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Nov 6, 2019

Employers - What you need to know about the recent prevailing wage increases

The recent update to the prevailing wage across various industries in Canada will have an impact on the wage that employers must pay their temporary foreign workers if they are on certain types of immigration-related applications.

Employers of temporary foreign workers have an obligation to verify if the prevailing wage update impacts their workforce. Salary increases will be necessary if the new prevailing median wage is higher than the wage specified on the LMIA or the employee's actual wage. 

The following work permit categories have been affected by the prevailing wage increase:
 
Labour Market Impact Assesment (LMIA)
 
Current employees on Labour Market Impact Assesment (LMIA) based work permits may need their wage adjusted to meet the new prevailing wage requirements.
 
Labour Market Impact Assesment (LMIA) – Global Talent Steam

Employers must note that in addition to the requirements above, certain in-demand occupations may have a different minimum wage compared to the prevailing wage.
 
Intra-Company Transfers

Employees on Intra-Company Transfers must be on a wage consistent with the Canadian prevailing wage.
 
Permanent Residence (PR)

Employers who have sponsored workers for permanent residence through a Provincial Nominee Program must comply with the prevailing wage.

Which NOC codes have been affected?

There have been many changes across the board, but in the IT space, popular NOC codes where the prevailing wage has changed include:

2174 – Computer Programmer
2173 – Software Engineer and Designer
2171 – Information Systems Analyst
0213 – Information Systems Manager

Over the past several years, Employment and Social Development Canada has increased the number of Compliance Reviews it has issued in connection with the activities of employers using the Temporary Foreign Worker Program.
 
Employers should double-check that the wage they are currently paying their temporary foreign worker meets the new prevailing wage. Contact us today for more information on how we can help your organization with compliance audits and reviews.

 

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