In the fast-paced and high pressure business world, companies use employee benefits to nurture their employees and  ensure their well-being. 

This guide covers all you need to know about employee benefits (also known as group benefits and group health insurance). We’ve explained what they are, their types, structures and compliances, and how to build an employee benefits package. 

What are employee benefits?

Employee benefits are services and perks offered to employees over and above their salaries and wages. Employee benefits plans typically include a suite of benefits such as paid time off (PTO), health and dental insurance, disability and critical illness insurance, retirement benefits, and more. Certain benefits such as pension plans and employment insurance are mandatory by law to ensure a basic level of financial security and protection for employees. Other benefits are voluntary and are offered at  the employer’s discretion to attract and retain talent, boost morale and differentiate themselves in the competitive job market. 

Know more about employee benefits plans in Canada

Why are employee benefits important?

Employee benefits help boost employee well-being and morale, and can increase job satisfaction and build loyalty. Here’s why employee benefits are important:

Do employers have to provide employee benefits in Canada?

There are certain mandatory employee benefits that all employers are required to provide by law. These are:

Apart from the mandatory benefits, many employers offer supplemental benefits like health and dental plans, life insurance, disability insurance, etc. These are optional benefits that are part of an employee benefits package and are offered at the sole discretion of the employer. 

Types of employee benefits

Mandatory employee benefits in Canada can be categorized into two types:

1. Benefits mandated by law
2. Benefits offered on an optional basis

Employment Insurance (EI)

Employment Insurance (EI), run by the Federal Government, is a program that offers temporary financial support to employees who are unable to work due to one of the following reasons:

Unemployed workers can receive up to 55% of their average weekly earnings as EI. As of January 1, 2024, the maximum yearly insurable earnings in Quebec and the rest of Canada is $63,200 which means an unemployed worker can get $668 per week. 

Here are the key features of employment insurance:

The program is administered by Service Canada, a government agency, and individuals typically apply for benefits online or by phone. They must continue to meet eligibility requirements while receiving benefits, such as actively seeking employment and reporting any income earned during the benefit period.

Pension plan 

The Canada Pension Plan (CPP) is a retirement savings plan that provides a stable income during retirement for individuals and their families.In addition to retirement benefits, the CPP also offers disability and survivor benefits. 

The CPP makes pension contributions mandatory for most employees. The pension contributions are typically split equally between the employer and the employee. Employees can opt to receive  a reduced pension amount as early as the age of 60, although the full benefits start to pay out, once they reach the age of 65 years. Any employee earning less than $3,500 per year is exempt from this contribution along with their employer. Similarly a self-employed individual may voluntarily opt-in to the program.

Under the CPP, employers and employees pay 5.95% of a worker’s salary in annual contributions which is capped at $3,867 per year. 

While all of Canada follows the CPP, Quebec has its own pension plan called the Quebec Pension Plan (QPP), applicable only to the province of Quebec. It requires employers and employees to contribute 5.4% of a worker’s salary and caps it at $3,867 per year. 

Workers’ compensation insurance

Workers compensation is a form of social insurance that provides financial and support services to employees who experience work-related injuries or illnesses. Every province has a Workers’ Compensation Board (WCB) that manages and regulates the compensation  offered to employees. The WCBs also decide the premiums that employers need to pay. 

While most organizations need to register with their provincial WCBs, there are certain categories that are exempt from paying workers’ compensation insurance. The province-based exemptions are listed below: 

Vacation benefits 

Based on where an individual is working in Canada, their vacation entitlement will vary. They can be accrued in one go or prorated for an employee. The following table gives an overview of the provincial vacation entitlement in Canada:

Maternity and parental leave

Employees are entitled to 17 weeks of maternity leave that can be taken up to 13 weeks before the expected date of delivery. Employees who adopt a child are entitled to 63 weeks of parental leave. The leave can be taken by one parent or shared between both parents. 

Sick leave

Different provinces have varying rules when it comes to sick leave. Some of the key features of sick leave as an employee benefit are:

• Sick leave is not pro-rated. A set number of sick leave days are given to the employees at the beginning of each year 
• Employees who join in the middle of a year are entitled to the entire number of sick leave for that whole year 
• Sick leave cannot be cashed out and is not carried over to the next year

The following table has the sick leave entitlement for each province in Canada:

Group health benefits 

Canada has provincial health insurance that is offered to every citizen. So the question is—why should an employer offer health insurance at all? It’s because provincial health insurance only covers some essential medical services while group health benefits are more comprehensive in nature. 

