Canada raises maximum low-wage work permit length for foreign workers from one year to two

OTTAWA — The Canadian government has announced changes to the Temporary Foreign Worker Program (TFWP) that allow work permits of up to two years, instead of one year, for eligible workers in the low-wage stream.

The change took effect on Nov. 6, 2026, and applies to Labour Market Impact Assessment (LMIA) applications that employers submit from that date.

The change is meant to give workers and employers more stability and reduce the need for frequent permit renewals, while measures to give priority to Canadian citizens and permanent residents in the labour market remain in place.

What has changed for work permits?

Employment and Social Development Canada has raised the maximum period of employment that an LMIA can support in the low-wage stream from 12 to 24 months.

This allows Immigration, Refugees and Citizenship Canada (IRCC) to issue a work permit of up to two years if the worker and the employer meet all requirements.

However, the decision does not automatically extend existing permits, and it does not guarantee that every worker will receive a two-year permit.

The actual length of a permit depends on the job offer, the approved assessment, the validity of the passport and the decision of immigration authorities.

LMIA applications submitted before Nov. 6 also do not automatically benefit from the new maximum.

Who benefits from the new decision?

The change applies to foreign workers in jobs classified in the low-wage stream, according to the criteria set for the province or territory.

A job falls into this category when its wage is below 120 per cent of the reference median hourly wage in the area where the work takes place.

When the decision was published, the cut-off for this category was $36.92 an hour in Ontario and $38.40 an hour in British Columbia.

Describing a job as low-wage does not mean a worker's pay must be at the legal minimum wage, since the classification relies on a different standard set by the government.

Restrictions remain in 30 Canadian areas

Despite the new measures, the government still refuses to process low-wage LMIA applications in metropolitan areas where the unemployment rate is six per cent or higher, with the exception of some priority occupations.

The restrictions currently cover 30 metropolitan areas, including Toronto, Vancouver, Montreal, Calgary, Edmonton and Halifax.

This means employers in these areas may not be able to obtain a new assessment to hire a foreign worker or extend a worker's employment, even after the increase in the maximum permit length.

The list of affected areas is scheduled to be updated on Jan. 8, 2027, according to the government's schedule.

New exemption for early childhood workers

Minister of Jobs and Families Patty Hajdu announced that early childhood educators have been added, effective Nov. 6, to the list of occupations exempt from the high-unemployment restrictions.

The existing exemptions also cover essential sectors, including health care, construction and food manufacturing.

The step is aimed at addressing labour shortages in child care services while keeping the program's general restrictions in place.

The government is also proposing to allow some regions, with the approval of provinces and territories, to raise the share of low-wage foreign workers permitted for eligible employers from 10 to 15 per cent, starting in March 2027.

This last measure remains a proposal that depends on the participation of provincial and territorial governments, and is not a rule that applies to all businesses.

What about workers whose permits expire soon?

A worker who wants to extend a permit tied to the TFWP usually needs the employer to obtain a new LMIA.

If the worker applies for an extension before the permit expires, the worker may be able to continue working under maintained status, subject to the conditions that apply to the case.

On Oct. 28, 2026, IRCC removed the previous time limit on waiting for an LMIA decision while some concurrent extension applications are processed, which gives workers additional flexibility.

However, continued legal status does not happen automatically once an employer submits an assessment application, so workers must meet the deadlines and conditions for work permit applications.

Does the change make permanent residence easier to obtain?

A longer permit may help eligible workers gain additional work experience in Canada, but it does not automatically grant permanent residence.

Eligibility for a transition to permanent residence remains tied to the requirements of federal and provincial immigration programs.