Canada Sets New Immigration Rules for Foreign Students and Workers in 2026

Canada has introduced a series of immigration rule changes for 2026 that will significantly affect international students, foreign workers, and skilled professionals, as the country moves to scale down its temporary resident population and reset its immigration priorities.

The changes, rolled out through Immigration, Refugees and Citizenship Canada (IRCC), reflect Canada’s stated goal of reducing the share of temporary residents to below 5% of the total population by the end of 2027. As a result, pathways for study, work, and settlement are becoming more selective, while certain high-skill categories are receiving targeted relief.

Check Out: Top Universities in Canada

Canada’s Temporary Population Cutback

Canada’s tightening stance is already visible in the numbers. The total number of study permit holders fell from over 1 million in January 2024 to about 725,000 by September 2025. This reduction underpins several policy changes that will affect students and workers in 2026.

Under the 2026–2028 Immigration Levels Plan, Canada plans to issue up to 408,000 study permits in 2026, down from 437,000 in 2025 and 485,000 in 2024.

Of these, only up to 180,000 applicants will require a provincial or territorial attestation letter (PAL/TAL), while the remaining applicants will be exempt.

Relief for Master’s and PhD Students

One of the most significant changes benefits Master’s and doctoral-level students. From January 1, 2026, students enrolled at public designated learning institutions are no longer required to submit a PAL/TAL when applying for a study permit.

The exemption also applies to existing students seeking extensions at the same institution and level of study. This change simplifies applications, reduces upfront costs linked to attestation deposits, and allows postgraduate students to apply even after provincial caps are met.

Start-Up Visa Programme Ends

Canada has closed the Start-Up Visa (SUV) pathway for new applicants. As of December 31, 2025, no new commitment certificates are being accepted, and new SUV-linked work permit applications have also stopped.

Only applicants already in Canada may apply to extend an existing SUV work permit. The government has indicated that a new, more targeted entrepreneur pilot programme is expected by the end of 2026.

New Openings for Doctors and Managers

While some routes have narrowed, Canada is creating new priority pathways in response to labour shortages.

A new Express Entry category for international doctors will be introduced in early 2026. Foreign doctors with at least one year of recent Canadian work experience will be eligible for faster permanent residence processing.

Canada is also considering new Express Entry categories for senior managers, scientists, researchers, and military personnel, which could benefit experienced professionals from countries such as India.

Home Care Worker Programme Paused

The Home Care Worker Immigration pilots have been halted due to high demand and limited intake capacity. IRCC has confirmed that the programme will not reopen in March 2026, though applications already submitted will continue to be processed.

New Citizenship Rules Take Effect

Changes under Bill C-3, effective December 15, 2025, have amended Canada’s Citizenship Act. Canadians born or adopted overseas who were previously excluded due to first-generation limits can now apply for proof of citizenship.

Individuals affected by older rules may apply for citizenship in 2026 and beyond, marking a significant shift in citizenship eligibility.

What This Means for Indian Students and Workers?

Indian nationals, who form the largest international student cohort in Canada, are among the most affected by these changes. Tighter study permit caps, higher refusal rates in recent months, and shifting work pathways mean applicants must plan more carefully.

At the same time, Canada is signalling continued openness to high-skill, postgraduate, and priority occupation applicants, even as it scales back overall numbers.

Canada’s 2026 immigration reset reflects a move away from volume-driven inflows toward controlled, skills-focused migration. While entry has become more difficult for some categories, postgraduate students, healthcare professionals, and senior-skilled workers continue to see viable long-term pathways.

For those planning to study or work in Canada, policy clarity, timing, and eligibility alignment will be more important than ever in 2026.