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Working under LMIA in Canada: Changes for high-wage occupations

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  5. Working under LMIA in Canada: Changes for high-wage occupations

Starting from 8 November 2024, the rules for obtaining an LMIA (work invitation) for temporary workers in Canada will change if they fall into the category of high-wage employees. These workers will now be required to receive a salary 20% higher than the average salary for their position. It is expected that the 34,000 workers already in Canada will see their salaries rise by 5-8 CAD/hour.

The innovation was announced on 21 October 2024 by the Minister of Employment, Workforce, Development and Official Languages, Randy Boissonnault. The changes were made to increase wages for local Canadians. Also, to change the current situation when employers prefer to hire workers from abroad over local citizens and permanent residency (PR) holders.

To reduce the abuse of the system of hiring temporary workers from abroad, restrictions on the use of some services of accountants and lawyers will also be introduced as of 28 October 2024. Now, attestations from these professionals cannot be used to prove the legitimacy of doing business.

High-wage occupations include:

Presumably, the changes will not apply to work invitations already received. Instead, Canadian employers will be required to raise salaries when extending LMIA.

For example, if we take the average salary for a high-wage position in Alberta, which is currently 29.50 CAD/hour, then to obtain an LMIA under the new rules, an employer needs to offer an employee from abroad 35.40 CAD/hour.

It is worth noting that the wage level is based on the established guaranteed wage. This figure does not include bonuses, overtime payments, tips, etc.

Positions that do not meet the new wage levels will be reclassified as low-wage jobs. This part of the employment of foreigners in Canada has undergone changes before.

The main innovations in this area of employment include the introduction of a 1-year employment period only, setting the number of foreign workers at 10% of the total number of employees, and suspension of employment of foreigners in low-wage jobs within metropolitan areas where the unemployment rate is 6% or higher.

Changes to the requirements for obtaining LMIA in Canada are in line with the general direction of changes in Canadian immigration rules. In the coming years, the number of foreigners temporarily staying in the country should not exceed 5% of the total number of Canadian citizens and permanent residents.

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