Beware of the Prevailing Wage

Effective November 16, 2015, the National Occupation Classification (NOC) codes will be linked to the prevailing wage of the geographical area.  Employers supporting foreign worker/work permit applications must pay these wage rates as required by the Labour Market Impact Assessment (LMIA) and the Ontario Immigrant Nominee Program (OINP).

The prevailing wage is the median hourly wage for a NOC code/ occupation in a specific location and it can be found at www.jobbank.gc.ca.  This prevailing wage is adjusted periodically by Employment and Social Development Canada (ESDC/Service Canada) based on information compiled by Statistics Canada.

This update impacts both the Temporary Foreign Worker Program (i.e. LMIA) and International Mobility Program (IMP) applications.  It doesn’t affect Intra-Company Transferees but employers should always be mindful of what is being offered for those international relocations as well.

Be aware and be prepared…

Employers should check the prevailing wage to ensure it is at or above the median level for the NOC before conducting the advertisement requirements for a LMIA application.  In cases where the wage changed between the initial JobBank posting (and this unexpected announcement), Service Canada may require the position to be re-advertised. Employers offering a wage that is below the prevailing wage rate will not meet the labour market requirement for the LMIA.

Please note that the prevailing wage should not be confused with the LMIA high wage/low wage application thresholds.

By | 2018-06-04T12:10:38+00:00 December 11th, 2015|Employers, Immigration, LMIA, Work Permits|Comments Off on Beware of the Prevailing Wage

About the Author: