Top 8+ Employee Benefits in Canada: Mandatory and Supplementary Perks

Learn why Canadian workers are often regarded as one of the world’s luckiest employee groups!

If you’re one of the lucky employees working in Canada, you’ll enjoy a range of amazing mandatory and supplementary employee benefits. From healthcare and retirement savings plans, to disability and death benefits, Canadian employers take care of their workers! In this blog post, we’ll take a look at the top 8 employee benefits in Canada. Keep reading to learn more about the great perks available to Canadian employees!

In this article

What are Employee Benefits?

Employee benefits are any type of perk or benefit that an employer provides to their employees, over and above their salary. These benefits can be either mandatory (e.g. employment insurance), or supplementary (e.g. retirement savings plans). In Canada, there are a few different types of employee benefits that employers are required to provide by law.

Employee Benefits in Canada

How much do Employee Benefit Cost in Canada?

The cost of employee benefits in Canada varies depending on the type and size of the company, as well as the province or territory in which they operate. However, according to a recent survey by Mercer, the average cost of employee benefits in Canada is $11,409 per year. This includes both mandatory and supplementary benefits.

What are the Most Popular Employee Benefits in Canada?

The most popular employee benefits in Canada are disability, retirement, death, and wellness programs. These four benefits are ranked in order of importance by Canadian employees. Other popular employee perks include virtual care, mental health training, and digital health and gym memberships.

What are the Best Employee Benefits in Canada?

The best employee benefits in Canada are those that offer the most value to employees. This can vary depending on an individual’s needs and preferences. However, some of the best employee benefits in Canada include pension plans, healthcare coverage, and paid time off (PTO).

Do Part-Time Employees get Employee Benefits?

In Canada, part-time employees are entitled to the same mandatory employee benefits as full-time employees. This includes things like employment insurance, pension plans, and parental leave. However, part-time employees may not be eligible for some supplementary benefits, such as retirement savings plans or health spending accounts.

How do benefits improve employee morale?

Employee benefits are a great way to improve employee morale. By offering perks and benefits above and beyond their salary, employers show that they value their employees and are committed to their well-being. This can lead to increased job satisfaction and loyalty, as well as improved productivity.

In addition to boosting morale, employee benefits are a great way to attract and retain top talent. In today’s competitive job market, employees are looking for companies that offer the best perks and benefits. By offering a comprehensive employee benefits package, employers can stay ahead of the competition and attract the best workers.

Top 10 Employee Benefits in Canada

Canadian employees are lucky to enjoy a range of amazing employee benefits. Here are the top ten employee benefits in Canada that are mandatory by law:

Mandatory Employee Benefits in Canada

#1. Pension Plans

Pension plans are a great way to save for retirement. In Canada, employers are required to provide their employees with a pension plan if they have 20 or more employees. The Canada Pension Plan (CPP) is the most common type of pension plan in Canada. Increases to CPP premiums are scheduled each year between 2019 and 2023, at which time both employer and employees will be contributing 5.95% up to the maximum, and an additional 4% on earnings between the maximum and an upper earning limit that is expected to be approximately C$79,400 in 2025. (Source: CRA Website).

The CPP is a government-sponsored pension plan that is available to all Canadian workers. Employees and employers both contribute to the CPP, and the benefits are paid out when employees retire.

In addition to the CPP, there are also a number of private pension plans available in Canada. These plans are typically offered by employers and are not mandatory. However, they can be a great way to supplement your retirement savings.

Related to the CPP is Old Age Security (OAS) which is a monthly pension paid to Canadians aged 65 and over. The OAS pension is funded by the Canadian government and is not based on contributions from employees or employers.

Those who are eligible for the OAS pension can also apply for the Guaranteed Income Supplement (GIS), which is an additional monthly benefit for low-income seniors.

#2. Employment Insurance

Employment insurance (EI) is a government-sponsored program that provides temporary financial assistance to unemployed workers. To be eligible for EI, workers must have lost their job through no fault of their own and be actively looking for work. Certain employees are exempt from this, like employees who make less than $3,500 a year. In return, employees get access to retirement pensions and survivors’ benefits for widows and children, as well as certain disability benefits.

EI benefits can be used to cover things like living expenses and retraining costs. They can also be used to help those who are taking care of sick family members or new parents who are on maternity or paternity leave.

In order to receive EI benefits, employees must be contributing to EI in bi-weekly or monthly pay check and must first apply for them when temporarily unemployed due to no fault of their own. They will then need to provide proof that they meet the eligibility requirements, such as a Record of Employment from their previous employer.