Group health benefits are cheaper than individual health insurance. They’re purchased by an employer and offered to all full-time and/or contractual workers.

Group health benefits typically include:

Learn more about why group health insurance matters

Group Registered Retirement Savings Plans (RRSP)

Group Registered Retirement Savings Plans (GRRSPs) are offered in addition to the mandatory pension plan that most employees are entitled to. RRSPs help employees build additional wealth for when they retire and also give immediate tax benefits to the contributor. 

RRSPs are regulated by the Canada Revenue Agency and the contributions yield returns since they can invested in one of the following options:

Disability Insurance (DI)

There are two types of disability insurance that an employer can choose to offer: short-term disability insurance and long-term disability insurance. Short-term disability insurance typically covers a shorter duration, from a few weeks up to six months. Long-term disability insurance is for employees who are unable to work for longer periods and usually begins after the expiration of short-term disability benefits or after a waiting period. 

Disability insurance covers any medical condition that prevents the employee from working such as mental health issues, fractures, back injuries, carpal tunnel, seizures, and hearing or vision loss. Short term disability benefits can be paid out as weekly benefits while long term disability benefits are typically paid out on a monthly basis to an eligible employee. 

Critical illness coverage 

An employee benefits package can also include critical illness coverage that is offered to workers who suffer a heart attack, cancer, stroke, kidney failure, Parkinson’s disease, aplastic anemia, and 26+ common conditions as listed by the Canadian Life and Health Insurance Association (CLHIA).

It is easy to confuse critical illness with a disability. For instance, blindness and paralysis are critical illnesses and disabilities. 

Learn more about the differences between critical illness and disability insurance 

Life Insurance

Life insurance provides financial support to family members in the event of the individual’s passing away. Life insurance as an employee benefit is important to help manage the financial impact from an earning member’s demise. It can be used to: 

• Pay for funeral expenses
• Pay off debts 
• Replace lost income 
• Make charitable donations 

Employers can pay the entire premium or split the cost with the employees for life insurance benefits. 

Physical disability can be an uncomfortable topic of discussion for anyone. More so for people in their prime earning years who are oblivious to the dangers of a physical disability. As per the Canadian Survey on Disability (CSD), 1 in 7 Canadians identify as having a disability and 33 percent of workers aged between 30-64 are likely to experience some kind of disability for more than 90 days—this makes group disability insurance an important employee benefit. 

Employers who value their employees will also want to protect their physical well-being. Group disability insurance helps in doing just that. 

What is group disability insurance?

Group disability insurance is a financial safety net for your employees if they are unable to work due to a non-job related disability. An employee with group disability benefits will receive a portion of their income during this difficult time so they can focus on getting better. 

Most insurers replace a certain percentage of an employee’s regular income. Depending on the group disability plan, the benefit amount is paid on a weekly or monthly basis. Typically, an employee will receive group disability benefits until they have recovered and resumed working. 

Types of group disability insurance coverage

There are two types of group disability plans:

• Short-term disability (STD)
• Long-term disability (LTD)

Group short-term disability benefits

When we talk about disability, we usually think of things like paralysis, cancer, or a serious injury. However, there are certain conditions for which recovery might take anywhere between 15-26 weeks. These are the conditions that are covered under a short-term disability insurance plan. 

While the definition of disability and the coverage options can vary from one insurer to another, most group disability insurance plans cover the following common issues:

Group long-term disability benefits

Long-term group disability benefits replace an employee’s income if they are unable to work due to a major illness, accident, or injury. Depending on the plan that is being offered, long-term group health insurance benefits can replace employee incomes up to the age of 65. 

Similar to how short-term plans work, group long-term disability insurance coverage varies depending on the plan and the insurer. Most long-term group disability plans will typically cover:

Are both long- and short-term group disability benefits necessary?

Most group disability plans cover LTDs but not STDs. This is mostly due to budgets and priorities. In our opinion, this also often makes sense. Many short-term disabilities can be covered under a group health plan or employment insurance which is a mandatory employee benefit. So if employers choose not to offer STDs that is okay. 

