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- Employee benefits packages are increasingly popular among small businesses due to their potential for cost savings, tax benefits, and enhanced competitiveness with larger firms in terms of employee offerings.
- Insurance providers like Blue Cross and SunLife present flexible benefit options that cater specifically to the needs of small businesses, ensuring both comprehensive coverage and effective cost management.
- Customizable plans that accommodate diverse employee requirements and financial situations contribute to greater satisfaction and perceived value.
- Regularly evaluating benefit packages is essential to remain competitive and responsive to evolving business demands.
- To be eligible for employee benefits, small businesses typically need a minimum of two employees, with varying tax implications depending on the types of benefits provided.
- What are employee benefits for small business?
- What are some common employee benefits offered by small businesses in Canada?
- Which companies offer the best group health plans for small businesses?
- Top small business group insurance companies
- Medavie Blue Cross
- Equitable Life
- Canada Life
- Sun Life
- Empire Life
- Manulife
- Green Shield Canada
- Desjardins
- Group health companies cost comparison
- How much does a small business employee benefits package cost in Canada?
- Who pays for group health benefits in small businesses?
- How to choose the best employee benefits plan for small businesses in Canada?
- Frequently Asked Questions
Managing a small business is not an easy task. Between managing operations, juggling budgets, and building a stellar team, you already have a lot on your plate. But here’s the thing—keeping your best employees around takes more than just fun perks.
A recent survey found that 73% of employees consider health benefits an essential factor when deciding to stay with a company. In 2024, the expectations for benefits packages have evolved beyond basic offerings, with employees seeking comprehensive health coverage, retirement plans, and wellness initiatives.
Our blog gives insight into the best small business employee benefits companies in Canada to stay competitive and support the workforce.
What are employee benefits for small businesses?
Small business employee benefits packages offer a wide range of health and wellness benefits, retirement savings to professional training programs that are not covered by provisional plans. These packages encompass a wide range of offerings designed to support the overall well-being and professional growth of employees. Some employers may provide Employee Assistance Programs (EAPs), Health Spending Accounts (HSAs), and various wellness benefits.
Below are some of the most common types of group benefits offered:
Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.
What are some common employee benefits offered by small businesses in Canada?
Common employee benefits offered by small businesses in Canada include:
- Health and dental insurance
- Vision care
- Life insurance
- Disability benefits
- Retirement savings plans (such as RRSPs)
- Paid time off
Some businesses also offer wellness programs, mental health support, and flexible work arrangements as part of their benefits packages.
Which are the best small business employee benefits companies in Canada?
Blue Cross, Sun Life, Desjardins, Equitable Life of Canada, Green Shield, Canada Life, and Empire Life are some of the best companies offering employee benefits in Canada. Refer to the table below to see the strengths of each company and our ratings.
| Company | Best for… | Rating |
| Blue Cross | Travel coverage | 5/5 |
| Equitable | Standardized plan designs | 5/5 |
| Canada Life | Extensive nationwide coverage | 5/5 |
| Sun Life | High dental and vision coverage | 4.5/5 |
| Empire Life | Price stability | 4.5/5 |
| Manulife | Innovative and flexible plans | 4.5/5 |
| GreenShield | Affordability and flexibility | 4/5 |
| Desjardins | Paramedical coverage (physiotherapy, massage, chiropractors) | 4/5 |
Top small business group insurance companies
1. Blue Cross
Overview: Medavie Blue Cross three plans Entry, Essential, and Enhanced that are designed for businesses with at least two employees and have been operational for a minimum of six months. Eligible individuals include Canadian residents under 75, with full-time employees working at least 20 hours per week.
Medavie Blue Cross emphasizes member well-being through robust plans that include no waiting periods for active employees. Their core benefits include life, accidental death and dismemberment, extended health coverage, along with dental and vision care. They also have additional benefits like health spending accounts, personal spending accounts and long-term disability.
