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Canadian LMIA Updates: 20% Wage Increase for High-Wage Jobs

After addressing the issue of low-wage positions in the context of Labour Market Impact Assessment (LMIA) applications, the Canadian federal government is now modifying the regulations for high-wage positions.

Indeed, effective November 8, 2024, for an LMIA to be processed under the high-wage stream, the minimum hourly wage must match the median hourly wage of the province where the work is being performed, with an additional 20% added.  For example, the reference hourly wage for Ontario is $28.85 per hour. It will now be $34.62 per hour. For Quebec, the threshold will increase from $27.47 per hour to $32.96 per hour.

At the same time, the offered wage must still match the reference wage for the National Occupational Classification (NOC).

Therefore, any LMIA application with an offered hourly wage below these thresholds will automatically be processed under the low-wage stream and its new requirements (such as specific recruitment efforts, prohibition of processing in certain regions, 10% foreign work force limit, LMIA restricted duration).

Another change effective as of October 28: letters from accountants or lawyers will no longer be accepted to establish the legitimacy of a business.

The government now favors “information-sharing agreements in place with provincial and territorial partners,” so consider the data and information exchanges between tax administrations and others.