LTDs on the other hand are very important. Any employee who is unable to work for a longer period of time due to a disability will need all the help that they can get. An STD will help them and their loved ones deal with any financial issues while the disabled employee can focus on rehabilitation. 

Know more about how group health benefits work

What is the definition of disability for an employee benefits plan?

What conditions are not considered as a disability?

The inability to work due to any major illness, injury, or accident is considered to be a disability and can be covered under employee benefits plans. But there are conditions that simply do not qualify as a disability. Some of these are:

These conditions are not covered in group or individual disability insurance plans.

Should employers offer group disability benefits?

Group disability insurance is not a mandatory employee benefit. That being said, any employer who wants to hire and retain top talent should consider adding this to their group health benefits plan. A group disability insurance plan shows that an employer truly values and cares for their employees during the latter’s most difficult time. 

Building a group disability benefits plan

We know it’s not easy for anyone to discuss disability. But the statistics are stacked against us and with an increasing number of Canadians who are facing disability issues, it’s time to have a real conversation about it. 

Our licensed advisors help employers build group benefits plans that will meet the organization’s budget and coverage needs of the employees. Speak to us today, answer a few simple questions about your business, and we’ll help build a plan for you and your employees. 

What are the non-taxable group benefits in Canada?

As we mentioned earlier, some group benefits in Canada aren’t taxable. Here are the ones you can claim tax exemptions on:

Which are the best group insurance providers in Canada?

To decide the best group health insurance provider in Canada, different factors like coverage options, customer service, pricing, and reputation must be considered. 

Some top providers in our experts’ opinion include:

However, the best provider for a business will depend on its specific needs, budget, and preferences.

Life is unpredictable. One moment, you’re walking down the same stairs which you use everyday. And the very next, you’ve missed a step and ended with a fractured knee. Sounds painful? It certainly is. And the additional expenses that come with an accident don’t help ease the pain at all. A group accident insurance plan helps employees deal with the unexpected twists (sometimes quite literally) that life throws at them. 

One of the many additions to an employee benefits plan is a group accident insurance policy. Just like group disability and group critical illness benefits, an employee accidental insurance policy can help employees during a difficult time. But what exactly is it and what does it cover? Let’s find out. 

What is group accident insurance?

A group accident insurance policy pays a lump sum amount to an employee in the event of an accident. This benefit can ease the financial burden of a medical intervention that may be required for an employee to recover. A group accident insurance policy will usually have Accidental Death and Dismemberment (AD&D) benefits—more on this later. 

Apart from the physical strain that an accident puts an employee through, it also causes immense financial stress that they may not be prepared for. A group accident insurance policy can help them and their families with the costs incurred during the recovery process. The payout from a group accident insurance goes directly to the employee, who can use it for hospitalization, medication, rehabilitation or in covering other personal expenses that a provincial health plan doesn’t cover. 

Employee accident insurance plans extend beyond work-related injuries. Any employee covered under this policy will get the benefit regardless of how or where an accident occurs. This means that an employee accidental insurance policy should not be limited to high-risk occupations such as construction workers or truck drivers. It should be offered to employees regardless of their job or occupation.

What do employee accident benefits cover?

Different insurers offer different kinds of coverage under a group accident insurance plan. But most policies cover a range of accidental injuries including:

Group accident insurance policies cover the medical expenses associated with an accidental injury. These include:

Group Accidental Death and Dismemberment (AD&D) benefits

AD&D benefits provide coverage for an employee if they meet with an accident regardless of where they are in the world and whether they’re on or off the job. If an employee suffers any of the losses listed in their policy document, they will get AD&D benefits. An AD&D policy usually has a defined meaning of “accident”. Most insurers define it as a sudden and unexpected event that causes unexpected injuries or bodily harm. 

Group AD&D plans are customizable and employers can build a plan according to their unique needs. These customization options include:

How do group accident benefits work?

Typically, the premiums for a group accident insurance policy are paid by the insured employee through payroll deductions. Employees have the option to add their family members to the policy and pay any additional premium to cover the dependents.

