Canada allows two-year terms for low-wage LMIAs
Effective November 6, 2026, eligible Low-Wage Stream LMIA applications submitted on or after that date may have a maximum duration of up to two years, up from the current one-year duration. The Government of Canada announces targeted reforms to the Temporary Foreign Worker Program to respond to labour market needs, but other proposed changes depend on provinces and territories opting in and are scheduled for March 1, 2027. Employers should consider the application date, location and occupation rules before applying.
Has the Government of Canada announced targeted reforms to the Temporary Foreign Worker Program?
Quick answer: Yes. Low-Wage Stream LMIA applications submitted on or after November 6, 2026, may have a maximum duration of up to two years, up from one year. Employers should apply based on the submission date and the rules for the location and occupation. Other proposed Low-Wage Stream changes depend on provinces and territories opting in and are scheduled for March 1, 2027.
- Application date: The up-to-two-year maximum applies to Low-Wage Stream LMIA applications submitted on or after November 6, 2026.
- CMA exception: Early childhood educators were added to the exceptions to the unemployment-rate restriction on November 6, 2026.
- Proposed changes: Provincial and territorial opt-in is required for changes scheduled for March 1, 2027.
- Employer penalties: Employers who do not respect TFW Program requirements can face administrative monetary penalties of up to $1 million per year and a temporary or permanent ban from the Program.
What changed and when it starts
Employment and Social Development Canada issued the announcement in Gatineau, Quebec, on November 6, 2026.
The maximum term changed from one year to up to two years for eligible Low-Wage Stream LMIA applications submitted on or after November 6, 2026. That start date applies to the application submission, not the date an employer receives a decision.
Early childhood educators were added to the exceptions to the unemployment-rate restriction for Census Metropolitan Areas (CMAs) on November 6, 2026. The restriction otherwise prevents LMIA applications from being processed in CMAs with unemployment rates of 6% or higher, except for priority sectors that include healthcare, construction and food processing.
The proposed Low-Wage Stream changes are separate from the duration change: they depend on provinces and territories opting in and are scheduled to take effect on March 1, 2027. The Government of Canada announcement on targeted Temporary Foreign Worker Program reforms sets out the changes.
Who is affected and who is not
Employers in rural communities retain full access to all Low-Wage Stream occupations; rural areas within large CMAs and smaller CMAs are subject to targeted access.
In Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher, Low-Wage Stream applications won’t be processed, except for priority sectors such as healthcare, construction and food processing.
In large CMAs with populations over 250,000 and unemployment below 6%, employers will have targeted access for occupations in the Canadian Occupational Projection System (COPS) and occupations added by provinces and territories. In rural areas of large CMAs and smaller CMAs with populations of 100,000 to 250,000, targeted access will also apply to COPS occupations and provincial or territorial additions.
Provinces and territories may remove occupations from either targeted-access list to reflect regional labour-market needs. Provinces and territories may also opt in to additional flexibility for eligible employers in communities they identify. These proposed changes are scheduled for March 1, 2027, and depend on provincial and territorial opt-in.
Key figures from the official page
| Measure | Figure and condition |
|---|---|
| Service delivery funding | $151.5 million over five years |
| Low-Wage Stream workforce limit | Requested increase from 10% to 15%, at provinces’ and territories’ request |
| Priority-sector workforce limit | Existing 20% limit |
| Migrant Worker Support Program funding | $82 million over four years |
| Temporary foreign worker share | About 1% of Canada’s labour force; less than 10% of non-permanent residents |
| Employer penalties | Up to $1 million per year; temporary or permanent Program bans |
The funding supports service delivery and a program that helps temporary foreign workers understand and exercise their rights. Penalties can include both a financial penalty and a Program ban for employers that fail to meet requirements.
What to do next
Check the location and occupation rules. In CMAs with unemployment of 6% or higher, Low-Wage Stream applications won’t be processed except for identified priority sectors; early childhood educators are also an exception. In other areas, targeted access depends on occupations and communities identified by provinces and territories.
Check provincial or territorial participation. Provinces and territories may opt in to added flexibility for eligible employers in communities they identify, and may identify or remove occupations from targeted-access lists.
Apply the right workforce limit. At the request of provinces and territories, eligible employers may hire temporary foreign workers for up to 15% of their workforce through the Low-Wage Stream; priority sectors retain the 20% limit.
Use worker support. The Migrant Worker Support Program helps temporary foreign workers understand their rights and how to exercise them in Canada.
Read the Government of Canada announcement on targeted TFW Program reforms.
Last checked: November 6, 2026. Rules and dates can change; confirm on Canada.ca.
Frequently Asked Questions
When do the proposed provincial and territorial changes take effect?
The proposed Low-Wage Stream changes are scheduled to take effect on March 1, 2027, if provinces and territories opt in. The changes include targeted access to occupations identified by provinces and territories, which may also remove occupations from the applicable lists to reflect regional labour-market needs.
Can provinces and territories remove occupations from targeted-access lists?
Yes, provinces and territories may remove occupations from targeted-access lists to reflect regional and economic labour-market needs. This applies to the lists for large Census Metropolitan Areas with unemployment below 6% and for rural areas of large Census Metropolitan Areas and smaller Census Metropolitan Areas.
What support helps temporary foreign workers understand their rights?
Budget 2026 announced $82 million over four years for the program.
What penalties can employers face for program violations?
ESDC says consequences for employers who do not respect TFW Program requirements include administrative monetary penalties of up to $1 million per year, as well as being temporarily or permanently banned from the Program.
Related on CanadaEver: Canada’s new temporary resident targets and how high-wage job offers now earn Express Entry CRS points.
