Hiring with an LMIA

Most employers need a positive Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC) before they can hire a temporary foreign worker. A positive LMIA confirms that no Canadians or permanent residents are available to do the job and that there is a need for a temporary foreign worker. No LMIA is needed if the worker has an open work permit. If an LMIA exemption code applies, the employer hires through the International Mobility Program and must include the exemption code in the offer of employment; if no exemption applies, the employer needs an LMIA and the worker needs a work permit. After a positive decision, the employer gives each worker the decision letter and its Annex A (employment details) and tells them to apply for a work permit.

The employer compares the hourly wage offered on the LMIA application with the provincial or territorial hourly wage threshold, which is the median hourly wage plus 20% (Statistics Canada Labour Force Survey). At or above the threshold: apply under the stream for high-wage positions; below it: apply under the stream for low-wage positions. Thresholds for LMIAs received as of July 17, 2026 (CAD per hour): Alberta 37.50; British Columbia 38.40; Manitoba 31.33; New Brunswick 31.73; Newfoundland and Labrador 33.60; Northwest Territories 48.00; Nova Scotia 31.96; Nunavut 45.00; Ontario 36.92; Prince Edward Island 31.20; Quebec 36.00; Saskatchewan 34.62; Yukon 45.60. For LMIAs received June 27, 2025 to July 16, 2026 they were: Alberta 36.00; British Columbia 36.60; Manitoba 30.16; New Brunswick 30.00; Newfoundland and Labrador 32.40; Northwest Territories 48.00; Nova Scotia 30.00; Nunavut 42.00; Ontario 36.00; Prince Edward Island 30.00; Quebec 34.62; Saskatchewan 33.60; Yukon 44.40. Offering a higher wage is not enough on its own: wages should match those paid to Canadians in the same job and location, and adjusting the wage to fit a stream or avoid a requirement could lead to a negative LMIA.

The employer must ensure the employment offered to a temporary foreign worker is a full-time position, meaning a minimum of 30 hours of work per week.

The employer must pay the prevailing wage, defined as the highest of: (a) the median wage on Job Bank for the occupation and area (if shown as "n/a", the provincial or territorial wage, then the national wage), or (b) the wage within the range the employer pays its current employees in the same job and work location with the same skills and experience. Extra skills or experience beyond the NOC description should be reflected in the wage. Only guaranteed wages count (not overtime, tips, benefits, profit sharing, bonuses, commissions or other compensation). Unionized positions must offer the collective agreement wage rates. For jobs in Quebec, the MIFI wage table applies. An employer offering a wage below the prevailing wage does not meet the labour market factor for wages and receives a negative LMIA. Hiring must also not adversely affect any current or foreseeable labour dispute.

Regardless of the wage on the LMIA application, the employer must reassess and apply the prevailing wage at the beginning of the worker's employment and review it annually using updated Job Bank wages (where applicable). Job Bank wages are updated each fall and employers have until January 1 of the following year to do their review. The updated wage can never go below the wage in the positive LMIA, even if the prevailing wage decreases. Employers who do not update wages may face administrative monetary penalties and bans. A wage change that meets the prevailing wage does not need to be reported to Service Canada.

The employer must pay $1,000 for each position requested (Visa, MasterCard, American Express, or a certified cheque, money order or bank draft payable to the Receiver General for Canada; an online banking pilot is offered for applications of 6 positions or more). The fee is not refunded if the application is withdrawn, cancelled or negative (refunds only for fees collected in error). The fee cannot be paid by or recovered from the temporary foreign worker, and the employer and anyone recruiting for it must not charge or recover any recruitment fees from the worker, directly or indirectly; failing this results in a negative LMIA. Exemptions: families or individuals hiring a caregiver for medical needs (with a medical certificate) or for in-home childcare of a child under 13 with gross annual income of $150,000 or less, and on-farm primary agriculture positions under NOC 80020, 80021, 82030, 82031, 84120, 85100, 85101 and 85103.

Service Canada has no authority to process applications from employers who regularly offer services in the sex industry (striptease, erotic dance, escort services or erotic massage) or who are on IRCC's ineligibility list: employers found non-compliant in an employer compliance review, banned after an inspection, or in default of paying an administrative monetary penalty. Under ministerial instructions, Service Canada may also refuse to process an LMIA for any position if the employer had an application revoked in the past 2 years for providing false, misleading or inaccurate information.