Employee accident insurance plans are also often portable so an employee can continue to be covered under this policy, even if they leave their organization. Group accident insurance is a pretty straightforward policy. An insured employee will get a lump sum payout if they meet with an accident and they can choose to use this benefit in any way they want to. Apart from the medical costs, they can also use it to:

✅ Hire child care if required 

✅ Substitute income from missing work 

✅ Home healthcare requirements 

✅And more

Who pays the insurance premium?

The premium for a group accident insurance cover is typically paid by the insured employee. This policy is usually offered by employers as an optional supplemental cover in addition to other benefits. Depending on the insurer and the plan they offer, the premium can vary. 

How is the premium for employee accident benefits calculated?

Different insurance companies have different methods to calculate the premium for an employee accident premium policy. Generally, there are five key factors that can determine employee accident insurance premium rates:

The bad news is that critical illness is on the rise in Canada. The good news is that survival rates are also increasing. Canadians who have a heart attack are more likely to survive it with the right kind of medical intervention. In fact, the survival rate for cancers is also on the rise—again, due to medical advances and interventions. And that’s where a group critical illness insurance comes in. It gives employees the opportunity to get the right kind of medical help when they truly need it. 

We know that employees’ health can have a major impact on their work. We also know that with advancement in medicine, treating critical illnesses has become easier than ever before. Both these factors make group critical illness insurance an integral part of an employee benefits plan. Let’s find out more about it. 

What is group critical illness insurance?

Group critical illness insurance is a lump sum benefit paid to an employee who has been medically diagnosed with a qualifying critical illness. Insurers will typically list the illnesses covered under a group critical illness insurance plan in the policy document. 

As mentioned above, critical illnesses are on the rise. But so are survival rates. This means that there is a growing need for help in covering the costs associated with a critical illness recovery process. And this is precisely what employee critical illness insurance does.

How does group critical illness insurance work?

With group critical illness insurance, an employee will get a one-time lump sum payment if they receive a medical diagnosis for a critical illness after the policy comes into effect. Most employers offer group critical illness insurance to all their employees who have successfully completed a waiting period that can vary between 30-45 days. 

Unlike life insurance, the payout for critical illness doesn’t happen after an insured employee’s death. It’s a benefit that is given to them to help with the immediate financial burdens of a critical illness. Most insurers will offer plans that cover serious illnesses such as cancer, heart attack, stroke, paralysis, kidney failure, and more. 

What does group critical illness insurance cover?

Every insurer has a fixed list of serious ailments that an employee critical illness insurance covers. Employees can either get basic coverage with 3-4 illnesses covered or enhanced coverage with 25+ conditions. 

Basic group critical illness coverage includes:

Enhanced employee critical illness insurance coverage includes:

Learn more about critical illness insurance cover

Are employee critical illness insurance plans a taxable benefit?

Any premium for group critical illness coverage that is paid by the employer will be a taxable benefit for the employee. Since the employer is paying the premium, it will be considered to be additional income for the employee. This means that the employee will have to report it on their tax return. 

However, if an employee is diagnosed with a critical illness, the benefit that they will receive will be tax-free. The tax liability is only on the premium amount. 

Importance of group critical illness insurance for employees

Canada has a well-defined and regulated healthcare system. But provincial healthcare plans are not comprehensive and might not cover some of the costs associated with an illness. That is where a group critical illness insurance plan plays an important role. 

Apart from being relatively inexpensive when compared with individual critical illness insurance plans, employee critical illness insurance also doesn’t require a medical examination. Employee critical illness insurance benefits can help with: 

Is group critical illness insurance worth it?

Employees are arguably the most important factor to an organization’s success. Employers who value their workers should absolutely offer group critical illness insurance as part of employee benefits. Employee critical illness insurance will add to an organization’s hiring and retention strategy and will help them stand out as an employer of choice for top talent. 

Most people who are diagnosed with cancer might have to stay home or in a hospital leading to wage losses. Keeping this in mind, offering employee critical illness insurance is the right step for any empathetic employer. 

Integrating group critical illness insurance in an employee benefits plan

A critical illness can be a mentally and emotionally difficult time for an employee and their family. Navigating the process to recovery—from hospital visits, to medication, and recovery—can take a toll on the employee and their loved ones. At such a time, offering a group critical illness insurance cover can make all the difference. 

Our licensed and expert advisors will help you understand how to integrate a group critical illness insurance plan to your employee benefits package. Speak to us today to get started. 

