Employers who are considering hiring Temporary Foreign Workers (TFWs) through the Temporary Foreign Worker Program (TFWP) might encounter the terms “high-wage” and “low-wage”.
What is the difference, and which one should you choose? The answer depends on your industry and your specific needs as an employer.
The key difference between a low and high-wage TFW, as you might have guessed, is their wage.
The federal government calculates the median wage for each province. The median wage is the halfway point for everyone in that province, meaning that half of the population is paid more and half is paid less than that (not to be confused with the average, minimum, or living wages, which are calculated differently). These are revised twice a year in April and October when there may be minimum wage increases.
Low-wage TFWs are paid less than the median wage for the province where they’ll be working. These tend to include low-skilled positions, such as seafood workers and landscapers.
High-wage TFWs are paid at or above the provincial median wage. This often applies to high-skilled positions such as specialized tradespeople or roles that require a university degree.
While that is how TFWs are classified as high or low-wage, there are also differences in the conditions around their employment, which are outlined in the table below.
| Low-wage | High-wage |
Wage | Under the provincial median wage | At or above the provincial median wage |
Contract Length | Maximum 2 years | Maximum 3 years |
Accommodations | The employer must arrange accommodations for low-wage TFWs but can charge them rent (usually 15% of their salary) | High-wage TFWs are responsible for their own accommodations |
Travel | The employer must pay for low-wage TFWs to travel to and from the work location before and after their contract | High-wage TFWs are responsible for their own travel |
Number of Positions | Unlimited low-wage TFWs can be hired on a seasonal contract (9 months or less), but there is a cap on how many can be hired on a contract longer than that | There is no maximum or minimum number of high-wage TFWs that can be hired |
As employers, you need to consider the type of work, the number of TFWs you want to hire, long-term goals and the median wages involved when deciding which stream would be the best fit for you.
With these factors in mind, Port to Port can help employers develop a strategy for hiring TFWs to fill skill and labour shortages. Book a free consultation today!
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