Hiring people from other countries or getting a job in Canada is now much harder in 2026. The government has a new Immigration Levels Plan for 2026-2028. This plan lowers the number of temporary residents allowed in the country. There is also a new system called the New Work Licence Framework. Because of these changes, paying the right wage is not just something you check once. It is a rule you must follow all the time. Starting January 1, 2026, the rules for “prevailing wage” are stricter. These rules help protect jobs for Canadians. If you are an employer who needs a Labour Market Impact Assessment (LMIA), or if you are a worker applying for a work permit tied to one employer, you must meet the new 2026 wage limits. If you do not, your application will be refused right away.
Many people want to work in Canada, but the rules make sure Canadians get jobs first. Employers must prove they cannot find a Canadian for the job. That is why wages are important. The government wants foreign workers to be paid fairly, just like Canadians.
Prevailing Wage & Median Thresholds (2026 Updates)
In 2026, the “prevailing wage” is the minimum amount you must pay for the job. Under the Temporary Foreign Worker Program (TFWP), employers must pay the highest amount from these options: the median wage from the Government of Canada Job Bank, or the wage you already pay to your current workers in the same job.
The median wage is the middle amount. Half the workers earn more, and half earn less. This helps make sure foreign workers do not take jobs by accepting low pay.
Job Bank Median Update
The wage information on Job Bank changes every year. For 2026, all new applications and ones already in process must use the median wages released on November 19, 2025. This is important because old numbers will not work anymore. Employers should check the Job Bank website often to get the latest numbers.
Provincial Median Thresholds
Each province has its own median wage. This number decides which rules apply to your application. For example, in early 2026, the median hourly wage in Ontario is $36.00. In British Columbia, it is $36.60. These numbers can be different in other provinces. You must look up the exact number for your province and job type.
The job type has a code called NOC. You need the median for that NOC code in your area.
The 20% Rule (High-Wage Stream)
The government wants to reduce how much the program is used. So, they now suggest paying 20% more than the provincial median wage for special jobs that need high skills. If you do this, your application might go faster. It can help avoid delays in areas where normal high-wage applications are refused.
Paying more shows the job is really for a skilled person that Canada needs. It also helps the application in places with many foreign workers already.
High-Wage vs. Low-Wage Requirements: 2026 Comparison
The wage you offer decides if your job is in the high-wage stream or low-wage stream. This affects many things, like how long the work permit lasts, and what the employer must provide.
Here is a simple table to compare:
| Requirement | High-Wage Stream (At or Above Median) | Low-Wage Stream (Below Median) |
|---|---|---|
| Permit Duration | Usually up to 3 years. | Limited to 1 year (new 2026 rule). |
| Cap on Workers | No limit on how many skilled workers you can hire. | Strict 10% limit on your total workforce. |
| Transportation | Not required, but it is a good idea. | Employer must pay for round-trip travel. |
| Housing | Not required. | Employer must provide affordable housing. |
| Transition Plan | You must show a plan to hire and train Canadians later. | Not required. |
Pro-Tip
In 2026, “affordable housing” means the cost of rent or shelter should not be more than 30% of the worker’s pay before taxes. This rule protects workers from paying too much for a place to live. Employers need to make sure housing meets this if they are in the low-wage stream.
Choosing the high-wage stream makes things easier for employers in many ways. It gives longer permits and no caps. But you must pay more.
Mandatory Wage Reviews & The “6% Unemployment Rule”
Employers cannot just set a wage and forget about it. Service Canada now checks wages more often to make sure rules are followed.
Annual Adjustments
If the Job Bank changes the median wage for your worker’s job code while they are working, you must raise their pay to the new amount. You have to do this before the end of the year. This keeps things fair as wages in Canada change.
Refusal to Process (6% Rule)
In big city areas (called Census Metropolitan Areas or CMAs) where unemployment is 6% or higher, Service Canada will not process low-wage LMIA applications. If your area has high unemployment, you need to pay at least median + 20% to get approved in the high-wage stream.
This rule protects jobs when many Canadians are looking for work.
New Work Licence Transition
By the middle of 2026, many open work permits (that let you work for any employer) are being stopped. The new system uses Employer-Specific Licences. These tie the worker to one employer and a specific wage range. If the wage changes without a new application, the worker or business can get in trouble.
Workers should be careful about changing jobs under the new rules.
Frequently Asked Questions (FAQ)
Can I include bonuses to meet the 2026 prevailing wage?
No. Only the guaranteed basic wage counts. Bonuses, tips, and other extra payments are not included.
What happens if the median wage drops?
You cannot lower the worker’s pay. It must stay at least what was promised in the original contract and LMIA, even if the median goes down.
Is the 10% low-wage cap applicable to all industries?
Yes, most industries have a 10% cap. But some like construction, healthcare, and food making might have a 20% cap in areas with big shortages.
Is your business ready for these new wage rules in 2026? It is important to follow them to avoid problems. Subscribe to a newsletter for monthly updates on Job Bank changes. Or get a “2026 Employer Compliance Checklist” to make sure everything is correct and ready for checks.
Disclaimer: This article is for informational and educational purposes only. Readers are advised to verify details from trusted sources like the official Government of Canada website (Canada.ca) or a qualified Canadian immigration professional before making decisions.