How do I check whether a job needs an LMIA or qualifies for an exemption?
Start with IRCC's LMIA exemption codes. IRCC tells employers to review the codes, pick the exemption that seems closest to the situation, and read its detailed description to confirm it applies. If no exemption fits, you need an LMIA. You also do not need an LMIA if the person already holds an open work permit.
Open work permit holders often include recent graduates on a post-graduation work permit. Our post-graduation work permit guides explain how that permit works, which helps if you are hiring a graduate already in Canada.
If an exemption does apply, the process moves to IRCC instead of ESDC:
- Pay the employer compliance fee, which IRCC lists as $230 as of September 2026.
- Submit an offer of employment through the IRCC Employer Portal, with your business details, the worker, the job, the wage and benefits, and the exemption code.
- Give the worker the 7-digit offer of employment number the portal issues.
- The worker then uses that number in their own work permit application.
How do I know if a position is in the high-wage or low-wage stream?
Compare the wage you are offering with the hourly wage threshold for the province or territory where the job is located. ESDC sets that threshold at the provincial or territorial median hourly wage plus 20%. At or above the threshold, you apply in the high-wage stream. Below it, you apply in the low-wage stream.
As of July 2026, ESDC lists thresholds such as $36.92 an hour in Ontario, $38.40 in British Columbia, $37.50 in Alberta and $36.00 in Quebec. These figures are updated, so check the current table on the day you prepare the application.
The stream matters because the obligations differ. High-wage employers must submit a transition plan in most cases, showing how they will reduce reliance on temporary foreign workers over time. ESDC lists exceptions, including positions of limited duration of up to 2 years and positions that need unique skills. Low-wage employers face a cap on the share of foreign workers and stricter advertising rules.
In either stream, you must pay at least the prevailing wage. For high-wage positions ESDC defines this as the higher of the median wage on Job Bank and the wage range you pay current employees in the same job with similar experience, and you must review it each year when Job Bank data is updated.
What advertising do I need to do before I apply?
You must show real efforts to hire Canadians and permanent residents first. In both streams that means advertising on Job Bank plus at least 2 other recruitment methods, with at least one method continuing until ESDC issues a decision. The minimum length of the campaign depends on the stream.
- High-wage: at least 3 recruitment activities in total, one of them national in scope, run for at least 4 consecutive weeks within the 3 months before you submit.
- Low-wage: at least 8 consecutive weeks of advertising within the 3 months before you submit, with at least 2 additional methods aimed at under-represented groups. You must also use Job Bank's Job Match service, invite matched candidates rated 2 stars or higher within the first 30 days, and turn on Direct Apply.
Keep proof of every ad, every applicant and why each Canadian candidate was not hired, so you can show the effort you made if you are asked.
What extra limits apply to low-wage positions?
Two limits stop many low-wage applications before they start. First, most employers can fill only 10% of their workforce with low-wage temporary foreign workers. Second, ESDC will not process most low-wage applications for jobs in a census metropolitan area with an unemployment rate of 6% or higher.
As of September 2026, ESDC's low-wage requirements say the cap is 20% for certain sectors, including construction, food manufacturing, hospitals and nursing facilities. Some positions have no cap, such as listed on-farm agriculture occupations and short-duration positions of 120 days or less. Employers with fewer than 10 employees may hire at most 1 low-wage foreign worker under the 10% cap, or 2 under the 20% cap.
The refusal-to-process rule has applied to applications submitted since September 26, 2024, with limited exemptions. The unemployment rate is checked at the time you submit, so a location that qualifies one quarter may not qualify the next. Check the work location's postal code before you start advertising.
What do I have to pay for or provide to a low-wage worker?
More than the wage. For low-wage positions, ESDC requires the employer to pay round-trip transportation, help make sure suitable and affordable housing is available, provide private emergency health insurance until provincial coverage starts, and have workplace safety insurance from the worker's first day.
- Housing: ESDC treats housing as affordable when it costs less than 30% of the worker's before-tax income.
- Costs you cannot pass on: the $1,000 LMIA processing fee (as of September 2026), transportation, private health insurance and workplace safety insurance cannot be recovered from the worker.
- High-wage positions: you must still pay for private emergency health insurance while the worker has no provincial or territorial coverage. The $1,000 fee is not refunded if the application is withdrawn or refused.
What are my compliance obligations after the worker starts?
You must follow the terms of the LMIA, its decision letter and annexes, and the Immigration and Refugee Protection Regulations for the whole period of employment. That includes the wage, occupation and working conditions you promised. You must keep related records for 6 years from the first day of employment under the work permit.
Inspectors can check you on-site or virtually, with or without notice. They can interview you and your employees and ask for documents, and you must take part and show you complied.
As of September 2026, ESDC lists these consequences for non-compliance:
- Monetary penalties of up to $100,000 per violation, to a maximum of $1 million per year.
- A ban from the Temporary Foreign Worker Program, which can be permanent.
- Your business name published on IRCC's list of non-compliant employers.
Can a job offer help my worker get permanent residence?
It can help with eligibility, but it no longer adds points. Since March 25, 2025, IRCC does not award Comprehensive Ranking System points for a job offer in Express Entry. A valid offer can still remove the proof of funds requirement for the Federal Skilled Worker Program and count toward Federal Skilled Trades eligibility.
For Express Entry, IRCC says a valid job offer must be:
- in writing and recent;
- full-time (at least 30 hours a week), continuous and not seasonal;
- for at least 1 year after permanent residence is granted;
- in a TEER 0, 1, 2 or 3 occupation;
- supported by a positive LMIA or covered by an LMIA exemption.
Your worker can estimate their score with our CRS score calculator and read how the federal system works in our Express Entry services overview. Provincial programs are another route to permanent residence; see our Provincial Nominee Program guide.
How far ahead should I plan a foreign hire?
Several months. ESDC suggests applying up to 6 months before the planned start date. Advertising has to happen first, and then ESDC processing starts. After a positive LMIA or an Employer Portal offer, the worker still has to apply for and receive a work permit before starting.
ESDC's published LMIA processing times as of September 2026:
- Global Talent Stream: 10 business days
- High-wage stream: 90 business days
- Low-wage stream: 82 business days
- Agricultural stream: 25 business days
- Permanent resident stream: 156 business days
ESDC notes these figures can change a lot from month to month. Build your hiring plan around the advertising period, the current processing time and the work permit step together. If you want a second pair of eyes on the timeline or the stream, contact our employer team with the job details.