Once an employee has been approved for EI, they will receive benefits for a maximum of 26 weeks. The amount of the benefit is based on a percentage of the employee’s average insurable earnings, and is capped at $537 per week. Employment insurance is a great way for employees to stay afloat financially during tough times. It’s also a good way for employers to retain top talent during difficult periods. EI is just one of the many great employee benefits available in Canada. Next is Legislated Leaves.

Recommended: Employment Insurance in Canada.

#3. Legislated Leaves

There are a number of legislated leaves that employees in Canada are entitled to. The most common ones are maternity leave, paternity leave, and parental leave. These leaves allow new parents to take time off work to bond with their new child without having to worry about losing their job or income.

Maternity leave is a type of leave that is available to pregnant women. It allows them to take time off work before and after the birth of their child. The length of maternity leave varies from province to province, but is typically around 16 weeks.

Paternity leave is a type of leave that is available to fathers. It allows them to take time off work after the birth or adoption of their child. The length of paternity leave varies from province to province, but is typically around two weeks.

Parental leave is a type of leave that is available to both parents. It allows them to take time off work after the birth or adoption of their child. The length of parental leave varies from province to province, but is typically around 35 weeks.

These are just a few of the many types of leaves that are available to employees in Canada. Other types of leaves include compassionate leave, sick leave, and vacation leave. Each type of leave has its own eligibility requirements and benefits.

#4. PTO

PTO, or paid time off, is a benefit that allows employees to take time off from work without having to use their vacation days. PTO can be used for things like vacation, sick days, personal days, and mental health days.

PTO is a great benefit for employees because it allows them to take the time they need off work without having to worry about using up their vacation days. It also allows employees to take care of themselves and their families without having to worry about losing income.

PTO is a great way for employers to show their employees that they value their time and well-being. It’s also a great way to retain top talent and keep them happy and productive.

PTO is just one of the many great employee benefits available in Canada. Next is Retirement.

#5. Eye Exams

Eye exams are an important part of maintaining good health. They can help detect vision problems, eye diseases, and other health conditions.

Most provinces in Canada require employers to provide their employees with free or discounted eye exams. This benefit is typically available through Employee Health Plans.

Eye exams are a great way for employees to stay healthy and avoid potential vision problems. They’re also a great way for employers to show their employees that they care about their health and well-being.

Supplementary Employee Benefits in Canada

#6. Retirement

The next most important benefit for Canadian employees is retirement. A retirement savings plan allows employees to save money for their retirement years. There are a number of different types of retirement savings plans, such as RRSPs, TFSAs, and pensions.

Employees who have a retirement savings plan are more likely to retire comfortably than those who don’t. Retirement savings plans are a great way for employers to show their employees that they care about their future. They’re also a great way to attract and retain top talent.

#7. Death Benefits

The 7th most important benefit for Canadian employees is death benefits. Death benefits are a type of insurance that pays out a lump sum of money to the beneficiary in the event of the policyholder’s death.

Death benefits are an important part of financial security for families. They can help cover expenses like funeral costs, outstanding debts, and living expenses.

Death benefits are a great way for employers to show their employees that they care about their families and their financial security. They’re also a great way to attract and retain top talent.

#8. Healthcare

The next most important benefit for Canadian employees is healthcare. Healthcare benefits can include things like dental coverage, prescription drug coverage, and vision care.

Healthcare benefits are an important part of keeping employees healthy and productive. They’re also a great way for employers to show their employees that they care about their health and well-being. Healthcare benefits are a great way to attract and retain top talent.

According to available statistics, 91% of Canadian employers offer an extended health care benefit to supplement the government health insurance plan for salaried employees.

  • 77% of employers pay 100% of the premium.
  • 51% of employers offer extended health care to hourly workers.
  • 73% pay 100% of the premium.

Voluntary Employee Benefits in Canada

Voluntary benefits are employee benefits that are not required by law. They’re typically offered by employers as an incentive to attract and retain top talent. Some examples of voluntary benefits include retirement savings plans, health insurance, and life insurance.

Voluntary benefits are a great way for employers to show their employees that they care about their future. They’re also a great way to attract and retain top talent.

Some of the most popular voluntary employee benefits in Canada include:

  • Health Insurance
  • Dental Insurance
  • Life Insurance
  • Disability Insurance
  • Retirement Savings Plans
  • Employee Assistance Programs

Flexible Employee Benefits in Canada

Flexible employee benefits are benefits that can be customized to meet the needs of each individual employee. They’re a great way for employers to show their employees that they care about their unique needs and circumstances. Some examples of flexible employee benefits include flexible work hours, tele

Best 5 Employee Perks in Canada

Employee perks are benefits that are not required by law. They’re typically offered by employers as an incentive to attract and retain top talent. Some examples of employee perks include gym memberships, free food, and transportation subsidies.

