IMPACT – MEDIUM

What is the change? Canada has updated prevailing wage rates for a number of occupations.

What does the change mean? Employers sponsoring foreign workers in certain work permit and permanent resident categories are affected by the new rates.

  • Implementation time frame: Ongoing. Recently filed applications must be supported by the new prevailing wage rates.
  • Visas/permits affected: Labour Market Impact Assessments (LMIAs); Intra-Company Transferees (ICTs) – Specialized Knowledge work permit category; Global Talent Stream LMIA; Employer-sponsored Provincial Nominee Program categories for permanent residence.
  • Who is affected: Employers sponsoring foreign nationals in the above categories.
  • Business impact: Businesses may need to adjust their budgets to account for the changes to the prevailing wage rates. In some cases, prevailing wages increased compared with last year’s wages.
  • Next steps: Employers can check the new prevailing wage rates for specific jobs on Canada’s Jobs Bank website.

Background: Employers are required to pay foreign nationals the median prevailing wage for most work permit categories. Prevailing wage rates are determined by Employment and Social Development Canada and will vary by occupation as well as by geographic location. Employers have an obligation to review and adjust the wages for any applications filed under the LMIA and/or Global Talent Stream LMIA on an annual basis in order to ensure compliance. Under all other categories, the new prevailing wage will only apply to new work permit or extension applications.

Analysis & Comments: Employers are encouraged to review the wages they are paying foreign workers to ensure they are in compliance with new wage minimums. It is possible that officials may ask for employers to amend pending applications so that offers of employment match the new wage requirements. Employers should also note that other wage floors may apply in some circumstances, such as for workers in the Global Talent Stream.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.