Why is sponsoring Nannies from overseas becoming less and less popular? Should I sponsor a Nanny from overseas or hire someone already in Canada?
There area several reasons why families are not sponsoring nannies as much as they used to.
Firstly, On Jan 1 2018, minimum wage was raised to $14 an hour. Ever since the minimum wage increase, it seems like less and less people are sponsoring nannies and caregivers from overseas. Sponsoring a nanny from overseas comes with many financial obligations as well as a lot of paperwork. With the minimum wage increase, many families are finding that the financial benefits along with the hassle are no longer worth it.
Secondly, in order to sponsor a nanny from overseas families must be ready to spend $1000 on the LMIA processing fee. This fee is not refundable. One of the reasons for this fee is that the government is trying to encourage families to hire Canadians.
Thirdly, families must also pay for all transportation costs as well as health insurance until the worker is covered by the appropriate provincial/territorial health insurance plan. Employers must also buy workplace safety insurance.
Lastly, many families enjoyed having their nanny live in with them as well. Nannies are no longer obligated to live with the family that sponsors them! Nannies may choose to live out if they desire.
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Some families still choose to sponsor a nanny from overseas even though it is an inconvenience, because they want someone who is reliable and will stay with them for a long period of time. Even though they are able to leave at any time, it is a hassle to find a new employer and do the paperwork again.
Ottawa is cutting the LMIA fee for many!
The new regulations apply to those who earn less than $150,000 a year and want to hire someone from abroad to look after their children. Those seeking to hire a caregiver for people with a physical or mental illness will also be exempt from the fee
Previously, a LMO cost $275 per position. The application fee has been increased to $1,000 for every position that an employer requests.
There will be no refund in the event of a negative LMO (Now renamed LMIA) or if the employer cancels or withdraws the application.
Effective July 31, 2013, employers applying to hire TFWs must pay a processing fee of $275 for each position requested to cover the cost of a Labour Market Opinion (LMO)
This ensures that the cost to process employer LMO applications is no longer paid for by Canadian taxpayers. In 2012, 60 percent of positive LMOs did not lead to a work permit being issued to a temporary foreign worker. This means that Canadian taxpayers’ dollars were being spent to process applications that were never used, rather could have been used on useful initiatives. With the implementation of a fee, employers will be less likely to apply for TFW positions they may not fill, helping ensure taxpayer resources are not wasted.