In applicable provinces and territories, the employer must obtain and pay for private health insurance covering emergency medical care for any period the worker is not covered by the provincial or territorial health insurance system. Coverage must start on the worker's first day of work in Canada and its cost must not be recovered from the worker. Inspectors check that the policy was not charged back and covers at least basic emergency care for sudden illness or injury; employers must be able to show proof of payment and the policy terms for each worker.

A copy is not needed when the LMIA is submitted, but the employer must commit to giving each worker a completed and signed employment agreement on or before their first day of work. It must cover employment in the same occupation, with the same wages and working conditions as the offer of employment; be drafted in English or French, as the worker prefers; and be signed by both the employer and the worker. Employers may use their own agreement or ESDC's template, and must keep complete employment records showing compliance. Quebec has its own contract requirements (MIFI).

Service Canada assesses whether the business and job offer are genuine and legitimate on 4 factors: (A) the business provides a good or service in Canada; (B) the job offer is consistent with the reasonable employment needs of the business; (C) the employer can fulfil all terms of the offer, including wages and other financial obligations; and (D) the employer complies with federal, provincial and territorial employment and recruitment laws. Failing 1 or more factors means a negative LMIA. Employers whose most recent LMIA was positive and issued in the past 2 years need not submit documents for factors A and C; others submit a valid municipal business licence (or other required permit or licence) and the most recent CRA-assessed documents (for example T2 Schedules 100 and 125 for corporations, T2125, T3010 or T5013 Schedule 1, or T4 Summary or PD7A where no licence is required). A financial institution attestation may be used if documents are unavailable. LMIAs supporting permanent residency need proof the business has operated at least 1 year. Foreign-based employers without a CRA business number submit their contract or invoice for the work in Canada. Documents in other languages need a translation and translator's affidavit. Trucking applications must always include the current carrier profile, National Safety Code certificate and fleet insurance, whatever the employer's history with the program.

Employers who have not employed a temporary foreign worker in the 6 years before submitting an LMIA application are subject to a review: they must show they made reasonable efforts to provide a workplace free of abuse (proactive efforts to prevent abuse and reactive measures to stop it) and that they were not an affiliate of an employer who is ineligible for the program or in default of an administrative monetary penalty. An affiliate includes an employer controlled by another employer, 2 employers under common control, or employers not operated at arm's length.

New on September 18, 2026, on ESDC's program requirement pages for both high-wage and low-wage positions: the employer is the entity that hires the worker, sets their working conditions and directly pays them. Service Canada considers who must meet program requirements, who benefits from the work, who decides where, when and how it is done, who pays wages, who directs duties and can dismiss, whom the worker recognizes as employer, who signs the employment agreement, and who handles management, supervision and statutory deductions (income tax, CPP or QPP, EI). Staffing or employment agencies that recruit workers for other businesses are not employers and cannot be approved to hire for them. Employers cannot classify temporary foreign workers as independent contractors, or reclassify them or restructure the relationship after an approved LMIA to avoid payroll, compensation or program requirements. Consequences include administrative monetary penalties, bans and public naming. The same requirements apply to a new LMIA used to extend a current worker's permit.

Employers hiring temporary foreign workers in British Columbia, Manitoba, Saskatchewan or Nova Scotia must first apply for the province's employer registration certificate and include a copy of the certificate or proof of exemption with the LMIA application; without it the application is incomplete. The registration must stay valid until the LMIA decision (or longer if the province requires). In British Columbia a copy is not needed, but the business name must appear on the public registry of active employer registrations.

Positive decisions on LMIA applications received as of May 1, 2024 are valid for up to 6 months. Within that period the employer must notify the worker and send the positive LMIA letter, and the worker must apply for a work permit; employers with an unnamed LMIA must keep recruiting Canadians and permanent residents until they choose a worker and provide the name before the LMIA expires. The LMIA expiry date is the date by which the worker must have applied for a work permit; the job itself may start later. ESDC can issue a shorter validity (for example emergency or warranty work). The 6-month validity applies to all streams in all provinces and territories except the Seasonal Agricultural Worker Program. If these steps are missed, the employer must submit a new LMIA.

After a positive LMIA, the employer must stay within the terms of the letter, its annexes and the IRPA; ESDC does not re-approve or authorize changes and judges them only through inspections. Minor changes that need no report: small duty changes that keep the NOC, raises up to the highest of 2%, the prevailing wage or the previous year's CPI inflation rate (2.1% for 2026), and raises required by law. Minor changes to report to the Employer Contact Centre: administrative errors, contact details, employment breakdowns (layoff, leave, cancellation), and a new work location in the same economic region. Material changes that may need a new LMIA (or voluntary disclosure if already made): a new occupation or NOC (including promotions), a change of employer (including assigning the worker to an affiliate's site), any wage decrease or a raise above the limit, changes to benefits or stipulated hours, a change of stream, failing transition plan commitments, or new educational requirements.

In the stream for low-wage positions, the program allows employers to hire temporary foreign workers for a maximum of 1 year, and the employment duration must align with the employer's reasonable employment needs. Keeping the worker longer requires a new LMIA and a work permit extension.

Before applying, the employer must: (1) advertise on Job Bank (another website or method needs a written rationale), using Job Match (default or basic matching) and inviting every matched job seeker rated 2 stars or more within the first 30 days, and considering Direct Apply applicants; (2) show recruitment efforts that reach and encourage youth (ages 15-30) to apply, for example the Job Bank youth section, schools or colleges, youth employment programs or platforms popular with youth; and (3) use at least 2 additional methods consistent with the occupation, each targeting a different under-represented group (vulnerable youth, Indigenous peoples, newcomers to Canada, persons with disabilities, asylum claimants with valid work permits). A provincial or territorial counterpart to Job Bank does not meet the under-represented group requirement. The ad must have run in the 3 months before the application, for a minimum of 8 consecutive weeks within those 3 months, and at least 1 activity must continue until the LMIA decision; if the Job Bank posting stays active, Job Match and Direct Apply duties continue. Records must be kept for at least 6 years.

There is a 10% cap on the proportion of temporary foreign workers an employer can hire in low-wage positions at a specific work location; applications above the cap may not be processed. The cap is 20% for NAICS 23 (construction), NAICS 311 (food manufacturing), NAICS 622 (hospitals), NAICS 623 (nursing and residential care facilities) and specific in-home caregiver positions in a private household (NOC 31301, 32101, 44100, 44101). Updated August 18, 2026: employers (including private households) with fewer than 10 employees at a work location use a workforce size of 10, so they may employ at most 1 low-wage temporary foreign worker under the 10% cap or 2 under the 20% cap. The workforce count includes all full-time and part-time employees at the location (part-time, under 30 hours a week on average, counts as 0.5), including Canadians, permanent residents, LMIA workers, other work permit holders and employees on leave expected to return, plus the vacant positions requested and workers on approved LMIAs who have not started. No cap applies to on-farm primary agriculture positions (NOC 80020, 80021, 82030, 82031, 84120, 85100, 85101, 85103), caregiving positions in health care institutions (NAICS 62, NOC 31301, 32101, 33102), positions supporting permanent residency only (no work permit), short-duration positions of generally 120 calendar days or less that are truly temporary or highly mobile, and seasonal low-wage positions of no more than 270 calendar days (once per year per work location). Rural employers in participating provinces may have temporary measures (see the rural measures rule).

From April 1, 2026 to March 31, 2027, employers in rural areas (outside census metropolitan areas) of participating provinces and territories may be eligible for temporary measures for certain low-wage positions: (a) retain their current proportion of low-wage positions filled by temporary foreign workers at a worksite even if it exceeds the 10% or 20% cap, and/or (b) a 15% cap instead of 10%. Participation and implementation dates: British Columbia (retain only, May 4, 2026); Manitoba (both, April 14, 2026); New Brunswick (both, April 23, 2026); Newfoundland and Labrador (both, June 11, 2026); Northwest Territories (both, June 16, 2026); Nova Scotia (both, April 14, 2026); Quebec (retain only, April 1, 2026). Alberta, Nunavut and Ontario are not participating. Prince Edward Island, Saskatchewan and Yukon: to be determined. The measures apply only to new LMIAs submitted during the effective period in that province or territory, require all program requirements to be met (including efforts to hire Canadians first), make no change to sector variations or no-cap positions, and do not cover low-wage positions under the permanent resident dual intent stream.

