Canada updates current salary data and adopts a new LWOP system

Employers in Canada who use the Temporary Foreign Worker Program to obtain Labor Market Impact Assessments (LMIAs) or GTS LMIAs, or who use the International Mobility Program to obtain employment-specific work permits. LMIA-exempt employers should be aware that in November 2022, the Canadian government updated salary data and adopted a new job classification system based on the National Occupational Classification (NOC).

These changes will affect all of these applications in the future. Failure to apply new effective salary data or NOC codes will result in claims being refused.

Update of salary data in force

Wage data was updated to November 2022. Going wages for most occupations and regions have increased from previous data.

The new salary data is now reflected on the ESDC site. The median salary column indicates the prevailing salary for the purposes of the LMIA application. Salary data can be searched by occupation or place of work.

In accordance with ESDC policy, employers wishing to obtain an LMIA must offer the temporary foreign worker (TFW) at least (or more) the prevailing wage for the position/NOC and workplace. For LMIA applications that require an employer to seek Canadian or PR candidates, job postings must include salary information and the advertised salary or salary range must be equal to or greater than the prevailing salary for the CNP and the workplace.

Current wage data must also be reviewed by employers applying for Internal Transferee (ICT) work permits under the Expert Knowledge category to comply with the mandatory wage floor policy of IRCC.

Employer takeout:

Employers should ensure that they are not relying on previous application materials or previous assessments of current salary data when submitting new applications for LMIAs or ICT expertise. Failure to meet the current salary requirement will result in the denial of these requests.

Employers employing TFWs under LMIAs that were issued at or just above the previous prevailing salary should review the new salary data and determine if the salary levels need to be increased to match the new prevailing salary. . According to ESDC policy: “Employers should review and adjust (if necessary) the TFW’s salary after 12 months of employment to ensure that the worker continues to receive the prevailing wage rate for the occupation and workplace where the TFW is employed..”

Adoption of the new CNP 2021 job codes

ESDC (for LMIAs) and IRCC (for work permits) migrated to the NOC 2021 system effective November 16, 2022. The National Occupational Classification (NOC) 2021 system will now be used to classify jobs. Provincial Nominee Programs have also adopted NOC 2021.

NOC 2021 introduces a new 5-digit job code system, replacing the old 4-digit system.

It also introduces a new 6-level skill category system, called TEER. Jobs at TEER Level 0 (Managers), 1, 2 and 3 will be eligible occupations under Canada’s Express Entry PR system. Changes to skill level categories added 16 new professions that are now eligible to apply for PR status through Express Entry (these professions are listed at the first link below).

Going forward, when quoting the NOC code on LMIA applications, in the Employer Portal, on work permit applications, or on applications for permanent residence, the NOC 2021 system must be used.

Related links:

Employer takeout:

The 2021 NOC system should be used from November 2022. Avoid relying on older application documents that cite outdated NOC codes.

Conclusion

Employers and foreign nationals using Canada’s immigration and work permit system should know and use the NOC 2021 job classification system.

Employers should also be aware that new prevailing wage data is in place and that new data should be used when assessing prevailing wage requirements or mandatory wage floors.

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