PolicyAdvisor Rating: 5/5
What they cover
Core benefits:
- Basic and dependent life insurance coverage
- Accidental death and dismemberment
- Extended healthcare
- Prescription drugs
- Dental care
- Worldwide travel insurance
Additional benefits:
- Long-term disability
- Health spending account
- Personal wellness account
What we like:
- Their HealthConnected plan includes a Health Risk Assessment and a robust Wellness Portal
- With BluAdvantage, members can save up to 20% on medical, health, and wellness expenses
- Their Connected Care service provides access to cutting-edge digital health solutions
- Their 360° Total Care program offers Health Coaching and Chronic Disease Management for conditions like asthma, diabetes, hypertension, obesity, and more
- The super-fast online enrolment process takes only a few minutes and is signed electronically
- Comprehensive coverage for Cognitive Behavioural Therapy, along with live, online, and text-based counseling
2. Equitable Life
Overview: Equitable offers group benefits that really stand out for businesses. Their plans can cover everything from dental and vision care to life insurance and even mental health support. Their health coverage includes up to 80% for prescription drugs and paramedical services like physiotherapy, chiropractic, and massage therapy. Employees also get access to dental plans covering up to 100% of basic services, along with mental health support.
PolicyAdvisor Rating: 5/5
What they cover:
- Vision
- Hospital accommodation
- Paramedical practitioners
- Disability management
- Healthcare spending account
- Life accident and critical illness
- EZBenefits for small business (A mix of life, health and dental coverage)
- Dental care
- Taxable Spending Account (TSA)
What we like:
- 24/7 access to medical professionals via Virtual Healthcare (Dialogue).
- Counseling services through phone, web, or in-person via the Employee and Family Assistance Program (Homewood Health).
- Online wellness resources for health and financial challenges (Homeweb).
- Self-guided mental health support using Cognitive Behavioural Therapy.
3. Canada Life
Overview: Canada Life’s group benefits plan for small businesses, known as Freedom at Work, offers tailored benefits and savings packages for businesses with up to 75 employees. It covers essentials like prescription drugs, dental, vision, paramedical services, and disability. The plan is affordable, typically costing around 1-5% of payroll, and helps businesses attract and retain top talent while supporting employees’ health and financial well-being.
PolicyAdvisor Rating: 5/5
What they cover:
- Life and accident insurance
- Critical illness
- Disability management program
- Prescription drugs
- Dental care
- Health care spending accounts
What we like:
- Provide flexible options that fit your organization.
- A dedicated service team with in-depth knowledge of your specific benefits plan.
- Comprehensive digital experience for submitting and tracking claims, along with personalized notifications about your benefits.
- Access to digital tools for health information, participate in individual wellness challenges, and connect with a virtual health coach.
4. Sun Life
Overview: Sun Life’s, SunAdvantage group benefits plan is designed for small businesses with 3 to 49 employees, offering a customizable and affordable benefits package. The coverage amount for the plan ranges from $25,000-$50,000. Their standard coverage includes life insurance, dependent life insurance and accidental death and dismemberment insurance. While the additional options include dental care, health spending account, short and long-term disability and more.
To be eligible the plan requires permanent employees if they actively work at least 20 hours per week; temporary employees working at least 20 hours per week, for a minimum of 12 months. They have a compliance support which ensures legal requirements are met, making Sun Life a valuable partner in protecting and empowering small business workforces.
PolicyAdvisor Rating: 4.5/5
What they cover
Standard coverage
- Life insurance
- Dependent life insurance
- Accidental death and dismemberment (AD&D) insurance
Additional options:
- Short-term disability and long-term disability
- Extended health care
- Dental care
- Health spending account
- Employee assistance program
- Stress management and well being
- Critical illness insurance
What we like:
- Flexible benefit plans tailored to meet employee needs while staying within budget.
- Clear, easy-to-understand communications to help employees maximize their benefits from day one.
- A comprehensive range of insurance products designed to help small businesses achieve long-term financial and health security.
- Fast claims processing with direct deposits into employees’ bank accounts within 24 to 48 hours for approved claims.
- User-friendly administrative tools like sponsor kits, a dedicated website, and toll-free access to a personalized customer service administrator.
5. Empire Life
Overview: Empire Life offers flexible group benefits designed to support the well-being of employees and their families. Their plans include a range of health, dental, life, and disability coverage options, customizable to fit your company’s unique needs.
With a strong focus on affordability and ease of administration, Empire Life provides valuable tools like online benefits management, helping employers streamline processes. Plus, employees can enjoy reliable access to health services, making it a comprehensive solution for businesses looking to prioritize employee care.
