and personal support workers
Tip
If your location is paused, your realistic options are to raise the wage into the high-wage stream, look at an LMIA-exempt work permit, or base the role outside the affected CMA if your business really operates there.
Is Your Job Low-Wage or High-Wage?
The stream depends only on the hourly wage you offer compared with your province’s threshold. Since November 8, 2024, that threshold is 120% of the provincial or territorial median wage. Offer less and the job is low-wage. Offer the threshold or more and it is high-wage.
Separately, every LMIA job must pay at least the prevailing wage for its occupation (NOC 2021 code) and region on Job Bank. Being low-wage never lets you pay less than that.
Low-wage thresholds for LMIAs received on or after July 17, 2026. A job is low-wage if its hourly wage is below the figure for its province or territory. ESDC reviews these periodically, so confirm the current figure before you make an offer.
- Alberta: below $37.50 an hour
- British Columbia: below $38.40 an hour
- Manitoba: below $31.33 an hour
- Saskatchewan: below $34.62 an hour
- Ontario: below $36.92 an hour
- Quebec: below $36.00 an hour
- New Brunswick: below $31.73 an hour
- Newfoundland and Labrador: below $33.60 an hour
- Nova Scotia: below $31.96 an hour
- Prince Edward Island: below $31.20 an hour
- Northwest Territories: below $48.00 an hour
- Nunavut: below $45.00 an hour
- Yukon: below $45.60 an hour
Wage offered
Low-wage
Below 120% of provincial median
High-wage
At or above 120% of provincial median
Work permit length
Low-wage
Up to 1 year
High-wage
Longer, based on your need
Cap on low-wage staff
Low-wage
Yes, usually 10% per location
High-wage
No cap
Transition plan
Low-wage
Not required
High-wage
Required
Round-trip travel and affordable housing
Low-wage
Employer must provide
High-wage
Not required
Paused in high-unemployment CMAs
Low-wage
Yes
High-wage
No
What Are the Low-Wage LMIA Recruitment Requirements?
Recruitment is where most low-wage applications succeed or fail. Since April 1, 2026, ESDC requires a longer campaign and specific outreach to young job seekers.
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8 consecutive weeks of advertising
Completed within the 3 months before you apply. This doubled from 4 weeks.
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A Job Bank posting
Live for the whole campaign, with Job Match and Direct Apply turned on. If it stays up after you apply, it must stay compliant until ESDC decides.
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Two methods aimed at underrepresented groups
Each targeting a different group, such as vulnerable youth, newcomers, Indigenous peoples, persons with disabilities, or asylum claimants with valid work permits.
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Youth outreach
For example, youth job boards, schools, youth employment programs, or social media popular with younger job seekers.
That means at least four recruitment methods in total. Within the first 30 days of your Job Bank posting, you must also invite every Job Match candidate rated 2 stars or higher to apply. Our LMIA recruitment and advertising guide covers this in more detail.
Watch the timing
Keep dated screenshots, posting links, applicant logs and interview notes for every method, and record why each Canadian or permanent resident applicant was not hired. Keep these records for 6 years. Missing youth outreach and thin recruitment records are common reasons applications fail.
How Many Low-Wage Workers Can You Hire?
The low-wage stream limits the share of your workforce at each work location that can be low-wage temporary foreign workers. Your cap depends on your sector, your location and your size.
Standard cap
Who it applies to
Most employers in most sectors.
Good to know
Counted per work location, not company-wide.
In-demand sectors
Who it applies to
Construction, food manufacturing, hospitals, and nursing and residential care facilities.
Good to know
Confirm your industry code qualifies before you rely on it.
Rural employers
Who it applies to
Employers outside CMAs in participating provinces and territories, for LMIAs submitted April 1, 2026 to March 31, 2027.
Good to know
Employers already above the cap may keep their current share.
Small locations
Who it applies to
Work locations with fewer than 10 employees.
Good to know
Up to 2 workers in in-demand sectors, 1 in others. Since August 18, 2026, counted per location, not company-wide.
Tip
ESDC counts full-time and part-time staff (part-time counts as half), workers with approved LMIAs who have not started yet, and vacant positions in LMIA applications. Some positions, such as on-farm primary agriculture, are exempt from the cap.
Who Qualifies: Employer and Worker Requirements
ESDC checks that your business is real, the job offer is genuine, and you can meet every term of it. IRCC then checks that the worker qualifies for the job and can enter Canada.
- Your business operates in Canada and provides goods or services here.
- The job meets a real business need.
- You can pay the wage and meet every term of the offer.
- You are not on the list of ineligible employers or banned from the Temporary Foreign Worker Program.
- Pay round-trip transportation for the worker.
- Make sure affordable, suitable housing is available.
- Provide private health insurance until provincial coverage starts.
- Register the worker with your provincial workplace safety board.
- Has the education, experience and language skills the job needs.
- Is admissible to Canada, including medical and security checks where required.
- Gets a work permit before starting work.
There are no restrictions on the worker’s country of citizenship.
Employers in British Columbia, Manitoba, Nova Scotia and Saskatchewan need provincial employer registration before they apply for an LMIA. In Quebec, jobs longer than 30 days also need an application to the province’s immigration ministry (MIFI) at the same time. Start registration early so it is ready when you file.
How Do You Apply for a Low-Wage LMIA?
