LMIA Work Permit Guide: Employer-Sponsored Permits in Canada

Key Summary: A Labour Market Impact Assessment (LMIA) is an employer-side approval from ESDC that allows hiring a foreign worker when no Canadian is available. The employer applies for the LMIA ($1,000 fee), and after approval the worker applies separately for an employer-specific work permit through IRCC. As of 2025, LMIA-backed job offers no longer provide extra CRS points for Express Entry, but LMIA work permits remain a key pathway to Canadian work experience and permanent residence.

What is an LMIA?

A Labour Market Impact Assessment (LMIA) is an approval issued by Employment and Social Development Canada (ESDC) that confirms a Canadian employer has a legitimate need to hire a foreign worker because no Canadian citizen or permanent resident is readily available for the position ^[1].

People often call it an "LMIA visa," but the actual process involves two separate steps handled by two different government departments:

• ESDC / Service Canada assesses the labour market impact and issues the LMIA to the employer
• IRCC (Immigration, Refugees and Citizenship Canada) assesses the worker and decides whether to issue the work permit

A positive LMIA does not by itself let you enter or work in Canada. It supports the employer's job offer. After the employer receives a positive LMIA, the worker still needs to apply to IRCC for an employer-specific work permit ^[7].

The Temporary Foreign Worker Program (TFWP) processed over 73,000 LMIA applications in 2023, with approximately 62% receiving positive assessments ^[1].

Who needs an LMIA and who does not?

The first question is never "How do I get an LMIA?" It is: "Does this job actually require one?"

When an LMIA is typically needed

• The worker does not already have an open work permit
• There is no applicable LMIA-exempt category
• The employer is hiring through the TFWP, not the International Mobility Program (IMP) ^[1]

When an LMIA is NOT needed

Many work permits are LMIA-exempt. Common examples include ^[8]:

• Post-Graduation Work Permit (PGWP) - for international graduates
• Spousal open work permit - in qualifying situations
• Intra-company transfer (ICT) - employer-specific but LMIA-exempt (codes C12/C62)
• CUSMA professionals - under the Canada-US-Mexico trade agreement
• Francophone Mobility (C16) - for Francophone workers outside Quebec
• Atlantic Immigration Program (AIP) - employer-specific, LMIA-exempt
• Significant benefit work permits - for workers who bring significant economic, social, or cultural benefit

Note for translators: Each target language should include a comparison with the equivalent employer-sponsored work permit system in that country/region. For example, Korean readers can compare with the E-7 (특정활동) visa system in Korea, Japanese readers with the Certificate of Eligibility (在留資格認定証明書) system, etc.

What are the main LMIA streams?

The TFWP is not a single program. Employers must apply under the correct stream ^[1]:

High-wage stream

For positions where the offered wage is at or above the provincial/territorial wage threshold. Requires a transition plan showing how the employer will reduce reliance on foreign workers over time.

Low-wage stream

For positions where the offered wage is below the threshold. Subject to stricter rules including caps on the proportion of low-wage temporary foreign workers (generally 10% of workforce as of 2024) ^[1].

Global Talent Stream (GTS)

A fast-track stream targeting highly skilled roles in tech and innovation. Aims for 2-week processing. Uses a Labour Market Benefits Plan instead of a transition plan ^[4].

Agricultural streams

Including the Seasonal Agricultural Worker Program (SAWP). Separate rules apply for primary agriculture positions.

Caregiver positions

Special rules apply. Note that home care worker pilot pathways to permanent residence were not re-opened for 2026.

PR-support LMIA

Used specifically to support a worker's permanent residence application. Can be filed with "dual intent" to also support temporary work ^[9].

How do high-wage and low-wage streams differ?

The classification depends entirely on the wage offered compared to the provincial or territorial threshold ^[2].

Provincial high-wage thresholds (effective June 27, 2025)

These thresholds are updated periodically. Always check the current numbers on the ESDC website ^[2].

