Canada Doubles Low-Wage LMIA Duration to Two Yearsਕੈਨੇਡਾ ਨੇ ਲੋ-ਵੇਜ ਐਲਐਮਆਈਏ ਦੀ ਮਿਆਦ ਦੋ ਸਾਲ ਕੀਤੀ

Canada has doubled the maximum length of low-wage jobs under the Temporary Foreign Worker Program (TFWP), from one year to up to two years. The change, announced by Employment and Social Development Canada (ESDC) on November 6, 2026, applies to Labour Market Impact Assessment (LMIA) applications filed on or after that date.

This is a different change from the one on October 28, when Ottawa removed the time limit on holding work permit applications while an LMIA decision was pending. Read about the October 28 change here. That change was about how long officers can wait for an LMIA decision. This one is about how long the job itself can last once the LMIA is approved.

What changed on November 6?

Under the low-wage stream of the TFWP, an employer who cannot find a Canadian worker can hire a temporary foreign worker after receiving a positive or neutral LMIA from ESDC. Until now, that LMIA could cover at most one year of employment. From November 6, LMIAs submitted under the low-wage stream can cover up to two years, and the work permit issued on the basis of that LMIA can match that length.

The longer duration gives employers and workers more stability. Employers in sectors that rely on the low-wage stream, such as food processing, hospitality and agriculture, no longer need to repeat the LMIA process every year for the same position, and workers get a longer period of authorised employment from a single application.

Who does it cover?

A job falls under the low-wage stream when it pays less than 120 percent of the hourly median wage in the province or territory where the job is located. In Ontario the threshold is $36.92 an hour and in British Columbia it is $38.40, according to CIC News. The new two-year maximum applies only to LMIA applications submitted on or after November 6. Workers who already hold a permit are not automatically extended: to stay longer, their employer must obtain a new LMIA.

What has not changed?

The moratorium on low-wage LMIAs in census metropolitan areas with unemployment of 6 percent or higher remains in place. ESDC will not process low-wage LMIA applications for non-exempt jobs in those cities, a list that currently covers 30 metropolitan areas including Toronto, Vancouver, Montreal, Calgary, Edmonton and Halifax. The list is updated quarterly, with the next update scheduled for January 8, 2027. Early childhood educators were added to the list of exempt occupations on November 6, joining priority sectors such as healthcare, construction and food processing.

What is proposed for March 2027?

In the same announcement, ESDC proposed further changes that would take effect on March 1, 2027, but only where provinces and territories opt in. They include letting employers hire temporary foreign workers for up to 15 percent of their workforce through the low-wage stream, up from the current 10 percent maximum, while priority sectors would keep their existing 20 percent limit. The minister will meet provincial and territorial counterparts in the coming weeks to discuss the proposals. None of these changes is in effect yet. They sit alongside the wider immigration targets announced in the 2027 levels plan, which sets a core target of 380,000 permanent residents a year.

What does this mean for workers already in Canada?

For workers whose permits are close to expiry, the existing rules still apply. If a permit expires in two weeks or less and the employer applied for the LMIA with enough lead time, IRCC allows concurrent processing, so the worker can apply for an extension while the LMIA is still being decided. Applying before the current permit expires gives the worker maintained status, letting them keep working under the old permit's conditions until a decision is made.

How long can a low-wage TFWP work permit last now?

Up to two years, for LMIA applications submitted on or after November 6, 2026. The previous maximum was one year.

Does the change extend my current work permit?

No. Existing permits are not automatically extended. Your employer must obtain a new LMIA for you to get a longer permit.

Can employers still hire low-wage workers in Toronto?

Not for non-exempt jobs while Toronto remains on the moratorium list for cities with unemployment of 6 percent or higher. Exempt occupations, now including early childhood educators, are not affected.