Here is the usual order. Once you add recruitment, ESDC processing and the work permit, plan for at least 4 to 6 months before your worker can start.
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Step 01
Confirm eligibility
Check that your location is not paused, your wage is below the threshold but at least the prevailing wage, and your cap has room.
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Step 02
Register with your province
Required in British Columbia, Manitoba, Nova Scotia and Saskatchewan.
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Step 03
Recruit for 8 weeks
Job Bank plus at least three other methods, including youth outreach, within the 3 months before you apply.
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Step 04
Prepare your application
The LMIA form, job offer, recruitment evidence and business documents.
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Step 05
Submit and pay the fee
Apply online and pay the $1,000 processing fee for each position.
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Step 06
Answer ESDC's questions
An officer may call to check details about the business, the job and your recruitment.
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Step 07
Worker applies for a work permit
With a positive LMIA, the worker applies to IRCC. Low-wage permits last up to 1 year.
How long does it take? ESDC processing times change often and differ by stream and region, so check ESDC’s published times when you file. The work permit then takes as long as IRCC needs for the worker’s country. Our LMIA application process guide walks through each stage.
Documents ESDC usually asks for:
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Proof your business is legitimate
Recent CRA documents, such as T2 Schedules 100 and 125, and a T4 Summary or PD7A. If you received a positive LMIA in the past 2 years, ESDC may not need these again.
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Proof of recruitment
Ad copies, dates, platforms used and your applicant tracking records.
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Job offer and provincial documents
A signed job offer and, where required, your provincial registration.
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For new businesses
Without a tax history, ESDC may accept an attestation letter from an accountant or lawyer, with incorporation documents and bank statements.
Why Do Low-Wage LMIA Applications Get Refused?
Most refusals trace back to a handful of avoidable errors. Here is what to watch for.
Filing in a paused CMA
Why it hurts
ESDC will not assess the application at all.
What works instead
Check the refusal-to-process list for your exact work location first.
Short or broken advertising
Why it hurts
Anything under 8 consecutive weeks, or a gap in the Job Bank posting, fails the minimum.
What works instead
Plan the full campaign, with dates, before the first ad goes live.
No youth outreach
Why it hurts
It has been a separate requirement since April 2026 and is easy to miss.
What works instead
Use at least one youth-focused method and keep proof of it.
Wage below the prevailing wage
Why it hurts
Being low-wage does not lower the Job Bank prevailing wage for the job.
What works instead
Check the wage for your NOC code and region before you post.
Going over the cap
Why it hurts
Miscounting staff can lead to a refusal or penalties later.
What works instead
Count each location the way ESDC does, including part-time staff and pending LMIAs.
What Are Your Obligations After the LMIA Is Approved?
Approval is not the finish line. ESDC and IRCC can inspect you, and you must meet the terms of the LMIA for as long as the worker is employed under it.
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Keep the job the same
Same wage, duties and working conditions as the LMIA and job offer, and comparable to what Canadian staff in the same role receive.
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Sign a contract by day one
Give the worker a signed employment contract on or before their first day of work.
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Never recover hiring costs from the worker
You cannot charge the worker, directly or indirectly, for recruitment, LMIA or similar fees.
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Provide a safe, abuse-free workplace
Follow federal, provincial and territorial employment and recruitment laws.
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Keep records for 6 years
Recruitment evidence, the application, messages with ESDC and the decision letter.
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Tell ESDC about changes
Report changes to the worker’s employment, and get advice before changing duties, location or ownership.
Key takeaway
Penalties range from warnings to fines of up to $100,000 per violation, to a maximum of $1 million a year, and bans from the program for serious cases. Many problems start with a small change, such as new duties or a new location, made without checking the LMIA first.
Frequently Asked Questions About Low-Wage LMIAs
Usually not on work permits. Since January 21, 2025, a spouse qualifies for an open work permit only if the worker is in a TEER 0 or 1 job, or certain TEER 2 or 3 jobs, with at least 16 months left on their permit. Most low-wage jobs do not meet this, and a 1-year low-wage permit is too short. Dependent children no longer get open work permits, although minor children can usually attend school in Canada.
Up to 1 year. To keep the worker longer, you need a new LMIA, which means a new recruitment campaign. An LMIA cannot be extended.
Yes, but their permit is tied to you. The new employer usually needs its own LMIA, and the worker needs a new work permit before starting the new job.
Raises are fine. You must pay at least the wage in the LMIA and give the worker the same raises as Canadian staff in the same role. A promotion into a different occupation needs a new LMIA and a new work permit.
You can hire them. If that fills your need, you no longer need the LMIA. If you still need the foreign worker too, your application must explain why, and ESDC will look at it closely.
The collective agreement applies to the foreign worker the same way it applies to everyone else in the role, including wages.
Sometimes, but it is harder. Many low-wage jobs are TEER 4 or 5, which do not count for Express Entry. Some provincial nominee streams and federal pilots accept these jobs. A lawyer can check what fits the worker’s profile.
Depending on the role, you may consider the high-wage stream, the Global Talent Stream for specialized tech roles, or an LMIA-exempt work permit. Each has different requirements and timelines.
Is a Low-Wage LMIA Right for Your Business?
The low-wage stream still works for many employers, but it now rewards preparation. Confirm your location, wage and cap first. Then run a full 8-week campaign that you can prove, step by step. For the bigger picture, see our LMIA guide for employers.
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