PolicyAdvisor Rating: 4.5/5
What they cover:
- Accidental death and dismemberment coverage (AD&D)
- Life insurance (basic and dependent)
- Critical illness insurance
- Extended healthcare (Paramedical, drug, vision, travel emergency assistance)
- Dental
- Employee Assistance Program (EAP): Assist Now
- Telemedicine
What we like:
- Offers unique and flexible solutions, such as a $7,500 drug pooling plan and incidental health expenses
- Continually evolving with digital connectivity and innovation
- Known for their personal touch and commitment to customer service
- Their cost-effective innovative and flexible products such as mental health navigator and teladoc services
- Their Retirement and Savings Tool helps assess whether you’re on track to reach your savings goals and effectively plan for retirement
- Quick claim submissions with Equitable EZClaim via secure web portal or mobile app.Provides long-term price stability in health and dental benefits.
6. Manulife
Overview: Manulife’s group benefits are a great option for businesses looking to offer comprehensive health and wellness coverage to their employees. They provide a range of services, including health, dental, vision, life insurance, disability and critical illness coverage.
Their health plans can cover up to 80% of prescription drug costs and offer $350 annually for paramedical services like physiotherapy. With flexible options, Manulife makes it easy to customize a benefits package that fits your team’s needs perfectly.
PolicyAdvisor Rating: 4.5/5
What they cover:
Core benefits:
- Prescription drugs
- Vision
- Dental
- Healthcare spending account
- Basic accidental & dismemberment insurance
- Employee & family assistance program
- Paramedical practitioners
Additional benefits:
- Optional life insurance
- Long-term (mandatory) enhanced long-term with COLA (optional)
- Optional accidental & dismemberment insurance
What we like:
- Provides centralized and easy access to all of Manulife’s pharmacy-related resources and programs including industry-leading drug lookup tools.
- Allows employees to use web-enabled devices to easily submit claims, review recent claims/claim details.
- Specialty Drug Care Program that manages specialty drugs to save costs and improve health outcomes
- DrugWatch, a rigorous oversight program designed to ensure plan sponsors are getting value for the dollars they spend as drug costs increase.
7. GreenShield
Overview: GreenShield offers the Honeybee Select group benefits plan for small businesses with fewer than 25 employees. This digital solution provides essential coverage options, including health, dental, and travel insurance, along with mental health support from Inkblot Therapy.
Employers can choose from three standardized plan designs (Plan 1, Plan 2, Plan 3), with a guaranteed quote available within 24 hours. The plan also includes add-on allowance accounts for customizable coverage options, making it an innovative solution for small businesses new to employee benefits.
PolicyAdvisor Rating: 4/5
What they cover:
- Pet insurance (Pet grooming, Pet food)
- Health Assist ZONE plans (Routine medical and dental expenses, emergency medical travel protection)
- Health and dental insurance
- Vacations, volunteer work, adventure & sports activities
- Fitness, sports & equipment benefits
- Travel insurance
- Claims management assistance
- Charitable donation and charitable leave expenses
What we like:
- Customizable plans that align with your company’s needs, with scalable pricing to grow with your organization.
- Health Care Spending Accounts (HCSA) allow for employee-directed spending without premiums.
- Transparent “pay for what you use” model through their Administration Services Only (ASO) feature.
- Lifestyle benefits for modern workplaces, like fitness and wellness programs.
8. Desjardins
Overview: Desjardins’ customizable solution, PerformPlus, is designed for companies with 3 to 49 employees, providing options such as life, disability, extended healthcare, and dental care insurance. Their PerformPlus plan generally ranges from $420 to $580 per month per employee, depending on the specifics of the coverage.
Plan is available for small businesses employing permanent staff working at least 10 hours per week, as well as temporary employees on fixed contracts of 35 hours per week or with one year of service. Whether you’re looking to enhance employee well-being, increase satisfaction, or attract top talent, their group insurance plan supports the health of both your employees and your organization.
PolicyAdvisor Rating: 4/5
What they cover
- Life insurance
- Accidental death and dismemberment insurance
- Critical illness insurance
- Health insurance
- Health Spending Account (HSA) and wellness account
- Coverage for expats and temporary residents
- Gender affirmation surgery and procedures
- Dental care
- Travel insurance and trip cancellation insurance
- Short and long-term disability insurance
- Vision care options
What we like:
- Their Health is Cool 360° online platform offers reliable health information, prevention tips, and treatment advice
- They have a Health Risk Assessment in place that identifies organizational health risks and provides personalized reports to employees
- The Health PACT grants employees access to licensed healthcare professionals for early chronic illness intervention
- Their Assistance Programs provide professional support for employees and managers during difficult times
- They provide Insurance Conversion options to allow employees to switch to Health Track Insurance® when leaving or retiring.
