To sponsor your parents or grandparents to Canada under the PGP, you must meet the Minimum Necessary Income (MNI). This is calculated as the federal Low Income Cut-Off (LICO) plus 30%, which you must prove you earned for the three consecutive tax years immediately preceding your application date.
Reuniting with family is a top priority for many Canadians, but bringing your loved ones over permanently requires significant financial preparation. The Parents and Grandparents Program (PGP) allows Canadian citizens and Permanent Residents to sponsor their elders for Permanent Residence (PR). However, Immigration, Refugees and Citizenship Canada (IRCC) needs strict assurance that you can financially support them. This is where the Minimum Necessary Income (MNI) comes into play.
Understanding how to calculate your MNI is arguably the most critical part of the entire sponsorship process. 📍 Whether you live in Toronto, Calgary, or Halifax, the federal government uses a standard formula: the LICO plus 30%. Because you must sign a legally binding 20-year undertaking to support your sponsored parents, IRCC looks closely at your Canada Revenue Agency (CRA) tax records to ensure your income is stable and sufficient.
Step-by-Step Process for Calculating MNI in Canada
Calculating your MNI requires you to look backward at your financial history. You cannot simply promise to earn enough money in the future. You must follow a precise federal method to determine if you are eligible to apply when the IRCC intake opens.
Step 1: Determine Your Complete Family Size
Your family size dictates exactly how much money you need to earn. 👪 You must count yourself, your spouse or common-law partner, any dependent children, and any previous family members you sponsored whose undertaking is still active. Crucially, you must then add the number of parents or grandparents you wish to sponsor, plus their dependent family members (even if those dependents are not coming to Canada). For example, a married couple with one child sponsoring two parents equals a family size of five.
Step 2: Check the IRCC LICO Plus 30% Tables
Once you know your family size, you must consult the official IRCC LICO tables. These figures are updated annually to reflect Canadian inflation. Because you are applying in 2026, you will generally need to prove you met the specific income threshold for the 2025, 2024, and 2023 tax years. Each year will have a slightly different minimum amount you must exceed.
Step 3: Review Your CRA Notices of Assessment
IRCC relies exclusively on official tax documents. 📄 You must obtain your Notice of Assessment (NOA) or an Option C printout from the CRA for each of the three required years. You will look specifically at Line 15000 (Gross Income). If your Line 15000 is equal to or higher than the required LICO+30% amount for that specific year, you meet the requirement.
How Much Does the PGP Sponsorship Cost?
Meeting the income requirement is only the first step; the application itself carries significant government fees. Below is a breakdown of the standard federal fees required to process a Parent or Grandparent sponsorship in CAD.
| Fee Type | Cost (CAD) | Description |
|---|---|---|
| Sponsorship Fee | $85 | The fee for assessing your eligibility as a sponsor. |
| Principal Applicant Fee | $545 | The processing fee for the first parent you are sponsoring. |
| Right of PR Fee (RPRF) | $575 | The final fee paid before Permanent Residence is granted per person. |
| Biometrics Fee | $85 | The cost for taking fingerprints and a digital photograph per person. |
If you are sponsoring two parents, your total government fees will generally exceed $2,100 CAD, not including medical exams or any lawyer fees. 💸
How Long Does the Process Take?
The timeline for the Parents and Grandparents Program is historically long. Currently, standard processing times across Canada average between 20 to 24 months from the moment a complete application is received. However, this wait can stretch longer if IRCC requests additional medical tests or updated income documents.
Frequently Asked Questions (FAQ)
Do residents of Quebec use the LICO+30% formula?
No. The province of Quebec manages its own immigration income thresholds. If you live in Montreal or elsewhere in Quebec, you only need to prove your income for the preceding 12 months, and the provincial minimums differ significantly from the federal LICO+30% rules.
Can I include my regular Employment Insurance (EI) in my MNI?
Generally, regular EI benefits for job loss are deducted from your Line 15000 and do not count towards your MNI. However, special EI benefits, such as maternity, parental, or sickness benefits, are permitted and do count toward your total income calculation.
What if I am only short by a few hundred dollars one year?
IRCC is incredibly strict. If you miss the required MNI by even one dollar in any of the three required tax years, your application will be refused. There is no flexibility on this federal requirement.
Does foreign income count towards my MNI?
Foreign income only counts if it is officially declared on your Canadian tax return and appears on your CRA Notice of Assessment. Untaxed money sitting in an overseas bank account cannot be used to meet the LICO+30% requirement.
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