Employee perks are a great way for employers to show their employees that they care about their health and well-being. They’re also a great way to attract and retain top talent.

Five (5) of the most popular employee perks in Canada include:

  1. Gym Memberships
  2. Free Food
  3. Transportation Subsidies
  4. Mental Health Training
  5. Digital Health Tools

Part-Time Employee Benefits in Canada

Part-time employees are typically entitled to the same benefits as full-time employees, with a few exceptions. For example, part-time employees may not be eligible for health insurance or retirement savings plans.

Part-time employee benefits are an important part of keeping employees healthy and productive. They’re also a great way for employers to show their employees that they care about their health and well-being. Part-time employee benefits are a great way to attract and retain top talent.

Some of the most popular part-time employee benefits in Canada include:

  • Health Insurance
  • Dental Insurance
  • Life Insurance
  • Disability Insurance
  • Retirement Savings Plans
  • Employee Assistance Programs
  • Virtual Care Services
  • Mental Health Training
  • Digital Health Tools

Emerging Employee Benefits in Canada

Emerging employee benefits are benefits that are not yet widely offered by employers, but are expected to become more popular in the future. Some examples of emerging employee benefits include virtual care services, mental health training, and digital health tools.

Emerging employee benefits are a great way for employers to show their employees that they care about their health and well-being. They’re also a great way to attract and retain top talent.

Some of the most popular emerging employee benefits in Canada include:

  • Virtual Care Services
  • Mental Health Training
  • Digital Health Tools

How to record employee benefits in Quickbooks

Recording employee benefits in QuickBooks is a simple process. First, you’ll need to create an Employee Benefits Liability account. To do this:

  1. Go to the Lists menu and click on Chart of Accounts.
  2. Next, click on the Account drop-down menu and select New.
  3. From there, select Other Current Liability from the Account Type drop-down menu and click Continue.
  4. Enter “Employee Benefits Liability” in the Name field and click Save & Close.
  5. Once you’ve created the Employee Benefits Liability account, you can begin recording employee benefits expenses in QuickBooks.

To record employee benefits expenses in QuickBooks, do this:

  1. Go to the Lists menu and click on Chart of Accounts.
  2. Next, click on the Accounts drop-down menu and select New.
  3. From there, select Other Current Liability from the Account Type drop-down menu and click Continue.
  4. Enter “Employee Benefits Expense” in the Name field and click Save & Close.

Do hourly employees get benefits in Canada?

Hourly employees are not typically eligible for benefits in Canada, with a few exceptions. For example, hourly employees who work 30 or more hours per week may be eligible for health insurance and retirement savings plans.

Hourly employees who are not eligible for benefits often find that their pay is lower than what they would earn if they were salaried employees. This is because salaried employees typically receive benefits that hourly employees do not.

In some cases, hourly employees may be able to negotiate for benefits such as health insurance or retirement savings plans. However, this is not always possible.

It’s important to remember that each employee’s situation is different. Some hourly employees may be eligible for benefits, while others may not. If you’re unsure whether or not you’re eligible for benefits, it’s best to speak to your employer.

Are tips considered employee benefits in Canada?

No, tips are not considered employee benefits in Canada. Tips are considered to be gratuities that are given to employees for their services.

While tips are not considered employee benefits, they are often used to supplement an employee’s income. For example, servers who work in restaurants typically earn a lower hourly wage than other employees. However, they often make up for this by receiving tips from customers.

Tips are not considered employee benefits because they are not mandatory. Employers are not required to provide tips to their employees. However, some employers may choose to do so as a way to show their appreciation for their employees’ hard work.

Do temporary full time employees get benefits?

No, temporary full time employees do not get benefits. This is because they are not considered to be permanent employees. Temporary full time employees are typically only employed for a set period of time, such as during the busy holiday season. Once their contract is up, they are no longer employed by the company.

This can be frustrating for temporary full time employees, as they often work the same hours as permanent employees but do not receive the same benefits. However, there are some companies that offer temporary full time employees a limited number of benefits, such as health insurance.

If you’re a temporary full time employee, it’s best to speak to your employer about your benefit options.

Conclusion

Employee benefits are an important part of keeping employees healthy and productive. They’re also a great way for employers to show their employees that they care about their health and well-being. Employee benefits are a great way to attract and retain top talent.

The most popular employee benefits in Canada include health insurance, dental insurance, life insurance, disability insurance, retirement savings plans, and employee assistance programs.

Emerging employee benefits such as virtual care services, mental health training, and digital health tools are expected to become more popular in the future.

Part-time employee benefits are an important part of keeping employees healthy and productive.

Employee perks such as gym memberships, free food, and transportation subsidies are a great way for employers to show their employees that they care about their health and well-being.