ESDC Increases Wage Requirements for High-Wage Stream of TFWP

In a recent update to Canada’s Temporary Foreign Worker Program (TFWP), Employment and Social Development Canada (ESDC) has raised the wage requirements for the high-wage stream. Starting November 8, 2024, candidates applying under this stream must earn at least 20% more than the median wage for their position in their respective work area.

This change will affect up to 34,000 workers across the country, leading to wage increases ranging from $5 to $8 CAD per hour, depending on the job’s location. Minister of Employment, Workforce, Development, and Official Languages, Randy Boissonnault, emphasized that this move aims to support wage growth for Canadian workers.

Additionally, as of October 28, 2024, employers will no longer be allowed to use attestations from professional accountants or lawyers to confirm the legitimacy of their businesses in the TFWP. This step is part of broader efforts to strengthen the program and reduce misuse, including enhanced information-sharing agreements with provincial and territorial partners.

Previously, candidates were required to earn either the median wage for their occupation in the area or a wage within the range of current employees doing the same job at the same company. Under the new rules, applicants must now meet the higher of the two wage criteria.

Employers must also ensure that only guaranteed wages are counted for eligibility, excluding overtime, tips, bonuses, or other forms of compensation.

The government is focusing on these changes to encourage Canadian businesses to prioritize hiring local workers, with expectations that more jobs will fall under the stricter low-wage stream, which includes additional support for workers’ housing and transportation needs.

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