How the 2-Year Low-Wage TFWP Permit Affects Workers and Employers

Employers and workers engaged with Canada’s low-wage stream of the Temporary Foreign Worker Program (TFWP) face a new reality as of November 6, 2026. A press release from Employment and Social Development Canada (ESDC) confirms that new low-wage Labour Market Impact Assessments (LMIAs) can now authorize up to two years, rather than one. Yet, for much of urban Canada, a strict moratorium continues to stall LMIA processing for most low-wage roles, cutting off access for many. These adjustments force a rethink for anyone hiring or working in Canada’s principal cities under the TFWP—reshaping both expectations and responsibilities.

What is the New 2-Year Low-Wage TFWP Work Permit?

Employers using the TFWP’s low-wage stream are now able to request LMIAs for up to two years, instead of facing the previous one-year limit. As a result, a foreign worker with an LMIA granted after November 6, 2026, could hold a single work permit for up to two years—if all criteria are satisfied. This change extends the planning cycle for both parties before another LMIA or permit application must be made^[1].

This revised rule targets LMIAs filed through the low-wage stream from November 6, 2026, onward. LMIAs or permits processed before then remain capped at one year^[1].

Roles qualify as low-wage only if they pay under 120% of the jurisdiction’s median hourly wage. In November 2026, the cut-off is $36.92 per hour in Ontario and $38.40 in British Columbia^[1]. Wage cut-offs change regularly; official pay tables must be checked before preparing your application.

Does the Longer Permit Change How Employers and Workers Should Plan?

Employers can benefit from fewer LMIA filings and reduced risk of disruption—provided the workforce stays constant. The shift has potential to lower government, legal, and HR costs, and to keep foreign hires from losing status while waiting for new authorizations. From a worker’s perspective, periods of stability and fewer application cycles now become possible. Retaining employment and legal status becomes easier when annual LMIA or permit renewals are not required^[1].

Yet, those planning beyond two years must still repeat the LMIA and work permit process. Each application must continue to prove the absence of available Canadians or permanent residents for the role^[1].

The double-length permit benefits only those who can still obtain LMIAs—something now out of reach in many of Canada’s largest urban labour markets under the moratorium.

What is the Low-Wage LMIA Moratorium and Who Is Affected?

Since September 26, 2024, ESDC has maintained a moratorium on new low-wage LMIAs in Census Metropolitan Areas (CMAs) whose unemployment rates reach or exceed 6%^[2]. Regions on the list must suspend most low-wage foreign worker hiring or renewals—almost no exceptions. Thirty CMAs currently fall under this policy, such as Toronto, Vancouver, Montreal, Calgary, Edmonton, and Halifax^[2].

The government refreshes this list every quarter, using up-to-date labour force data. The next scheduled review will occur on January 8, 2027^[2]. Should your local unemployment rate drop below the 6% threshold, LMIA processing might resume; to verify, consult the latest ESDC bulletin or check the Canadian government website.

Are There Any Exemptions to the Moratorium?

Certain sectors remain outside the moratorium’s reach, regardless of local employment figures. Construction, agriculture, healthcare, and early childhood education are exempt as of November 2026^[3]. Other historic exceptions have spanned food manufacturing, jobs in hospitals, nursing or residential care facilities, and private households hiring caregivers. When working in one of these areas, low-wage LMIA applications and renewals do remain possible, irrespective of geography^[3].

Double-check your exact occupation’s eligibility status before planning an application. Ineligible workers and employers must seek alternatives: possible options include shifting to exempt regions or pursuing non-LMIA pathways in Canada’s immigration system.

How Do Maintained Status and Concurrent Processing Work for TFWP Extensions?

When a work permit nears expiry and a fresh LMIA application is on file, workers may stay and keep working under “maintained status”^[4].

The process is straightforward: submit your extension request before the current permit lapses, and IRCC authorizes you to remain and work under unchanged conditions until a decision is rendered^[4]. This only holds if you stay inside Canada while the application is reviewed; departures can forfeit this right until the new permit is granted.

Workers down to their last fortnight of legal status, whose employer has filed an LMIA in time, are eligible for “concurrent processing.” The extension application goes in while LMIA processing continues, with the LMIA added to the file once approved^[2].

As of October 28, 2026, IRCC scrapped its old 90-day cap on how long an application is held open awaiting a supporting LMIA. Case officers now wait as long as needed, as long as the worker applied before expiry and the employer filed promptly^[2]. This approach wards off refusals caused by slow LMIA turnaround, but does not resolve situations where a moratorium prevents LMIA processing altogether.

What Should Workers and Employers in Moratorium Cities Do Now?

Moratorium cities restrict low-wage LMIA options to exempt sectors only; for everyone else, no new or renewed low-wage work permits are possible. Those whose permits are nearing expiry outside these exemptions will lose status and be unable to extend under the TFWP’s low-wage stream^[2].

Employers must audit their team and hiring strategies. Can any roles qualify for an exemption? Would shifting to high-wage recruitment or non-moratorium regions solve the gap? Workers should investigate alternatives, which may include the Provincial Nominee Programs, founder pathways, or skills-based immigration streams, if eligible. Guidance such as the VisaRoads Canadian work permit guide details LMIA-free options for those needing other routes.

The policy environment is unsettled. New moratorium lists come out in January 2027; ESDC and the provinces are in negotiations for further TFWP reforms that could change access and rules^[5].

Key Takeaways and What to Do Next

Our view: the two-year low-wage TFWP permit does improve certainty for those still able to get LMIAs, but in the 30 moratorium-affected CMAs, most low-wage recruitment and extensions remain blocked except in priority sectors. Those affected must check for occupational exemptions and monitor the government’s next update. Where the moratorium does not apply, extended permit duration brings a longer planning cycle and lower bureaucratic load.

Those seeking stepwise support through the Canadian permit process, or who wish to compare skilled and business migration choices, should visit the VisaRoads work permit guide. Founders and entrepreneurs may consult the Canada Start-up Visa for tailored routes. VisaRoads does not provide legal advice, but offers business planning, financial modelling, and mentorship across Canadian and international application streams. For a free initial check, use our Express Entry tool or reach out for a custom review.