High-wage key requirements

• Full-time position (at least 30 hours/week)
• Wage at or above the provincial high-wage threshold (median hourly wage)
• Minimum 4 consecutive weeks of job advertising in the 3 months before LMIA application
• Minimum 3 different recruitment activities
• Transition plan required in most cases: a written plan showing how the employer will reduce dependence on temporary foreign workers over time (e.g., hiring/training Canadians, increasing wages, investing in automation)
• Employer compliance obligations: ESDC can inspect at any time. Non-compliant employers face monetary penalties (up to $100,000 per violation), bans from the TFWP (1-10 years), and public listing on ESDC's non-compliant employers list

Low-wage extra restrictions

• Cap on low-wage TFWs (generally 10% of workforce) ^[1]
• Additional recruitment requirements
• Transportation and housing obligations: employer must pay for round-trip transportation to/from the worker's home country, and provide or ensure access to affordable housing (cannot charge more than 30% of gross wages for employer-provided housing)
• As of April 1, 2026: employers must advertise for at least 8 consecutive weeks and target youth in recruitment efforts ^[1]
• Possible rural area exemptions for certain caps

What is the employer process step by step?

Step 1: Confirm whether an LMIA is actually required

Check if the worker qualifies for an LMIA-exempt category or already has an open work permit ^[8].

Step 2: Determine the correct NOC code and wage

Identify the correct NOC 2021 code (TEER categories 0-5), actual duties, required qualifications, and prevailing wage using Job Bank wage data ^[1]. Incorrect NOC selection is a major refusal trigger.

Step 3: Recruit Canadians first

For most LMIA streams, the employer must demonstrate serious efforts to hire Canadians and permanent residents first:

• At least 3 different recruitment activities:
  1. Job Bank posting (mandatory unless exempted)
  2. Plus at least 2 additional methods, such as:
     • Online job boards (Indeed, LinkedIn, Workopolis)
     • Professional/industry association websites
     • Recruitment agencies
     • Local/national newspapers
     • Job fairs or campus recruitment
     • Social media job postings (company careers page)
  • At least one method must be national in scope
• Keep all recruitment records for inspection ^[1]

For low-wage positions (as of April 1, 2026): advertise for at least 8 consecutive weeks and specifically target youth ^[1].

Step 4: Prepare business legitimacy documents

The employer may need to provide business registration, CRA documents (T4 Summary, Notice of Assessment), lease/operating documents, payroll records, and contracts ^[1].

Step 5: Submit the LMIA application

Include employer details, job offer details (EMP5593 or EMP5627 form), wage and working conditions, recruitment proof, business legitimacy proof, and transition plan if required ^[1].

Step 6: Pay the LMIA fee

The standard fee is CAD $1,000 per position ^[1]. Important points:

• This fee is paid by the employer, not the worker
• A negative decision does not refund the fee
• Workers should never be asked to pay for the LMIA

Step 7: Service Canada assessment

Officers evaluate whether hiring the foreign worker would have a positive, neutral, or negative impact on the Canadian labour market ^[1].

Step 8: Decision

The employer receives either a positive LMIA or a negative LMIA. If positive, the employer passes the relevant documents to the worker.

What does the worker do after a positive LMIA?

Once the employer gets a positive LMIA, the worker needs the following from the employer ^[7]:

• Copy of the positive LMIA decision letter
• LMIA number (beginning with a letter, usually A or M followed by digits)
• Annex A / employment details
• Signed employment agreement in English or French

The worker then applies to IRCC for a work permit. IRCC reviews the LMIA support, job offer details, passport and identity documents, admissibility (biometrics, medical, criminality), qualifications, and licensing ^[7].

Important: A positive LMIA does not guarantee a work permit. IRCC can still refuse if the worker does not qualify, documents are incomplete, or the worker is inadmissible ^[7].

The result is an employer-specific work permit tied to one employer, one occupation, one work location, and a specific validity period. Once the work permit is issued, the worker must apply for a Social Insurance Number (SIN) before starting work.

How much does it cost and how long does it take?

Costs

The LMIA fee is non-refundable even if refused ^[1].

