August 18, 2026: ESDC Recalculates Low-Wage LMIA Caps at Each Small Work Location

Employment and Social Development Canada (ESDC) updated its program requirements for low-wage positions on August 18, 2026. The heading that matters for many small Ontario businesses now reads “Variation: Employers with fewer than 10 employees at a given work location.” The same page dates the broader low-wage cap section to that day.

This is not an LMIA holiday. It is a cap-calculation rule. If a work location has fewer than 10 employees, ESDC’s formula treats the workforce as 10 people for the low-wage Temporary Foreign Worker Program (TFWP) cap. That produces a hard maximum of one low-wage temporary foreign worker where the 10% cap applies, or two where the 20% cap applies.

What the official variation says

A Labour Market Impact Assessment (LMIA) is the employer’s application to ESDC, through Service Canada. For low-wage positions — jobs paying below the program’s provincial or territorial wage threshold — ESDC also limits how large a share of the workforce at a specific work location can be temporary foreign workers.

The standard limit on that page is 10%. A 20% limit applies to listed construction, food-manufacturing, hospital, and nursing and residential-care positions, plus specified in-home caregiver occupations in a private household (NOC 31301, 32101, 44100, and 44101). ESDC notes it is evaluating those caregiver inclusions in future measures.

The August 18 variation sits on top of those percentages. Employers — including private-household employers — with fewer than 10 employees at a given work location must still complete the “Cap for low-wage positions” section of the LMIA form. For the calculation, ESDC uses a workforce of 10. The official result is:

• 1 temporary foreign worker in a low-wage position if the location is subject to the 10% cap, or
• 2 temporary foreign workers in low-wage positions if the location is subject to the 20% cap

Because the official text measures the workforce at a given work location, a business with several small sites should not assume every employee in Canada is pooled into one national headcount for this variation. Confirm the page that applies to your application type. ESDC’s dual-intent hiring page still describes a “fewer than 10 employees nationally” rule.

Who counts toward the workforce

ESDC’s list is broader than people on this week’s schedule. The total at the work location includes all full-time and part-time employees working there (Canadians, permanent residents, TFWP workers, people on other work permits, and employees on leave who are expected to return), vacant positions requested on the LMIA, and temporary foreign workers on previously approved LMIAs who have not started yet.

A full-time employee works, on average, 30 or more hours per week. A part-time employee works fewer than 30 hours and counts as 0.5 of an employee. Service Canada may ask for payroll records. Adding the new position and unused LMIA seats can push a small site over the “fewer than 10” line, or fill the one- or two-worker maximum before the new hire arrives.

What this update does not change

The variation does not waive the rest of the low-wage program. The same August 18 page still lists a $1,000 processing fee per position (current figure on that page; not refunded if the file is withdrawn, cancelled, or refused), recruitment rules, prevailing wages, transportation, housing, health insurance, workplace safety, and a signed employment agreement on or before the first day.

Two other screens still sit in front of many Ontario files. ESDC may refuse to process certain low-wage LMIAs where the work location is in a census metropolitan area with an unemployment rate of 6% or higher. That refusal page shows unemployment rates last updated July 10, 2026. Temporary rural measures may apply outside CMAs in participating provinces. Check the actual work address before you advertise.

Some positions have no cap, including listed on-farm primary agriculture NOCs, certain caregiving roles in health-care institutions, permanent-residency-only positions with no work-permit application, some short-duration roles, and seasonal low-wage positions of 270 calendar days or less, used once per year per work location.

What to do this week

1. Read the low-wage requirements page and save a dated copy. Program pages can change without a news release.
2. Count the workforce at the job’s work location, using ESDC’s inclusions and the 0.5 part-time rule.
3. Confirm whether the occupation sits under the 10% cap, the 20% cap, or a listed exemption.
4. Check the CMA unemployment table for that address, and whether rural measures apply instead.
5. Include unused low-wage LMIA seats for that site before filing another application.
6. Workers should not treat a job offer as a work permit. The employer still needs a positive or neutral LMIA unless an LMIA-exempt path applies, and the worker still files with IRCC afterward.

If you want a structured review of whether a low-wage LMIA at a small Ontario location appears to fit this variation, contact JSR Immigration & Legals at jsrlegals.ca or by phone.

This article provides general information only and is not legal or immigration advice. TFWP rules, wage thresholds, and refusal-to-process lists change. Always confirm current requirements on the official Government of Canada pages and consult a licensed professional for advice specific to your circumstances.