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Does the low-wage cap apply to this employer?

For employers and their representatives. ESDC caps the share of temporary foreign workers in low-wage positions at each work location: 10%, or 20% in some sectors. Some positions have no cap, and employers with fewer than 10 employees have their own formula. A few questions find ESDC's rule for this position.

Answer for your situation

Every quote below was checked word for word on IRCC’s own pages on October 25, 2026. Each answer names its source page and that page’s date.

What IRCC says, situation by situation

Yes: the cap is 10% of the workforce at the work location.

Yes: a 10% cap at this work location

In IRCC’s words:
Who counts in the workforce: “all full-time and part-time employees working at the work location, including Canadians, permanent residents, temporary foreign workers employed through the LMIA process, workers holding other types of work permits, and employees who are on leave but expected to return”
Part-time employees: “A part-time employee is a worker who works, on average, less than 30 hours per week. Each part-time employee is counted 0.5 of an employee for the purpose of the cap.”
Positions requested on this LMIA: “vacant positions for new temporary foreign workers requested on the LMIA application”
Workers approved but not yet started: “temporary foreign workers on previously approved LMIAs who have yet to start their employment”
“There's a 10% cap on the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location.”
“Any LMIA applications submitted that go above this cap may not be processed.”
“You must complete the "Cap for low-wage positions" section of the LMIA application to determine if you're within the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location. You may be asked to submit documents, such as payroll records, to support the information provided.”
“For the purpose of calculating the cap, the total workforce size at a given work location includes:”
“Employers in rural areas may be eligible for temporary measures on the proportion of temporary foreign workers hired for certain low-wage positions located in regions outside census metropolitan areas and within participating provinces and territories.”

ESDC: temporary measures for rural areas

Source: IRCC, page dated September 22, 2026
Yes: in this sector or occupation the cap is 20%.

Yes: a 20% cap for this sector or occupation

In IRCC’s words:
Who counts in the workforce: “all full-time and part-time employees working at the work location, including Canadians, permanent residents, temporary foreign workers employed through the LMIA process, workers holding other types of work permits, and employees who are on leave but expected to return”
Part-time employees: “A part-time employee is a worker who works, on average, less than 30 hours per week. Each part-time employee is counted 0.5 of an employee for the purpose of the cap.”
Positions requested on this LMIA: “vacant positions for new temporary foreign workers requested on the LMIA application”
Workers approved but not yet started: “temporary foreign workers on previously approved LMIAs who have yet to start their employment”
“For the following sectors, subsectors and occupations, the cap on the proportion of temporary foreign workers in low-wage positions that you can hire is 20%.”
“Any LMIA applications submitted that go above this cap may not be processed.”
“You must complete the "Cap for low-wage positions" section of the LMIA application to determine if you're within the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location. You may be asked to submit documents, such as payroll records, to support the information provided.”
“For the purpose of calculating the cap, the total workforce size at a given work location includes:”
“Employers in rural areas may be eligible for temporary measures on the proportion of temporary foreign workers hired for certain low-wage positions located in regions outside census metropolitan areas and within participating provinces and territories.”

ESDC: temporary measures for rural areas

Source: IRCC, page dated September 22, 2026
Yes, but the formula uses 10 employees, so at most 1 low-wage TFW.

Yes, with the formula for employers under 10 employees: at most 1 low-wage TFW

In IRCC’s words:
Who counts in the workforce: “all full-time and part-time employees working at the work location, including Canadians, permanent residents, temporary foreign workers employed through the LMIA process, workers holding other types of work permits, and employees who are on leave but expected to return”
Part-time employees: “A part-time employee is a worker who works, on average, less than 30 hours per week. Each part-time employee is counted 0.5 of an employee for the purpose of the cap.”
Positions requested on this LMIA: “vacant positions for new temporary foreign workers requested on the LMIA application”
Workers approved but not yet started: “temporary foreign workers on previously approved LMIAs who have yet to start their employment”
“Under this variation, the cap calculation formula uses a workforce size of 10 employees. As a result, employers may employ a maximum of:”
“1 temporary foreign worker in a low-wage position if subject to a 10% cap, or”
“Employers, including private household employers, with a total workforce size of fewer than 10 employees at a given work location must complete the "Cap for low-wage positions" section of the LMIA application form.”
“Any LMIA applications submitted that go above this cap may not be processed.”
Source: IRCC, page dated September 22, 2026
Yes, but the formula uses 10 employees, so at most 2 low-wage TFWs.

