How Canada's latest post-graduation work permit tweak impacts Indian students

Students of masters programs of even 1 (one) year will now be eligible for post graduation work permit for 3 years.

Canada has decided to extend the on to extend Post-Graduation Work Permit (PGWP) to three years for all master's graduates, implying that international students who have completed their master's degree programme, even in less than two years, are now eligible to apply for a three-year Post-Graduation Work Permit Program (PGWP).

Previously, PGWPs were issued for varying durations, often shorter than three years, depending on the length of the programme. Now, all master's graduates, regardless of the program duration, will be eligible for a three-year PGWP. This means that Indian students who complete master’s degree programs of at least 8 months in Canada can now apply for a three-year work permit upon graduation.

"Now, consider the case of Priya, an Indian student pursuing a 12-month master’s degree program in Canada. Under the previous regulations, Priya would have been ineligible for a PGWP due to the programme's duration being less than two years. However, with the new policy, Priya can now apply for a three-year PGWP, offering her ample time to gain work experience and explore opportunities for permanent residency in Canada," explained Aditya Chopra, Managing Partner, Victoriam Legalis - Advocates & Solicitors.

However, starting September 1, 2024, Diploma or certificate programme graduates will no longer be eligible for a PGWP.

International students who begin a programme of study that is part of a curriculum licensing arrangement will no longer qualify for a Post-Graduation Work Permit (PGWP) upon graduation from 1 September, 2024.

Under curriculum licensing agreements, students physically attend a private college that has been licensed to deliver the curriculum of an associated public college. According to Immigration Refugees Citizenship Canada (IRCC),  these programmes have less oversight than public colleges and act as a loophole for PGWP eligibility. 

Alay Razvi, Partner ( Accord Juris LLP, Hyderabad), explains some of the prominent changes:

 The basic requirement is the student should be 18 years old and have studied at a designated learning institute in Canada. He can apply after the completion of six months. Holders of PGWP work permit, which is expired, the extension has been granted.

Some prominent changes include:

•New cap on work permits issued to spouses of international students

•Requirement for attestation letters issued from a province or territory

•Raise in cost-of-living financial requirement

•Work permit will not be issued to spouses of international undergraduate students but to spouses of international students who are pursuing a master's or PHD.

Infact, over some time, there has been a rise in undergraduates relocating to Canada along with their families on assurances without realising the ground reality. There will be a slight impact on the ongoing student plans who want to move to Canada for further studies.

How do Indian students who want to study in Canada stand to gain? 

The extension of Post-Graduation Work Permits (PGWP) to three years for all master's graduates in Canada not only achieves the objective of attracting and retaining international talent, benefiting the Canadian economy but also offers significant benefits for Indian students pursuing higher education abroad. 

Keshav Singhania, Private Client Leader, Singhania & Co explains this with the following example:

For instance, if an Indian student is now considering a Masters in Law (LLM), which is often only a course for a year vis-à-vis considering a Masters in Business Administration (MBA) which is a course for two years, then irrespective of the duration of both these courses, the students of both these courses will be provided with PGWP of three years.

"This change enhances the attractiveness of master's programs as students will perceive them as a pathway to gaining valuable work experience and enhanced opportunities for professional development. This change also provides a great potential for securing permanent residency. Consequently, there may be a notable increase in the number of Indian students opting for master's degrees in Canada. However, with the focus shifting towards master's programs to maximize post-graduation work opportunities, there could be a decline in enrollments for diploma courses," said Singhania.

By choosing programs that meet the minimum duration requirement, students can maximize their chances of obtaining a PGWP and pursuing long-term career prospects in Canada.

Illustration: Akash, an Indian student, is considering different master’s degree programmes in Canada. He opts for a 16-month programme, knowing that he will still be eligible for a three-year PGWP upon graduation. This decision allows Akash to pursue his academic interests while keeping his post-graduation employment options open and maximizing his chances of obtaining permanent residency in Canada.

Impact on career opportunities 

The extension of the PGWP duration to three years has significant implications for Indian students' career prospects in Canada. 

"This extended period of work authorization also allows graduates to explore various career paths and gain insights into the Canadian workplace culture, contributing to their professional development. Neha, an Indian student, completes her master’s degree in Canada and obtains a three-year PGWP. She secures a job in her field of study and works for two years, gaining valuable experience. Neha's employer recognizes her skills and contributions and decides to sponsor her for permanent residency, leveraging her Canadian work experience as a crucial factor in the application process," said Chopra.