Housing for temporary foreign workers is the cost employers most often budget wrong — not because they forget it, but because the rule is not the same in every stream. What you must provide, and what you are allowed to deduct from the worker’s pay, changes depending on how you hire.
Here is how it works in the three main streams, side by side.
What do you have to provide, and what can you deduct?
It depends entirely on the stream. This is the comparison that matters.
| SAWP | Low-wage stream | High-wage stream | |
|---|---|---|---|
| Housing | Required | Required | No obligation |
| Deduct housing from pay? | No — except in British Columbia | Yes, housing and utilities, within the affordability limit | Not applicable |
| Round-trip travel to Canada | Employer arranges and pays | Employer pays | No obligation |
| Recover travel costs? | Partly, by payroll deduction, in all provinces except British Columbia, up to the maximum set in the contract | Never | Not applicable |
| Daily transport, housing to work | Employer provides, free | — | — |
Read across a row and the pattern is clear: the two streams that require housing and travel treat deductions in opposite ways. An employer who moves from SAWP to the low-wage stream, or the other way round, and keeps the same payroll setup is getting one of them wrong.
What counts as “suitable” and “affordable” housing?
Both words have an official definition, and both are checked.
For the low-wage stream, Service Canada defines them precisely:
- Suitable means housing that doesn’t require major repairs — such as defective plumbing or electrical wiring, or structural repairs to walls, floors or ceilings.
- Affordable means it costs less than 30% of the worker’s before-tax income. That includes rent and payments for electricity, fuel, water and other municipal services.
That 30% is also the practical ceiling on what you can deduct. There is no fixed dollar cap in the low-wage stream: the limit is the affordability test itself.
In SAWP, housing must be adequate, suitable and affordable as defined by the Canada Mortgage and Housing Corporation. And one cost can never be passed on: employers cannot recover housing inspection costs from the worker, under any circumstances.
Who pays for the flights?
The employer, in both SAWP and the low-wage stream — but only SAWP lets you recover part of it.
In the low-wage stream, you pay for the round trip: the worker’s travel to the work location at the start of the job, and back to their country of residence at the end. Service Canada is explicit that these costs mustn’t be recovered from the worker.
If a low-wage worker changes employer with a new positive LMIA, the return trip becomes the new employer’s cost.
In SAWP, you arrange and pay for the round trip too, but you may recover some of it through payroll deductions — in every province except British Columbia, and never above the maximum the standard contract sets. For farms weighing the two agricultural routes, we compared them in SAWP vs. the Agricultural Stream.
Why is the high-wage stream different?
Because its requirements simply don’t include housing or transportation.
The high-wage stream asks for other things: a transition plan, recruitment efforts, the prevailing wage, annual wage reviews, health and workplace coverage, a signed employment agreement and compliance with provincial labour law. Housing and travel are not on the list.
That does not make them irrelevant. It makes them part of your offer rather than part of your obligations, which is a different conversation to have with a candidate. Which stream applies to a given position is set by the wage threshold — we covered how it is calculated in TFWP Wage Threshold in Canada.
What happens if you get it wrong?
Fines per violation, a public list, and in serious cases a ban from the program.
Non-compliance with the Temporary Foreign Worker Program can lead to administrative monetary penalties of $500 to $100,000 per violation, up to $1,000,000 per year, and a temporary or permanent ban. Employers found non-compliant are also published on a public list.
Enforcement is not theoretical. Between April 1, 2025 and March 31, 2026, the government issued more than $10.2 million in penalties — more than double the previous year.
How to budget for it
- Confirm the stream first. Every other answer follows from it.
- In the low-wage stream, price housing against the 30% rule, including utilities, and set any deduction inside that limit.
- Budget the full round trip as a cost you cannot recover in the low-wage stream.
- In SAWP, check the deduction limits in the contract before setting up payroll, and remember that British Columbia is the exception on both housing and travel.
- Keep the housing inspection cost on your side of the ledger. It can never be charged to the worker.
Where we come in
Workvantage has spent more than 18 years on the employer’s side of the Temporary Foreign Worker Program.
- Confirming which stream a position falls into, and what that obligates you to provide
- Setting up housing and deductions that pass an inspection
- Building the round-trip travel into your hiring budget from the start
If you are planning to bring workers in and want the obligations clear before you commit, start with a free assessment.