Yes, with the formula for employers under 10 employees: at most 2 low-wage TFWs

In IRCC’s words:
Who counts in the workforce: “all full-time and part-time employees working at the work location, including Canadians, permanent residents, temporary foreign workers employed through the LMIA process, workers holding other types of work permits, and employees who are on leave but expected to return”
Part-time employees: “A part-time employee is a worker who works, on average, less than 30 hours per week. Each part-time employee is counted 0.5 of an employee for the purpose of the cap.”
Positions requested on this LMIA: “vacant positions for new temporary foreign workers requested on the LMIA application”
Workers approved but not yet started: “temporary foreign workers on previously approved LMIAs who have yet to start their employment”
“Under this variation, the cap calculation formula uses a workforce size of 10 employees. As a result, employers may employ a maximum of:”
“2 temporary foreign workers in low-wage positions if subject to a 20% cap”
“Employers, including private household employers, with a total workforce size of fewer than 10 employees at a given work location must complete the "Cap for low-wage positions" section of the LMIA application form.”
“Any LMIA applications submitted that go above this cap may not be processed.”
Source: IRCC, page dated September 22, 2026
No: on-farm primary agriculture positions have no cap.

No cap for on-farm primary agriculture

In IRCC’s words:
“The following positions don't have any caps on the proportion of low-wage positions:”
“on-farm primary agriculture positions such as labourers, workers, managers, and supervisors in farming, livestock, harvesting, nurseries and greenhouses for NOC codes 80020, 80021, 82030, 82031, 84120, 85100, 85101 and 85103”
Source: IRCC, page dated September 22, 2026
No: these caregiving positions in healthcare institutions have no cap.

No cap for these caregiving positions in healthcare institutions

In IRCC’s words:
“The following positions don't have any caps on the proportion of low-wage positions:”
“caregiving positions for healthcare institutions (NAICS 62) for NOC positions 31301, 32101 and 33102”
Source: IRCC, page dated September 22, 2026
No: positions supporting permanent residence only have no cap.

No cap for positions supporting permanent residence only

In IRCC’s words:
“The following positions don't have any caps on the proportion of low-wage positions:”
“positions in support of permanent residency only (no application for work permit)”
Source: IRCC, page dated September 22, 2026
No: short-duration positions of about 120 days or less have no cap.

No cap for short-duration positions of 120 days or less

In IRCC’s words:
“The following positions don't have any caps on the proportion of low-wage positions:”
“short-duration positions generally of 120 calendar days or less in duration that are:”
“truly temporary, meaning for a specific short-term period or singular event where the position won't be filled after the worker leaves the country, or”
“highly mobile, meaning part of a workforce that regularly crosses jurisdictional boundaries (for example, provincial or territorial and/or international)”
“Service Canada will consider requests for this exemption for longer than 120 days on an exceptional basis”
Source: IRCC, page dated September 22, 2026
No: a seasonal position of 270 days or less has no cap, once a year per location.

No cap for a seasonal position of 270 days or less, once a year per location

In IRCC’s words:
“The following positions don't have any caps on the proportion of low-wage positions:”
“low-wage positions in seasonal industries that don't go beyond 270 calendar days:”
“seasonal is defined as when both the industry and the occupation experience significant fluctuations in labour demand between "peak" and "off-peak" periods, usually occurring on or around the same dates every year”
“exemption can only be used once per year in which the work is expected to begin, per work location. To utilize the one-time per year exemption for multiple applications, you must submit them all at the same time”
Source: IRCC, page dated September 22, 2026
No: the cap is on low-wage positions.

No: the cap counts low-wage positions

In IRCC’s words:
“There's a 10% cap on the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location.”
Source: IRCC, page dated September 22, 2026

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Written by AHI Life from IRCC’s own pages; the quotes are IRCC’s words, re-read on their pages every day. General information, not legal advice, and not yet reviewed by a licensed consultant (RCIC). Only a licensed representative may charge you for immigration advice.