What are group benefits? A simple guide for Canadian businesses figuring this out for the first time
If you’re hiring your first few employees, or you’ve outgrown that one-size-fits-none plan your broker sold you, you might be wondering what offering group benefits actually involves.
This guide is here to explain it clearly. Just a straight answer to: What are group benefits, how do they work in Canada, and what’s normal for companies like yours?
What are group benefits?
Group benefits are health and insurance plans you offer to your team. Instead of each person buying their own coverage, the company sets up one plan for everyone.
That makes things cheaper, simpler, and easier to manage.
The plan usually covers things like prescriptions, dental care, mental health support, and vision.
You pay part of the cost, and your employees pay the rest through payroll.
Who pays for what?
Most small companies cover at least half the monthly cost. Here’s what that often looks like:
- Company pays $100 to $200 per employee each month
- Employee pays $50 to $100 through payroll
- Total cost is usually between $150 and $300 per person per month
You can set the split based on your budget. If you want to attract and retain talent, it helps to be on the generous side.
What’s usually included?
Most plans include:
- Health: prescription drugs, virtual care, hospital coverage
- Dental: cleanings, fillings, basic procedures
- Vision: eye exams and some coverage for glasses or contacts
- Mental health: therapy and counselling sessions
- Paramedical: massage, physio, chiropractor
- Optional extras: life insurance, travel coverage, health spending accounts
Some teams add perks like fertility coverage or ClassPass. But if you’re just getting started, a solid health, dental, and mental health package goes a long way.
Why Offer Benefits?
It’s not legally required in Canada, but most growing teams choose to offer benefits because:
- Candidates expect them, especially in tech or professional roles
- It helps people stay, which saves you time and money
- It shows your team that you care about their health and stability
- It helps people stay healthy and reduces burnout or sick days
If you’re asking people to show up for your business every day, this is one way to show up for them too.
What Does a Typical Plan Look Like?
For a team of 10 to 50 people, you might see:
- 80% coverage on health and dental expenses
- $500 to $1,000 per year for mental health or therapy
- $250 every two years for glasses
- A few hundred dollars a year for physio or massage
- Monthly cost of around $150 to $250 per employee
This is enough to cover most day-to-day needs. You don’t have to go overboard to offer something meaningful.
What are other ways to offer benefits?
Not every company needs a full traditional plan. Some teams start with more flexible options, especially if they want to give employees choice or keep costs predictable.
Here are a few levers you can use:
Health Spending Accounts (HSAs)
- You set a fixed annual budget (e.g. $500–$2,000 per employee)
- Employees use that money on health-related expenses they choose
- Covers a wide range of things: therapy, dental, glasses, fertility, acupuncture, etc.
- No monthly premiums, just pay what employees actually use
- Simple to administer and easy to explain
This is a great option if you want to offer support without locking into a fixed monthly cost. It’s also a good complement to a lighter insurance plan.
Wellness Spending Accounts (WSAs)
- Same idea as an HSA, but for lifestyle and wellness perks
- Can be used for gym memberships, meditation apps, nutritionists, etc.
- These aren’t tax-free, but they’re flexible and well-loved
Hybrid Models
Many companies now combine:
- A base insurance plan (for drugs, dental, mental health)
- Plus an HSA or WSA for flexibility
That way your team gets good coverage, and still has room to personalize their care.
Add-ons that matter
- Mental health coverage: Not all plans include this by default. Make sure it’s there.
- Virtual care: Quick access to doctors online. High impact, low cost.
- Family coverage: Optional but meaningful if you’re hiring people with dependents.
What If Your Current Plan Feels… Off?
If any of these sound familiar, it might be worth taking a second look:
- You still fill out paper forms
- Reimbursements take weeks
- Your team doesn’t know what’s covered
- You don’t either
- Your broker only emails you once a year
- The cost jumped at renewal and no one can explain why
You’re not stuck. There are better options now, and switching doesn’t have to be complicated.
Want Someone to Take a Look?
If you already have a plan, we’re happy to give you a second opinion. We’ll tell you what’s working, what could be better, and what you might be overpaying for.
If you’re starting from scratch, we’ll help you figure out a setup that fits your budget and doesn’t take over your calendar.
No pressure. No consult calls unless you want one. Just clear advice from people who’ve seen a lot of plans like yours.
Published on 31/07/2025
Author
Alan
Canada
Updated on
31 July 2025
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