LMIA processing times (March 2026 averages)

These are averages, not guarantees. Individual cases can take significantly longer ^[3].

Positive LMIA validity

A positive LMIA is generally valid for up to 6 months after issuance. The worker must apply before it expires. A slow application can waste a good LMIA ^[1].

Work permit processing (after LMIA)

• Inside Canada: typically 4-6 months (varies widely)
• Outside Canada: varies by visa office, some as fast as 4-8 weeks, others much longer ^[7]

What about Quebec and the Global Talent Stream?

Quebec special rules

Quebec has additional requirements due to its authority over immigration selection:

• Workers may need a Certificat d'acceptation du Quebec (CAQ) from MIFI in addition to the federal work permit
• Quebec has its own simplified LMIA process for certain occupations
• The wage threshold is $34.62/hour (as of June 27, 2025) ^[2]
• Quebec has its own PR pathways (PEQ, PRTQ) that interact with LMIA-based work

Global Talent Stream (GTS) - Detailed Overview

GTS is a premium fast-track stream for high-skill roles ^[4]:

Category A: For innovative companies referred by a designated referral partner (e.g., OINP Business Immigration Services ^[10]). First 2 approved positions: at least $38.46/hour ($80,000 annual). Additional positions: at least $72.11/hour ($150,000 annual) ^[4].

Category B: For employers hiring workers in occupations on the Global Talent Occupations List ^[4].

Instead of a transition plan, GTS uses a Labour Market Benefits Plan (LMBP):

• Category A: mandatory job creation for Canadians/PRs
• Category B: mandatory skills and training investment

GTS averaged just 7 business days processing time as of March 2026 ^[3]. This makes it the fastest LMIA pathway and especially relevant for tech employers.

How can you spot LMIA scams?

LMIA is one of the most abused immigration keywords. Watch for these red flags:

• Someone asks the worker to pay for the LMIA fee (the employer must pay)
• An agent claims LMIA approval is "guaranteed"
• A fake employer offers a job without interviews or screening
• The salary is unrealistic for the occupation
• Documents use wrong logos, strange email domains, or no verifiable business presence
• Social media ads offering "guaranteed LMIA" for a fee

Critical warning: Buying an LMIA-backed job offer is fraud and misrepresentation. Under Canadian immigration law, misrepresentation can result in a 5-year ban from Canada ^[1].

Protect yourself

• Verify the employer exists (check business registrations, LinkedIn, physical address)
• Check ESDC's published list of non-compliant employers before accepting any offer ^[5]
• Never pay for an LMIA - this is always the employer's responsibility
• Use only representatives licensed by the College of Immigration and Citizenship Consultants (CICC) or lawyers
• If something sounds too good to be true, it probably is

Does LMIA still help with permanent residence?

For many workers, LMIA is not the end goal. It is a bridge to permanent residence (PR).

Major 2025 change: CRS points for job offers removed

🍁 How does removing job offer points affect your profile? Use our CRS Score Calculator to see your current score and explore ways to boost your ranking without a job offer.

In December 2024, Immigration Minister Marc Miller announced that Express Entry candidates will no longer receive extra CRS points for having an LMIA-backed job offer ^[6]. Previously:

• LMIA job offers for senior executives (CEO, VP, legislators - TEER 0 major group 00) gave 200 extra CRS points
• LMIA job offers for other skilled positions (TEER 0, 1, 2, or 3) gave 50 extra CRS points

These points have been eliminated. This fundamentally changes the direct Express Entry value of an LMIA ^[6].

