High-Wage vs. Low-Wage LMIA

The High-Wage and Low-Wage LMIA categories are important parts of Canada’s immigration process. An LMIA is a document provided by Employment and Social Development Canada (ESDC) to evaluate how hiring foreign workers may affect Canadian jobs. The pay of high-wage jobs is above the median rate of the region. On the other hand, the pay of low-wage jobs is below the average hourly wage of that region. The difference between high-wage and low-wage is important for employers as the rules change on the wage level. The LMIA process makes sure Canadian workers get their first chance at jobs and that foreign workers are paid fairly, keeping the job market fair and balanced.

High-Wage LMIA

An LMIA application for high-wage positions is submitted when the pay offered to an international worker is equal to or higher than the average hourly wage in the province or territory. This type of application is usually for jobs that pay well because they require higher skills and experience or are influenced by the local economy. Employers applying for a high-wage LMIA often need to include a plan showing how they will reduce the need for temporary international workers by hiring as well as training Canadian citizens or permanent residents.

Key Requirements for the Application of a High-Wage LMIA

Transition Plan Requirement

A transition plan is for a high-wage LMIA application that you should have. It outlines your strategy to hire and keep Canadian workers, helping to rely less on temporary foreign workers (TFWs). Those who have applied for the first time and those who are reapplying need to provide this plan, showing how well previous efforts worked. The focus is on improving how you hire, train, and keep Canadian citizens or permanent residents. Here’s a simple guide to creating a strong transition plan for your high-wage LMIA application:

• Identify the Role and Its Requirements: Clearly explain the job you are hiring for and list the qualifications, skills, and experience needed. This shows why you need a foreign worker for your company, and it also keeps the LMIA process clear and fair.
• Market Analysis and Recruitment Efforts: Do a detailed analysis of the job market to explain why you need a foreign worker. Keep records of all your efforts to hire Canadian workers, like job ads, to show that you have tried to hire people locally before looking for international candidates.
• Training and Development Programs: Create training programs to help Canadian employees improve their skills. This can include mentorship, hands-on training, and workshops to get them ready for higher positions in the company.
• Succession Planning: Make a plan for the future to fill high-paying jobs with Canadian workers. This means finding people in the company who could be the perfect choice for these roles and giving them the training and experience they need to take on more responsibility.
• Collaboration with Educational Institutions: Work with local colleges, universities, and training centers to create a reliable source from where you will get skilled workers. By teaming up with schools, we can make sure Canadian students and graduates are ready for high-paying jobs.
• Supporting Permanent Residency: Help temporary foreign workers move to permanent residency. Employers can assist by giving the right paperwork and support, helping create a stable, long-term workforce in Canada.

Low-Wage LMIA

A low-wage LMIA (Labour Market Impact Assessment) is needed when the hourly pay offered to a foreign worker is below the average wage in the province or territory. These LMIAs are often used in industries with many entry-level or less specialized jobs. Unlike high-wage LMIA applications, employers applying for low-wage LMIA don’t need to submit a transition plan. However, they must meet certain conditions, like limits on the number of low-wage temporary foreign workers they can hire and responsibilities for covering costs like transportation, housing, and health insurance for the workers.

Key Program Requirements for Low-Wage

• Cap on Temporary Foreign Workers: There is a restriction to the number of low-wage, temporary foreign workers an employer can hire to fill open positions. These restrictions are determined by the needs of the local area and industry, and businesses must respect the standards that apply to their location.

• Transportation Costs: Employers who hire temporary foreign workers (TFWs) must pay for their round-trip transportation. This means that the travel from their home country to Canada will be managed by the employer. Additionally, employers who want to hire foreign workers are responsible for their transportation costs, especially if the job is in a remote area where it can be difficult to reach.

• Accommodation Requirements: Employers must provide adequate housing for foreign workers in some cases, particularly if the job is in a remote location or the worker needs assistance with housing arrangements.

• Health and Workplace Safety: Employers must ensure that low-wage foreign workers have access to health insurance and that their workplace meets Canadian health and safety standards. This helps keep workers safe and healthy while working in Canada.

• Employment Contract: Employers must give low-wage foreign workers a written job contract that clearly explains the details of their rights as well as responsibilities. The contract should include information about pay, work hours, job tasks, and any benefits, making everything clear and transparent.

Comparison Table: High-Wage vs. Low-Wage LMIA

Processing Times for High-Wage and Low-Wage LMIA Applications

How CWC Can Help?

CWC can make the LMIA process simple as well as stress-free for employers who are looking to hire foreign workers. We offer a FREE assessment to check your eligibility and help you get started on the right path. We also stay updated on all LMIA changes and guide you through job advertisement requirements to ensure everything meets Canadian regulations.

Our team takes care of preparing as well as submitting LMIA applications and represents you directly with Employment and Social Development Canada (ESDC). We also assist with work permit applications, making the process smooth and efficient, no matter where your workers are located. We are here to help you get your LMIA approved, follow the rules, and achieve success with confidence, as we have extensive experience.