An average employee in Canada works for 40 hours a week. That is 40 hours of their time dedicated to working for an organization and helping it grow and achieve its goals. In return they expect their employer to care of their wellbeing. One of the easiest and most effective ways for an organization to do this is by offering them an employee benefits plan. 

Employee benefits plans, also known as group benefits, employee insurance plans, or employer-sponsored plans, are offered by an organization to its full-time or part-time workers. In Canada, these plans are available in various forms, customized to meet the unique and diverse needs of an organization and its employees. 

In this blog, we’ve explained the different types of group insurance plans that are available. If you’re an employer, looking to attract and retain talent, or an employee who wants to understand group health coverage, this blog is for you!

How is a group health plan different from an individual health insurance plan? 

The main difference between a group health plan and an individual health plan is reflected in their respective names—the former covers a “group” of employees in an organization while the latter is purchased by an individual for personal health coverage.

Types of group health benefits plans 

In Canada, group health benefit plans typically fall into three main categories: employer-sponsored plans, benefits provided through professional associations, and government-sponsored benefits.

Employer-sponsored benefits

Employer-sponsored benefits are offered by an employer to the employees of an organization, forming a key part of an organization’s compensation package. Employers work with licensed experts, such as the ones at PolicyAdvisor, to obtain a group health plan that is tailored to meet the needs of the employee pool at the organization. 

Employer-sponsored benefits are typically part of an employee’s compensation package and are offered as a perk. This means that the employer pays most or all of the premium for the group health benefits being offered to their employees. Since these benefits are offered to a group of people, the premiums are lower as compared to individual plans since the insurer’s risk is distributed amongst the pool of employees. 

In some cases, the cost might be split between the employer and employees, especially if the latter chooses to add family members to their group health benefits plan. 

Why employees need to understand their work insurance policy

Key features of employer-sponsored plans

Some of the key features of employer-sponsored group benefits plans are:

✅ They can be paid for largely or in entirety by an employer

✅ Smaller organizations usually need 100% participation while larger ones will need 70%

✅ Employees can add family members to their group benefits for an additional cost 

❌ Employer-sponsored plans are typically not portable and only last for the term of employment

❌ Employer-sponsored plans have limited customization

❌ Some organizations might exclude part-time workers or employees on unpaid leave from these plans

Know more about how group health insurance works

Professional association benefits

Professional associations are organizations that offer networking opportunities to a group of people from a certain industry or profession. These associations include financial institutions, retiree organizations, college and university alumni groups, and clubs. 

Professional associations offer standardized group benefits to their members and their families. Similar to employee benefits, every member can choose to get coverage for health & dental, vision, prescription medication, and paramedical services. The premiums can either be paid directly by the members or deducted from their membership fees. 

Depending on the preference of the association, they might also offer life insurance, disability insurance, and accidental death and dismemberment (AD&D) insurance. For example, an armed forces or army veterans association might choose to offer life, disability, and AD&D insurance to its members while an advocacy group for a trade  association might not. 

Since a group of people are being insured under professional association benefits, the premiums are going to be lower and the plans will be customizable. It is beneficial to work with licensed experts when figuring out the best group benefits for a professional association. 

Key features of professional association benefits

Professional association benefits are a great way to increase and retain members of an organization. Some of the key features of these benefits include:

✅ Highly customizable plans, tailored based on the association’s member composition

✅ Lower premiums since the insurer’s risk is spread

✅ Group benefits extended to family members and loved ones 

❌ There is no portability with coverage which ends when a membership expires or is stopped

Provincial health care plans vs employee benefits plans 

The Canadian government provides healthcare to all its citizens. So the question that arises is: why are group benefits plans even necessary? It’s because provincial health care plans typically cover essential medical needs such as emergency healthcare and other basic medical care that includes surgeries and doctor visits. Employee insurance plans, on the other hand, provide wider, more extensive supplementary medical coverage. 

Importance of group benefits plans

Group health benefits or employee insurance plans are crucial to attract and retain talent. For professional associations, they work as an added benefit for the members. The different types of group benefits are important because:

A group health insurance is a type of health coverage typically offered by an employer or organization to a “group” of people—the employees or members of the organization. Group health insurance is typically cheaper for members of the insured group as compared to separate individual plans since the insurer’s risk is spread across a large number of participating members of an organization. It is an important part of an employee benefits program and employers should know how group health insurance works in Canada. 

