Canada Work Permit Wage Requirements Changing in 2024 to Combat Wage Suppression

Posted 10/30/2023

In a bid to address concerns about wage suppression in the labor market, Canada is set to implement new wage requirements for work permits starting on January 1, 2024. These changes are part of the revisions made to the Temporary Foreign Worker (TFW) Program Workforce Solutions Road Map by Randy Boissonnault, the Minister of Employment and Social Development Canada (ESDC).

What’s Changing?
The “Road Map” is being updated to provide a more accurate reflection of the current labor market conditions and the economic outlook for the future. One of the most significant changes is the requirement for employers to conduct an annual review of the wages they pay to temporary foreign workers. This review will entail adjusting wages to match the prevailing wage rates for the specific occupation and location in Canada.

Addressing Wage Suppression:
The main motivation behind these changes is to combat wage suppression. By ensuring that temporary foreign workers are paid in line with the prevailing rates, the government hopes to prevent the undercutting of wages and maintain fair compensation for both Canadian and foreign workers. This move is expected to protect the economic interests of all workers and promote a more balanced job market.

Implications for Employers:
Starting from January 1, 2024, employers who hire temporary foreign workers will need to be diligent in reviewing and adjusting wages. This requirement is designed to promote fairness and competitiveness in the labor market. Employers will need to be proactive in staying up-to-date with the prevailing wage rates for their industry and location to remain compliant with these new regulations.

The upcoming changes to Canada’s work permit wage requirements demonstrate the government’s commitment to addressing wage suppression concerns and promoting fair compensation for all workers. By requiring annual wage reviews and adjustments, these measures are aimed at creating a more equitable and competitive labor market in Canada.