Canada Doubles Low-Wage Foreign Work Permit Duration From 1 to 2 Years. Check Your Eligibility!

Canada has increased the maximum duration of Labour Market Impact Assessments (LMIAs) under the low-wage stream of the Temporary Foreign Worker Program (TFWP) from one year to two years. Announced by Employment and Social Development Canada (ESDC) on November 6, 2026, the change applies to low-wage LMIA applications submitted on or after that date. It allows eligible foreign workers to receive work permits for up to two years.

The revised LMIA duration took effect on November 6, 2026. It applies to applications submitted through the low-wage stream of the TFWP on or after this date. Applications submitted before November 6 remain subject to the previous rules. Employers must still meet the applicable LMIA requirements, and foreign workers must obtain approval from Immigration, Refugees and Citizenship Canada (IRCC) to receive their work permits.

A position falls under the low-wage TFWP stream when its hourly wage is below 120% of the median hourly wage in the province or territory where the job is located. The applicable threshold varies by location. For example, the threshold was $36.92 per hour in Ontario and $38.40 in British Columbia at the time of the announcement. Employers must follow the relevant wage requirements when submitting LMIA applications.

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) to assess the impact of hiring a foreign worker on Canada's labour market. Employers generally need a positive or neutral LMIA to hire foreign workers through the TFWP. It demonstrates that no qualified Canadian citizen or permanent resident is available to fill the position under the applicable requirements.

No. The new rule increases the maximum LMIA duration to two years, but it does not guarantee every low-wage TFWP worker a two-year work permit. The actual duration depends on the LMIA issued by ESDC and the decision made by IRCC. Workers and employers must continue to meet the programme's eligibility requirements, and regional restrictions may prevent some employers from obtaining low-wage LMIAs.

Canada maintains a moratorium on processing low-wage LMIAs for non-exempt jobs in Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher. At the time of the announcement, the restrictions covered 30 CMAs, including Toronto, Vancouver, Montreal, Calgary, Edmonton and Halifax. ESDC updates the list quarterly, with the next update scheduled for January 8, 2027.

Certain in-demand sectors, including construction, agriculture and healthcare, are exempt from Canada's low-wage LMIA moratorium. In its November 6, 2026 announcement, ESDC also added early childhood educators to the list of exempt occupations. These exemptions may allow eligible employers in affected regions to submit low-wage LMIA applications. However, employers must still meet the relevant programme requirements and other applicable conditions.

Yes, Indian workers may apply to extend their existing TFWP work permits, provided they meet the applicable requirements. However, their employers must obtain a new LMIA to support the extension. The two-year maximum duration does not automatically extend an existing permit. Workers should also consider regional LMIA restrictions, as employers in areas covered by the moratorium may be unable to obtain LMIAs for non-exempt positions.

Concurrent processing allows eligible foreign workers to apply for a work permit extension while their employer's LMIA application is still pending. If the worker's existing permit is due to expire within two weeks and the employer has applied for the LMIA with sufficient lead time, they may submit an extension application. IRCC holds the decision until the LMIA is issued and attached to the application. The time limit for concurrent processing was removed on October 28, 2026.

Maintained status allows eligible foreign workers to continue working in Canada under the conditions of their previous work permit while IRCC processes a timely extension application. To benefit, workers must apply before their existing permit expires and remain in Canada while awaiting a decision. If their permit expires before they submit an extension application, they generally cannot continue working under maintained status. The applicable immigration conditions must be followed throughout the process.