Whether you’re an employer who is looking to offer group health insurance to your employees in Canada or someone who is simply curious about how an employee benefits plan works in Canada, this blog is for you! 

What is group health insurance? 

Group health insurance, also known as a group plan or employer-sponsored coverage, is a type of health insurance that an employer purchases and offers to its employees and their dependents. This group of people is accordingly covered under a single policy, offering benefits such as dental and vision care, hospitalization, prescription drugs, and other healthcare services. 

Employers or organizations usually negotiate the terms of the insurance policy and may subsidize part or all of the premium costs for their employees or members. Group health insurance is typically offered to all full-time or part-time workers as part of an employee benefits program. 

How is group health insurance different from individual plans?

While group health insurance is purchased by an employer and covers the employees of an organization, an individual health insurance plan, as the name suggests, is purchased independently by an individual for their own needs. Individual health insurance plans, also known as personal health insurance or private medical insurance, vary based on the individual’s age, medical history, and lifestyle (whether they’re smokers etc.). 

Benefits of group plans for employers

Offering group health benefits is an effective way to promote employee well-being and morale. It also:

✅ Helps organizations attract and retain talent 

✅ Can be written off as a business expense, hence saving tax for the organization

✅ Encourages employees to seek preventative care, promoting a more healthier and productive workforce

✅ Depending on the location of the organization, offering health insurance coverage to employees may be required by law. Providing group health insurance ensures compliance with applicable regulations

Group health benefits for employees

With a group health insurance plan in Canada, employees also get:

✅Access to a wider range of medical services like dental care, vision care, prescription medication, emergency travel, life insurance, etc.that are not covered under provincial plans

✅ Lower premiums as compared to other individual plans

✅ The option to add family members and current and future dependents to their policy

✅Coverage for pre-existing medical conditions

✅Incentives for preventive care and wellness programs, motivating employees to adopt healthier lifestyles 

How does group health insurance work in Canada? 

Group health insurance in Canada provides employees with access to comprehensive healthcare coverage beyond what is provided by the provincial healthcare system. Most group health insurance policies in Canada typically work in the following way:

1. Employer sponsorship: Employers choose a plan they want to offer to their employees. The employer negotiates the terms of the insurance policy with an insurance provider and may subsidize part of the premium costs for their employees. Within the plan, the employer can choose to add various types of benefits such as  health, dental, vision and prescription drug coverage, plus optional access to life insurance, disability and family assistance plans.
2. Employee enrolment: Employees can choose to enroll in or decline a group health insurance plan during the specified annual enrollment period. They have the option to choose from a few plan options and coverage levels. To mitigate risk across a larger group and prevent adverse selection, most insurers require a minimum 70% participation. 
3. Premium payments: The premiums are typically split between the employer and employees. Employers pay directly to the insurance company and deduct the employee’s contribution through payroll. 
4. Access to dependents: Employees can add family members and current and future dependents to the group health insurance plan at an additional cost
5. Employee usage: Employees can thereafter claim on the benefits as needed. Pharmacies, dentists, as well as health and vision practitioners directly bill the insurance company for covered expenses
6. Annual renewal: Employers work with the insurance company for annual renewal and repricing of the insurance contracts
7. Administration: The administration of group health insurance plans can vary. Some employers choose to manage the plans themselves, while others may contract with insurance companies or third-party administrators to handle claims processing, customer service, and other administrative tasks.

Group health insurance is cheaper than individual policies. This is simply because of the higher number of participants in the group health insurance plan, making it one of the most affordable health care policies available in Canada. One of the key implications of group health insurance is that healthier individuals effectively subsidize the costs of those who require more medical care.

What do employee benefits cover?

Group health policies and employee benefits, although distinct, are often used interchangeably. A group health insurance plan is part of an employee benefits package, offered by employers to their employees. While group health insurance is a significant component of employee benefits, it is not the only one. Other common employee benefits may include life insurance, disability insurance, paid time off (such as vacation days and sick leave), wellness programs, and more.

Depending on the plan an employer chooses, group employee benefits typically include a variety of health and other non-medical benefits.

