Comparing high-wage and low-wage LMIA

About one-third of temporary foreign workers need an LMIA before applying. Of course, LMIA is a letter by Service Canada and stands for Labour Market Impact Assessment. They issue a positive or neutral LMIA letter when hiring a foreign national does not negatively affect Canada’s labour market. There are many LMIA types. However, the most popular ones are high-wage and low-wage programs. By comparing high-wage and low-wage LMIA options, you may decide how to move forward. Of course, you will also find out if it is worth it to go through the process.

The main difference between high-wage and low-wage LMIAs

The designation between high-wage and low-wage LMIAs is in the following table. The position is high-wage if you offer a salary at or above this table’s values. Otherwise, it is a low wage. Of course, you must refer to the provincial or territorial figures relevant to the job.

 Province/Territory Defining hourly wage before May 31, 2023 Defining hourly wage on or after May 31, 2023
 Alberta $28.85 $28.85
 British Columbia $26.44 $27.50
 Manitoba $23.00 $23.94
 New Brunswick $21.79 $23.00
 Newfoundland and Labrador  $24.29 $25.00
 Northwest Territories  $37.30 $38.00
 Nova Scotia $22.00 $22.97
 Nunavut $36.00 $35.90
 Ontario $26.06 $27.00
 Prince Edward Island $21.63 $22.50
 Quebec $25.00 $26.00
 Saskatchewan $25.96 $26.22
 Yukon $32.00 $35.00

You must always consider hourly wages. Therefore, avoid offering weekly, bi-weekly, monthly or annual wages to foreign nationals to prevent mistakes or confusion.

Some useful examples

Imagine you are offering $29 per hour to a foreign national. This position is high-wage in all provinces of Canada. However, the job for Canadian territories is low-wage (i.e.  Northwest Territories, Nunavut and Yukon).

For example, let’s say you are hiring someone to work in Red Deer, Alberta. If you want to apply under the high-wage option, you must offer that person $27.28 or more per hour. Of course, a lower salary could qualify for the low-wage LMIA only.

Working in two provinces simultaneously is not typical for foreign nationals. However, if you have an employee who needs to work in Ontario and Manitoba, consider the highest wage as the minimum requirement. In other words, you must offer at least $24.04 per hour to qualify for a high-wage position.

Comparing the application process for high-wage and low-wage LMIAs

Generally speaking, the application process for a high-wage LMIA is more straightforward. Moreover, we expect higher approval rates for this group. The following tables show the main differences between the two programs. Consequently, you can review the tables to decide for yourself.

The basic criteria

The following table compares the basic expectations for both options.

The Criterion High-wage LMIA Low-wage LMIA
Salary The prevailing regional wage! However, they are equal to or higher than the “defining” provincial hourly wages. The prevailing regional wage! However, they are lower than the “defining” provincial hourly wages.
Processing fee $1000 (exceptions apply) Same as high-wage
Business legitimacy Submit at least two documents to show the business is active and capable of covering the foreign national’s salary. Of course, you must include convincing official documents. Same as high-wage
Cap on the number of employees Not applicable! However, you must meet the business legitimacy requirements. If you have hired a foreign national before June 20, 2014, your cap is 20%. Otherwise, the cap is 10% for temporary foreign workers. Of course, the rest must be high-wage workers. Regardless, some exemptions apply.
Transition plan You must provide a transition plan to show you will try to reduce your reliance on foreign nationals. Nonetheless, some exemptions apply. No need for a transition plan!

The recruitment efforts

In this table, you can see how recruitment efforts differ for high-wage and low-wage options. Of course, I have not discussed the details or exceptional situations.

The Criterion High-wage LMIA Low-wage LMIA
Recruitment efforts You must post the job on at least three sources for at least four weeks. However, one of the references must be Job Bank, and at least one of the ads must run until the officer finalizes their decision. It is the same as high-wage. However, see the next two rows.
Job Match service on Job Bank You must invite anyone with four stars or more to apply for the job. You must invite anyone with two stars or more to apply for the job.
Targetting underrepresented groups in the recruitment efforts Not mandatory! You must target at least two of the following groups in your recruitment efforts: (1) Indigenous persons; (2) Vulnerable youth; (3) Persons with disabilities; and (4) Newcomers. Of course, you could go beyond the minimum.