LMIA applications submitted as of September 26, 2024 are not processed when the wage is below the provincial or territorial wage threshold and the work location is in a census metropolitan area (CMA) with an unemployment rate of 6% or higher at the time of submission. A census agglomeration or an area outside any CMA remains eligible. Exempt: occupations in primary agriculture; NAICS 23 construction; NAICS 311 food manufacturing; NAICS 622 hospitals; NAICS 623 nursing and residential care facilities; specific in-home caregiver positions in a private household (NOC 31301, 32101, 44100, 44101), although in Quebec CMAs only when the position is to care for a person with medical needs or for a child in the custody of a person who cannot care for them for medical reasons, with a physician's note on the person's state of health; positions supporting permanent residency only (no work permit); and short-duration positions of generally 120 calendar days or less that are truly temporary or highly mobile (written "Exemption request" uploaded with the application). Rates in effect for applications submitted October 9, 2026 to January 7, 2027 (6% or higher): St. John's (6.4), Halifax (6.1), Moncton (8.1), Fredericton (6.2), Montréal (7.2), Ottawa-Gatineau (7.9), Kingston (6.3), Belleville - Quinte West (6.4), Peterborough (6.3), Oshawa (9.8), Toronto (7.5), Hamilton (7.4), St. Catharines-Niagara (6.5), Kitchener-Cambridge-Waterloo (7.6), Brantford (6.3), Guelph (7.5), London (9.1), Windsor (7.9), Barrie (6.2), Greater Sudbury (6.2), Regina (6.7), Saskatoon (6.5), Lethbridge (6.0), Calgary (6.4), Red Deer (6.9), Edmonton (7.6), Kelowna (8.6), Abbotsford-Mission (7.6), Vancouver (7.0), Nanaimo (6.6). Below 6%: Saint John (5.5), Saguenay (3.7), Québec (4.3), Sherbrooke (4.2), Trois-Rivières (5.7), Drummondville (3.8), Thunder Bay (4.6), Winnipeg (5.9), Kamloops (3.6), Chilliwack (5.6), Victoria (5.8). The table is updated every 3 months; the next update is January 8, 2027. No processing fee is charged when an application is refused for processing.

For low-wage positions, the employer must pay round-trip transportation costs for the worker to arrive at the work location in Canada at the beginning of the work period and to return to their country of residence at the end. If the worker finds a new employer with a positive LMIA, the new employer is responsible for the transportation costs. The costs must not be recovered from the worker.

For low-wage positions, the employer must provide or ensure that suitable and affordable housing is available for the worker, using Canada Mortgage and Housing Corporation definitions: suitable housing does not need major repairs (for example defective plumbing or electrical wiring, or structural repairs to walls, floors or ceilings); affordable housing costs less than 30% of the worker's before-tax income, counting rent or mortgage and payments for electricity, fuel, water and other municipal services. Service Canada may ask for proof (for example newspaper ads) that affordable housing is available.

Employers submitting an LMIA application for a high-wage position may request an employment duration of up to 3 years. The duration must align with the employer's reasonable employment needs, and it may be issued for longer only in exceptional circumstances where the employer provides an adequate rationale. High-wage positions include the Global Talent Stream, the high-wage stream (including caregiver positions), the agricultural stream and applications to support permanent residency.

Before applying, the employer must conduct at least 3 different recruitment activities: (1) advertise on Job Bank (an alternative method needs a written rationale), using the Job Match service (default or basic matching) and inviting every matched job seeker rated 4 stars or more within the first 30 days, and considering Direct Apply applicants; and (2 and 3) at least 2 additional methods consistent with the occupation, one of them national in scope. Two online methods must each have unique value and reach different audiences. The ad must have run in the 3 months before the application, for a minimum of 4 consecutive weeks within those 3 months, and at least 1 of the 3 activities must continue until the LMIA decision. The ad must show the operating name, business address, title, duties, terms, language, wage (a range is allowed if its minimum meets the prevailing wage), benefits, location, contact information and skills requirements. Recruitment records must be kept for at least 6 years. Variations apply to certain positions and provinces.