- They have tools to control drug costs, including a cost simulator
- Gender affirmation coverage includes surgeries and treatments not covered by public health insurance, plus a workplace support kit
- The Omni mobile app allows employees to submit claims, access wellness resources, and manage retirement plans on their devices
- IntelliFlex automates employee enrollment and streamlines plan management for easier administration
Group health companies cost comparison
| Category | Blue Cross | Desjardins | Equitable | Empire Life | Green Shield | Sun Life | Manulife | Canada Life |
| Health | ||||||||
| Drug maximum | – Entry: $3,000
-Essential: $5,000 -Enhanced: $20,000 |
An amount of your choice between $2,000 and $15,000 per insured per year, in increments of $1,000 | -Bronze: $5,000/year
-Silver- $25,000/year. -Gold: $100,000/year -Platinum: $100,000/year |
Varied by plans | -$3,000/person
-$10,000/person |
Vary depending on the drug
formulary selected |
$2,000 per year – the maximum you pay annually. Coverage then increases to 100% | Varies |
| Drug coinsurance | 80% | 80% | 80% | 80% | 80% | 50% to 100% | 100% | 100% |
| Paramedical services | Varies | Varies | -Bronze: No coverage.
-Silver: $300/practitioner/year -Gold: $500/practitioner/year -Platinum: $500/practitioner/year |
$500 | -$300/practitioner -$500/practitioner | $100 to $1,000, or $1,250 combined | $350 maximum per calendar year for each practitioner | Varies |
| Vision care (frame lenses and eye exams) | – Entry: No coverage
– Essential: $200 per 24 months for frames and lenses -Enhanced: $300 per 24 months |
Maximum: $100 to $500 in increments of $25, in any 12-month period | No coverage in bronze and Silver.
-Gold: $200/year -Platinum: $250/year |
$200 every 24 months | – $150/24 months/person
– $250/24 months/person |
$75 to $500 | $200 per 24 months | -$200 every 24 months -$250 every 24 months |
| Vision coinsurance | 80% | Varies | 100% | 80% | 80-100% | 100% | 70-100% | |
| Dental | ||||||||
| Basic dental maximum | – Entry: $1,000
-Essential: $1,500 -Enhanced:$1,500 |
From $500-
$4,000, or unlimited |
No coverage in bronze
-Silver: $1,500/year -Gold: $2,000/year -Platinum: $2,500/year |
$1500 | -$750/person – $15,00/person | $2,500 | $3,000 per person, per calendar year | Varies based on the province of your residence |
| Basic dental coinsurance | 80% | Varies | 70-90% | 80% | 80% | 50% to 80% | 80% | 80% |
| Recall exam | Three choices: Every 6, 9 or 12 months | Varies | Varies | 1 every 6 months | Varies | Varies | Yes | |
| Pooled benefits (as requested) | ||||||||
| Life insurance | Entry: $25,000
– Essential and enhanced: $50,000 |
–Minimum $10,000
–Maximum $1,000,000 (in combination with plan member’s optional life insurance) |
-Bronze and silver: $25,000
– Gold: $50,000 – Platinum: $75,000 |
$30,000 | Yes | -$20,000 to $750,000 | Up to $1,000,000 | 100% of annual salary to a maximum of $1,250,000 |
| Accidental death and dismemberment (AD&D) | – Entry: $25,000
– Essential and Enhanced: $50,000 |
Maximum $1,000,000 | Same as life insurance | $30,000 | Up to $10,000 for repatriation and rehabilitation | Up to $50,000 | Same as life insurance | |
| Short-term disability benefits | Varies | Up to $2,000 (without evidence of insurability) | Varies | Varies | Up to $1750 per week (20+ lives) | Depends on the plan | 100% of your weekly salary for the first week; 75% for the next 15 weeks | |
| Long-term disability benefits | – Entry: No coverage
-Essential and Enhanced- $4,000 |
Depending on group size, up to $14,000 (with evidence of insurability) | Varies | Varies | Up to $12,000 per month | $12,000 | $25,000 | |
| Added benefits | ||||||||
| Hospitalization | – Essential: No coverage.