Other issues that differ between high-wage and low-wage LMIAs

The following table shows those requirements for low-wage LMIA that are not mandatory for the high-wage option. Of course, I highly recommend discussing the matters with a professional for more information.

The Criterion High-wage LMIA Low-wage LMIA
Transportation It does not apply to high-wage LMIA. The employer must pay for the round trip costs of the applicant. Of course, you cannot recover this cost from the foreign worker later.
Housing Not applicable! You must make sure affordable housing is available to foreign workers. However, you do not need to pay the rent.
Healthcare Not mandatory! The employer must purchase coverage for the employee. However, the obligation extends until the provincial programs apply to the foreign worker.
Employment contract You may sign a contract with the foreign worker. However, you do not need to present it to Service Canada. A contract is mandatory for low-wage positions. Moreover, you may use the sample contract by the government of Canada.

I just included the main issues. Of course, some obvious criteria include the following:

  • Not using the hiring for affecting the current or future labour disputes
  • Providing a safe work environment to foreign workers

NOTE: Read the following article for a comparison between the PR LMIA and high-wage/low-wage options:

Let us help!

If you have general questions about high-wage and low-wage LMIA, fill out the following form. Otherwise, please book a consultation session with me or fill out our assessment form for specific questions.

    Full Name (required)

    Email Address (required)

    Have you entered your email address correctly?

    WhatsApp number (optional)

    Subject

    Your Message

    Related Posts

    Special authorization and its alternatives for Canadian dual citizens

    Sep 23, 2023

    Are Canadian citizens admissible to Canada?

    Sep 17, 2023

    Foreign record suspensions and Canadian admissibility

    Sep 7, 2023

    OINP Foreign Worker Stream with an Employer Job Offer

    Sep 6, 2023

    If you wish to visit or move to Canada, please fill out our free assessment form. We will review it for free, but we will contact you only if we find an opportunity for you. Alternatively, you may book a consultation session. Consultation sessions are not free, but you will receive formal advice from a licenced practitioner.

    Al Parsai, MA, DTM, RCIC
    Regulated Canadian Immigration Consultant
    Ashton College Instructor – Immigration Consulting
    Author – 88 Tips on Immigration to Canada

    Fill our Free Canada Immigration Assessment Form in your language!

    Disclaimer:
    This article provides information of a general nature only. Considering the fluid nature of the immigration world, it may no longer be current. Of course, the item does not give legal advice. Therefore, do not rely on it as legal advice or immigration advice. Consequently, no one could hold us accountable for the content of these articles. Of course, if you have specific legal questions, you must consult a lawyer. Alternatively, if you are looking for immigration advice, book an appointment.

    The characters and places in the articles:
    All the characters and locations in the articles are fictional, unless otherwise clearly stated. Therefore, any resemblance in names, dates, and places is coincidental.

    Important Notes:
    For our official addresses, trust this website only. We currently do not have offices outside Canada. Therefore, anyone who claims to be our agent is committing fraud. Also, note that we do not issue any work permits or study permits or similar documents. The government of Canada has the sole authority to issue such material.

    Click to read the disclaimer.

    Al Parsai

    This article has been expertly crafted by Al Parsai, a distinguished Regulated Canadian Immigration Consultant (L3 RCIC-IRB – Unrestricted Practice) hailing from vibrant Toronto, Canada. Al's academic achievements include an esteemed role as an adjunct professor at prestigious Queen's University Law School and Ashton College, as well as a Master of Laws (LLM) degree from York University. A respected member of CICC and CAPIC organizations, Al's insights are further enriched by his experience as the dynamic CEO of Parsai Immigration Services. Guiding thousands of applicants from over 55 countries through the immigration process since 2011, Al's articles offer a wealth of invaluable knowledge for readers.