A transition plan, valid for the duration of the worker's employment, is mandatory to hire temporary foreign workers in high-wage positions. It describes the activities the employer agrees to undertake to recruit, retain and train Canadians and permanent residents and to reduce reliance on the program. An employer that submitted a plan before for the same position and work location must report on the results of its earlier commitments. Dual intent LMIAs supporting permanent residence also need a transition plan. Exemptions include: in-home caregiver or health care provider positions (private households under NAICS 8141 for NOC 31301, 32101, 44100 and 44101; health care institutions under NAICS 62 for NOC 31301, 32101 and 33102); SAWP, agricultural stream and other primary agriculture positions; a first request for a specialized occupation under Quebec's facilitated process; time-limited positions of 1 day to a maximum of 2 years that will not be filled after the worker leaves (for example project-based consultants or engineers, some film and entertainment roles, emergency repairs and warranty work); positions with unique skills not readily available in Canada; and positions supporting a permanent residency application only (no work permit).

For jobs in Quebec with an employment period of more than 30 consecutive days, the LMIA application must be submitted at the same time to Service Canada and Quebec's Ministère de l'Immigration, de la Francisation et de l'Intégration (MIFI), in French and in the format Quebec requires; failing to do so may affect processing. Until December 31, 2026, LMIAs for low-wage positions (below the Quebec wage threshold) in the economic regions of Montréal (island of Montréal) or Laval are not processed and no fee is charged, except NAICS 111, 112, 1151, 1152, 23, 311, 3121, 6111, 62 and 6244 (from January 9, 2026) and in-home caregivers for medical needs; if the Montréal CMA unemployment rate is 6% or higher, the general CMA refusal rules and exemptions decide instead. Employers can submit unnamed LMIAs for Quebec positions to the MIFI. The facilitated process occupation list was updated by Quebec on February 24, 2026.

Category A is for innovative companies referred by one of the stream's designated referral partners (for example the Business Development Bank of Canada, Council of Canadian Innovators, Global Affairs Canada's Trade Commissioner Service, NRC-IRAP, and regional partners) to hire unique and specialized talent to scale up and grow. The partner validates that the company operates in Canada, focuses on innovation, can grow, seeks a unique and specialized position and has identified a qualified worker. A unique and specialized position is indicated by at least $38.46 per hour ($80,000 annual base salary), or the prevailing wage if higher (both the hourly rate and annual salary must be met), plus advanced industry knowledge and an advanced degree in an area of specialization and/or at least 5 years of specialized experience. The $38.46 floor applies to the first 2 Category A positions approved per calendar year; additional positions need at least $72.11 per hour ($150,000) and reconfirmation by the partner. Each worker needs a separate referral form; Category A applications without one are incomplete and not processed. If the occupation is on the global talent occupations list, the application is processed under Category B.

Category B is for employers hiring highly skilled workers in in-demand occupations on ESDC's global talent occupations list (updated December 2022); no referral is needed. Listed NOC 2021 codes at the prevailing wage: 20012, 21300, 21310, 21330, 21390, 21311, a subset of 21210 (mathematicians and statisticians, excluding actuaries), 21211, 21220, 21221, 21222, 21223, 21230, 21231, 21232, 21233 and 21234. Listed with wage floors (or the prevailing wage if higher): 22310 at $41.35 an hour ($86,000 a year); 22220 at $40.87 ($85,000); 22222 at $41.03 ($85,000); a subset of 51120 (visual effects and video game producers and directors, 3 years of industry experience) at $40.87 ($85,000); and a subset of 52120 (digital media designers, 3 years of listed skills) at $38.46 ($80,000). For occupations with wage floors, the hourly rate is the minimum (annual figures are illustrative). Quebec positions use the MIFI wage floors.

Employers hiring through the Global Talent Stream work with ESDC to develop a Labour Market Benefits Plan (LMBP). Category A employers commit to creating jobs for Canadians and permanent residents as the mandatory benefit; Category B employers commit to increasing skills and training investments. Both must also commit to at least 2 complementary benefits (at least 1 activity each) different from the mandatory one; employers using both categories commit to 1 job creation activity, 1 skills and training activity and at least 2 complementary benefits. ESDC reviews progress about 1 year after signing and then annually; not making reasonable efforts or not completing a review will likely lead to negative decisions on Global Talent Stream applications for 2 years. Employers stay accountable even if the worker becomes a permanent resident.

