As of December 3, 2024, prevailing wages have been updated across Canada, impacting employers hiring under both the Labour Market Impact Assessment (LMIA) program and the International Mobility Program (IMP).
Please see an example of the increases in popular IT Occupations below with year over year comparison (see attachment for details).
LMIA Applications: New Obligations Effective January 1, 2025
For LMIA applications submitted on or after January 1, 2024, wages must align with updated prevailing rates.
Employers must implement wage adjustments, if required, for temporary foreign workers (TFWs) by January 1, 2025, regardless of the wage indicated in the LMIA approval.
International Mobility Program Applications
Wages for work permits under the IMP must also reflect prevailing rates for applications not yet filed and for those still in process but not yet approved. IRCC typically allows employers to adjust wages to meet new rates for pending cases.
Key Action Steps:
- Review updated wages: Access the new rates for your positions and locations on Job Bank.
- Adjust wages if necessary: Ensure all salaries meet or exceed the updated prevailing wage as required.
- Document your compliance: Maintain clear records of wage adjustments and ensure payroll reflects updated amounts.
Important Reminder for LMIAs:
Annual wage reviews are now required, with new prevailing wages taking effect January each year. Non-compliance can lead to penalties, including monetary fines, restrictions on hiring TFWs, and reputational risks.
Need help navigating these updates? Contact us for support in reviewing and adjusting wages to stay compliant with these new requirements.
The content of this bulletin is for informational purposes only, and is not intended to provide or be relied on as legal advice.