Comparing permanent resident LMIA with high-wage and low-wage options
Canadian employers usually need to apply for an LMIA when hiring foreign nationals. LMIA stands for Labour Market Impact Assessment. Moreover, a positive LMIA means hiring a foreign national has no negative impact on the Canadian job market. We could divide LMIAs into several groups. This article compares the permanent resident LMIA with high-wage and low-wage options. Of course, these three are probably the most popular LMIA types.
- Introducing high-wage and low-wage LMIAs
- What is a PR LMIA?
- Comparing the PR LMIA with high-wage
- Low-wage LMIA vs the permanent resident LMIA
- Temporary changes to the LMIA program
- Let us help!
What are high-wage or low-wage LMIAs?
These two LMIAs are for those who intend to work in Canada with a work permit. However, they do not qualify for better alternatives such as,
- working in Canada without a permit,
- working in Canada without an LMIA, or
- less complex options such as the Global Talent Stream.
Among the two options, the process for high-wage LMIA is more straightforward. I prefer not to go into the details. Nonetheless, you may read my other article on this subject:
What is a permanent resident LMIA (PR LMIA)?
Before comparing a permanent resident LMIA with high-wage and low-wage options, let’s define it. Sometimes, you receive a job offer from a Canadian employer. However, you may work in Canada only if you become a permanent resident. In this situation, you usually need to apply for a permanent resident LMIA. A job offer backed with a PR LMIA could boost your FSWC and Express Entry scores. Therefore, many PR applicants seek a PR LMIA to validate their job offers. Of course, you may consider reading my other article on job offers.
Permanent resident LMIA vs. high-wage LMIA
The process and requirements of a PR LMIA are the same as a high-wage LMIA for the most part. However, there are some differences. The following table only reflects the differences.
| Issue | PR LMIA for high-wage positions | Regular high-wage LMIA |
| Processing fee | $0 | $1000 (exceptions exist) |
| Using the LMIA for a work permit application | Not possible | Possible |
| Transition plan | No | Yes, it is a must |
| Using it for boosting the PR application score | Yes | Yes, however, you must have a PR-specific* job offer. |
*A PR-specific job offer means the employer is willing to hire you for at least one year after becoming a PR.
Permanent resident LMIA vs. low-wage LMIA
The process and requirements of a PR LMIA are the same as a low-wage LMIA for the most part. However, there are some differences. The following table only reflects the differences.
| Issue | PR LMIA for low-wage positions | Regular low-wage LMIA |
| Processing fee | $0 | $1000 (exceptions exist) |
| Using the LMIA for a work permit application | Not possible | Possible |
| Cap on the number of employees | No | If the employer has hired a foreign national before June 20, 2014, the cap is 20%. Otherwise, the cap is 10% for temporary foreign workers. |
| Using it for boosting the PR application score | Yes | Yes, however, you must have a PR-specific job offer. |
| Transportation, housing, healthcare, and contract? | Not applicable | Applicable |
*A PR-specific job offer means the employer is willing to hire you for at least one year after becoming a PR.
Significant temporary changes to the LMIA program
Starting from April 30, 2022, some temporary changes will affect the LMIA program, namely:
- Labour Market Impact Assessments (LMIAs) will be valid for 18 months, up from nine. LMIA is a document that an employer in Canada may need to get before hiring a foreign worker. Before the pandemic, LMIAs were only valid for six months.
- Further, the maximum duration of employment for High-Wage and Global Talent Stream workers will be extended from 2 years to 3. This extension will help workers qualify for more pathways to permanent residency. Of course, they will also be contributing to the Canadian workforce in the long term.
- Also, there will no longer be a limit to the number of low-wage positions that employers in seasonal industries (fish, seafood processing) can fill through the TFW Program. Moreover, the maximum duration of these positions will be increased from 180 days to 270 days per year.
- …
These changes are temporary and are because of the labour shortages in 2022. Moreover, you could read our news article about this subject:
Let us help!
If you have general questions about comparing permanent resident LMIA with high-wage and low-wage options, fill out the following form. Otherwise, please book a consultation session with me or fill out our assessment form.
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Al Parsai, MA, DTM, RCIC
Regulated Canadian Immigration Consultant
Ashton College Instructor – Immigration Consulting
Author – 88 Tips on Immigration to Canada
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