LMIA still matters for PR in these ways

Despite the CRS point removal, LMIA-based work permits still provide significant PR benefits:

1. Legal work status in Canada
2. Canadian work experience that counts for the Canadian Experience Class (CEC)
3. Eligibility for Provincial Nominee Programs (PNPs) - a provincial nomination adds 600 CRS points, far more than any job offer ever did
4. Income while pursuing other PR strategies like improving language scores

Alternative PR strategies after the CRS change

• Provincial nominations (PNPs): 600 CRS points. Many PNPs require a job offer or work experience, which LMIA can support indirectly
• French language proficiency: Francophone category draws have invited candidates with CRS scores as low as 419 ^[6]
• Improve language scores: Going from CLB 6 to CLB 9 can add over 60 CRS points ^[6]
• Canadian experience: LMIA-based work experience still counts as valid Canadian experience for CEC

Typical pathways

1. Outside Canada -> LMIA work permit -> Canadian work experience -> PR
2. Inside Canada on another permit -> employer gets LMIA -> switch to employer-specific permit -> PR
3. LMIA to support PR directly through a dual-intent application ^[9]

What changed in 2024-2026?

These are the most important recent policy changes:

What are common LMIA refusal reasons?

Understanding why LMIAs get refused can help both employers and workers:

1. Weak recruitment evidence - not enough genuine attempts to hire Canadians ^[1]
2. Wrong wage or weak wage justification - paying below prevailing wage
3. Wrong NOC code - job title says one thing but duties describe something else
4. Business legitimacy doubts - new or poorly documented employers
5. Bad or missing transition plan - especially in high-wage or PR-support cases
6. Worker-side mismatch - even after a positive LMIA, the worker may lack qualifications
7. Low-wage cap exceeded - employer already has too many low-wage TFWs ^[1]
8. Employer compliance history - past violations can lead to refusal or bans ^[5]
9. High unemployment area - low-wage applications face extra scrutiny in certain regions

Key Takeaways

• An LMIA is an employer-side approval from ESDC, not a worker document. The worker separately applies for a work permit through IRCC
• The LMIA fee ($1,000) must always be paid by the employer. Never pay for an LMIA yourself
• Processing times range from 7 business days (GTS) to 192 days (PR stream) depending on the category
• A positive LMIA does not guarantee a work permit. IRCC makes a separate decision
• After 2025, LMIA-backed job offers no longer provide extra CRS points for Express Entry
• LMIA work permits still provide valuable Canadian work experience for CEC and PNP eligibility
• Always check ESDC's non-compliant employer list and never buy a job offer
• Quebec has additional requirements (CAQ) beyond the federal process
• The Global Talent Stream offers the fastest processing at around 7 business days

FAQ

What is an LMIA in Canada?

Data Currency: Figures, rates, and thresholds in this guide are based on the most recent verified data (2025-2026). Policy details are reviewed regularly, but always confirm current amounts at the linked official sources before making decisions. A Labour Market Impact Assessment (LMIA) is an approval from ESDC that allows a Canadian employer to hire a foreign worker after proving no Canadian is available for the job ^[1].

How much does an LMIA cost? The standard fee is CAD $1,000 per position, paid by the employer. Workers pay separate work permit fees ($155 + $85 biometrics) ^[1].

How long does LMIA processing take? As of March 2026: GTS averages 7 business days, high-wage 59 days, low-wage 50 days, PR-support 192 days ^[3].

Can I change employers on an LMIA work permit? Not freely. The work permit is employer-specific. A new employer needs their own LMIA and you need a new work permit.

Does a positive LMIA guarantee a work permit? No. IRCC separately assesses the worker's eligibility and admissibility ^[7].

Can a worker pay for the LMIA? No. The LMIA fee is always the employer's responsibility. Being asked to pay is a major fraud red flag ^[1].

Does LMIA still help with PR after 2025? LMIA-backed job offers no longer give CRS points, but LMIA work permits still provide legal status, Canadian work experience, and PNP eligibility ^[6].

What is the difference between LMIA and LMIA-exempt work permits? LMIA-based permits require proving no Canadians are available (TFWP). LMIA-exempt permits use exemption codes like ICT, CUSMA, AIP, or Francophone Mobility (IMP) ^[8].

What happens if my employer is non-compliant? ESDC publishes non-compliant employer names. This can affect your work permit and PR application ^[5].

Is an LMIA the same as a work permit? No. An LMIA goes to the employer (ESDC). A work permit goes to the worker (IRCC). Two separate steps, two different departments ^[1].