January 18, 2025
BUSINESS

Minimum Wage for Temporary Foreign Workers to Increase in Canada

  • October 22, 2024
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In light of this, the Canadian government has published the following changes in minimum wages for specific low-wage temporary foreign workers in an attempt to provide decent remuneration

Minimum Wage for Temporary Foreign Workers to Increase in Canada

In light of this, the Canadian government has published the following changes in minimum wages for specific low-wage temporary foreign workers in an attempt to provide decent remuneration and align wages with national and provincial labor standards. Skilled and low-wage foreign workers will see their minimum wage changed, due to take effect that impacts the hiring process of temporary employees. What the Changes Entail

The revised wage practices will be applied to labourers employed in agriculture, food and beverage production and processing, hospitality, and childcare, where regular usage of temporary foreign labour is common. It responds to the huge disparity between the wages of these workers and the minimum prevailing wage set by each province.

It means the minimum wage will henceforth depend on the province or territory where the worker is employed. Employers will have to pay a higher amount in those areas where the provincial wages are above the federal minimum wage so that workers are paid adequately.

New Wage Rates Across Provinces
Let’s take a look into what revised minimum wage for temporary foreign workers looks like, per some of the key provinces:

Ontario: $16.55/hour
British Columbia: $16.75/hour
Alberta: $15.00/hour
Quebec: $15.25/hour
These are part of the tactics by the government to ensure that foreign workers get wages equal to their Canadian counterparts in terms of fair treatment and to enable them to put up with the increasing cost of living.

Impact on Employers and Workers
The new regulation will involve payroll adjustments for employers of temporary foreign workers, therefore increasing operational costs for some employers, especially those in agriculture and the hospitality industry, where foreign labor might dominate.

To the workers, the new wages mean greater financial security and recognition of the value they bring into the Canadian economy. “This is a step in the right direction for equality,” said one spokesperson from an advocacy group. “It ensures that temporary foreign workers are not undervalued.”

Why the Change Matters
Temporary foreign workers make an essential contribution to Canada’s economy by filling pressing labour gaps. Market-driven wage setting will go a long way in eradicating worker exploitation and ensuring that they are fairly compensated for their work.

Next Steps
These wage changes will be implemented over the next several months, and the government will continue working with employers to ensure compliance. Employers who fail to meet the new wage requirements could face penalties or have their access to the Temporary Foreign Worker Program restricted.

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