How can I enroll in group health benefits?

Once hired, you need to enroll in the group health insurance plan within a deadline. If this deadline is missed, you might have to wait until the annual enrollment window is open. Typically, a new employee who joins after the enrollment period is over has to wait for a period of 30-90 days before they can get group health benefits. This period is designed to ensure a degree of commitment from the employee to the employer before benefit enrollment.

Some group health insurance plans offer supplemental benefits like dental and vision care. During the enrollment process, you can choose any additional benefits you might want and add your family members and/or dependents.

Who pays for group health insurance?

Different organizations have different rules when it comes to paying group health insurance premiums. Generally, there are three ways in which the premiums for group health insurance are paid. These are: 

1. Employer-sponsored plans: The employer pays the entire cost of the group health benefits plan and the employee is not expected to contribute.
2. Cost sharing with employees: An employer and their employees split the premium costs at a predefined rate. Commonly used splits are50 percent each or 70 percent by the employer and 30 percent by the employee. These arrangements can differ depending on the specific plan and the agreements between the employer and their employees.
3. Employee add-on costs: If employees want to add dependents or get an advanced plan with additional benefits, they have the option to pay the extra premium

How much do group health plans cost?

The cost of a group health plan varies depending on the type of package an employer purchases with options such as basic, advanced, premium offering different levels of coverage. Each package offers different coverage and depending on who is covered, the premiums can vary. For small businesses, a benefits plan can cost about 5-15 percent of the total payroll on an annual basis. 

In the following table, we’ve included representative average premium costs for a group health insurance plan based on who is covered, the plan type, and coverage options: 

In an ideal workplace today, mental health support is becoming increasingly important for employees. It’s a lifeline for moments when deadlines loom large and stress levels soar. But what does this support really include? It includes assistance programs, access to medical professionals, rehabilitation, disability support, etc.

In this article, we’ll give you an overview of how employee benefits cover mental health and why it is important.

The impact of poor mental health in a workplace

According to the Canadian Mental Health Association (CMHA), every week, around 500,000 Canadians can’t work because of poor mental health and 38% have taken time off work in the last five years because of mental health issues like stress, anxiety, and depression.

It’s not just individuals who suffer; the Canadian economy loses billions every year, employers feel the pinch, and youngsters are often hit the hardest, with most feeling burned out. This is when offering mental health support as an employee benefit becomes more crucial than ever.

So, whether it’s providing support for remote workers feeling isolated or helping employees resume work, employers need to take action to create a healthier workplace for everyone.

How do employers in Canada offer their employees mental health support?

So, what does mental health support look like in employee benefits packages? Here are some of the benefits that employers in Canada offer to their employees:

What can you, as an employee do to assess if you’re getting adequate mental health support at your workplace?

It’s alright to feel confused when you’re faced with endless pages of a policy that you don’t understand too well. However, you can always check if the mental health benefits offered at your workplace are sufficient for your needs. 

Take a good look at your existing benefits to see what you have and don’t. Does your policy include therapy sessions? Are there any apps that help with stress management or offer well-being support? Do you have access to any pre-recorded therapy sessions that you can resort to if you don’t have a therapist on call?

If not, consider requesting your employer through the human resources department to offer you these benefits.

How much does it cost to include mental health benefits in a group plan?

For instance, Sarah, a marketing analyst at a mid-sized company in Toronto had been feeling increasingly anxious, struggling to work and maintain a healthy work-life balance. After consulting with a mental health professional, she was diagnosed with severe anxiety.

Her employer’s benefits package includes mental health support, offering a median coverage of $750 annually. However, as her treatment progressed, Sarah realized that she needs more sessions than her benefits offer.

Now, if Sarah opts for 8 therapy sessions annually, she would face an additional out-of-pocket expense of $450 per year. If she chooses 20 sessions annually, her out-of-pocket expense would increase to $2,250 per year. While Sarah’s employee benefits plan won’t eliminate these expenses, it will significantly reduce the financial burden on her.

Want to choose the best group health plan with mental health benefits? Speak to our experts!

At PolicyAdvisor, our licensed experts will give you honest, unbiased advice that puts your needs first. So, if you’re looking for an insurer that will prioritize your employees’ mental health and give you a sustainable group health plan, speak to us today!