Employers can apply for an LMIA to support a skilled worker's permanent residence (only, or together with a work permit as a dual intent LMIA, which requires the fee). The job offer must fit the Federal Skilled Worker Program or Canadian Experience Class (TEER 0, 1, 2 or 3, full-time of at least 30 hours a week, at least 1 year, non-seasonal) or the Federal Skilled Trades Program (an eligible TEER 2 or 3 skilled trade, full-time, at least 1 year, up to 2 employers). Employers are not eligible to make such job offers if they are an embassy, high commission or consulate in Canada, on IRCC's list of ineligible employers, new and not in business for a minimum of 1 year, or hiring workers who intend to live in Quebec. High-wage LMIA durations of up to 3 years and low-wage durations of up to 1 year apply to the work permit part.

As of November 3, 2026, IRCC is changing how it assesses Express Entry job offers: an LMIA is not needed for a job offer to qualify, having an LMIA gives no extra Comprehensive Ranking System points or priority, job offers may be for an existing or new position with any employer, and officers assess whether the offer is genuine (the employer is active in the business, can fulfil the offer, the offer meets its needs, and it follows employment and recruitment laws). Job offers still matter for eligibility under the Federal Skilled Trades Program, the Federal Skilled Worker Program and some provincial nominee streams. Until IRCC's online system is updated, candidates with an offer but no LMIA enter set placeholder LMIA details in their profile.

As of November 3, 2026, an LMIA is not needed for an Express Entry job offer to qualify for program eligibility or CRS points, having an LMIA gives no extra CRS points or priority, job offers may be for an existing or new position with any employer, and officers assess whether the offer is genuine (the employer is active in the business, can fulfil the offer, the offer meets its needs, and it follows employment and recruitment laws). Job offers still matter for eligibility under the Federal Skilled Trades Program, the Federal Skilled Worker Program and some provincial nominee streams. Until IRCC’s online system is updated, candidates with an offer but no LMIA enter set placeholder LMIA details in their profile.

The worker must apply to extend or change their work permit to keep working past its expiry, to substantially change occupation, wages or conditions, or to work for a new employer. If an LMIA is needed, the employer must apply for a new LMIA as soon as possible (and a CAQ in Quebec if required) and give the worker a valid job offer and proof that the LMIA or CAQ was applied for. The worker should not apply for the extension while waiting for the LMIA; they can only apply without the LMIA if their current permit expires in less than 2 weeks, and IRCC will not decide until the employer gets the LMIA decision. Changes of conditions should be applied for at least 30 days before the permit expires. A worker who applies before expiry keeps their status and can keep working under the original conditions (same job, employer and location) until IRCC decides. ESDC accepts an LMIA application up to 6 months before the expected job start date.

Primary agriculture work is performed within a farm, nursery or greenhouse, involves activities such as operating agricultural machinery, raising animals for raw products, or planting, caring for and harvesting crops, and matches NOC 80020, 80021, 82030, 82031, 84120, 85100, 85101 or 85103. Employers can hire through the Seasonal Agricultural Worker Program (workers from Mexico or participating Caribbean countries; production on the national commodities list), the agricultural stream (workers from any country; production on the national commodities list), or the high-wage or low-wage stream when production is not on the national commodities list.

Employers must meet the requirements of the LMIA, the terms of the decision letter and its annexes, and the IRPR; keep all relevant records for 6 years from the first day of the employment period for which the work permit was issued; and tell ESDC right away of changes or errors. ESDC may inspect for suspected non-compliance, past non-compliance, random selection and other reasons, on-site or virtually, announced or not. Inspectors check conditions such as paying wages and providing working conditions substantially the same but not less favourable than the offer, employing the worker in the same job, making reasonable efforts to keep the workplace free of abuse, and meeting LMIA commitments. Consequences include warnings, penalties up to $100,000 per violation to a maximum of $1 million per year, bans (permanent for the most serious violations, covering the TFWP and the International Mobility Program), publication on IRCC's list, and suspension or revocation of LMIAs.