Canada's 2026 federal budget sets new immigration targets, reforms Temporary Foreign Worker Program and replaces Canada Workers Benefit with larger benefit
Key points
- The budget sets new immigration targets and reforms the Temporary Foreign Worker Program
- The Canada Workers Benefit will be replaced by a larger benefit that ends advance payments
- The budget backs Canada Labour Code changes for federally regulated workplaces; nearly $22 billion over five years for affordability measures
Finance Minister François-Philippe Champagne tabled Budget 2026, titled "Masters of our destiny." The budget sets new immigration targets, reforms the Temporary Foreign Worker Program (TFWP), and replaces the Canada Workers Benefit with a larger benefit that ends advance payments. It also backs changes to the Canada Labour Code for federally regulated workplaces. The budget says private-sector employment rose by 214,000 over the past year, while total employment grew by only 95,000, and the unemployment rate was 6.5% in September. Nearly $22 billion over five years is allocated to new affordability measures. For information only; not legal advice.
What employers should do
- Monitor details of the TFWP reforms and assess whether existing staffing plans are affected
- Watch for changes to the Canada Labour Code as they apply to federally regulated workplaces
Policy details
- Jurisdiction
- Canada
- Status
- Proposed rule
- Effective date
- —
- Employers covered
- Federally regulated workplaces and employers using the Temporary Foreign Worker Program
- Official source
- View official source ↗
Original report: Canadian HR Reporter ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.