– Essential and enhanced: $200 per day for semi-private and private rooms |
Semi-private | 100% coverage for semi-private accommodation | Semi-private or private | 100% coverage for semi-private or private room | Semi-private room | ||
| Health Spending Account (HSA) | Yearly allocation choices of $200, $500 or $700 | $250 per plan member | Plan sponsor choice | Varies based on admin fees | As requested | Same number of credits for all employees | -Full-time employees: $100/year
-Part-time employees: $50/year |
Varies based on admin fees |
| Travel Insurance | -$5,000,000 per person, per incident in all 3 plans. | – Medical emergency expenses: 100% up to a lifetime maximum of $5 million | Varies based on the travel benefits | Not specified; varies by plan | Yes | Varies | Varies | Varies |
How much does a small business employee benefits package cost in Canada?
Employee benefits packages for small businesses typically cost between $80 and $350 per employee per month. However, the costs can greatly vary depending on the number of employees, the type of coverage offered, employee demographics, and other factors.
Average monthly cost per employee for a small business group health plan
| Plan Type | Average cost of coverage per employee per month |
| Basic | $80/mo |
| Standard | $92/mo |
| Enhanced | $135/mo |
*Please note, these are average costs for one employee per month, pricing may vary based on factors like company demographics, employee’s age, health status, etc.
Who pays for group health benefits in small businesses?
In small businesses, group health benefits are typically shared between the employer and employees. The employer usually pays a significant portion of the premium, while employees contribute a part of the cost through payroll deductions.
The employer’s contribution is often designed to make the benefits affordable and competitive. The exact cost-sharing arrangement can vary depending on the business’s budget and the specific health insurance plan.
In some cases, employers may choose to cover the full premium as an added benefit to attract and retain employees. The contribution structure and coverage options are customizable based on the business’s needs.
How can small businesses provide employee benefits while managing costs?
Small businesses can manage employee benefits costs by choosing cost-effective health plans, offering a mix of fully insured and self-funded options, and sharing premium costs with employees.
They can also explore wellness programs, which can help reduce long-term healthcare expenses, and look for group benefit plans that provide comprehensive coverage at competitive rates.
How to choose the best employee benefits plan for small businesses in Canada?
In general, choosing the best employee benefits plan for small businesses in Canada involves several critical steps. You need to start by assessing employee requirements through surveys to understand what they value most in a benefits package. Once you have this information, set a budget that reflects what your organization can afford while ensuring financial stability.
Consider offering flexible benefits plans, which allow employees to select the benefits that resonate with them, fostering satisfaction and retention. Prioritize core benefits like health insurance and retirement plans, as these are often essential to employees.
At PolicyAdvisor, our insurance experts are here to help you find the best employee benefit plans. They’ll guide you through coverage options, premiums, and additional benefits you can offer your employees. Trust us to find the best fit for your business! Schedule a call with our team today!
Frequently asked questions
Who is eligible for employee benefits in Canada?
Eligibility for employee benefits typically requires employees to be Canadian residents or temporarily working abroad, provided their Government Pension Plan and Health Insurance remain active. Employers may also set specific criteria, such as length of service or job classification, to determine benefit eligibility within their organizations.
How much do employees pay for benefits in Canada?
In Canada, employees typically contribute between $1,500 and $4,000 annually towards their benefits. These contributions can vary based on the specific benefits package offered by the employer, including health, dental, and other coverage options, influencing the overall cost for both the employee and the organization.
What benefits do employees value most in Canada?
In Canada, employees highly value health and dental coverage, retirement plans, and work-life balance. Additionally, paid time off for new parents is a significant benefit. These offerings enhance overall job satisfaction and contribute to a positive workplace culture, making them essential for attracting and retaining talent.
What are the mandatory benefits for employees in Canada?
In Canada, mandatory benefits for employees include the Canadian Pension Plan (CPP), Employment Insurance (EI), and workers’ compensation. These benefits ensure financial security for workers during retirement, provide support during periods of unemployment, and offer protection in case of workplace injuries, forming a critical safety net for all employees.
Can an employer force you to take benefits in Canada?
In Canada, employers cannot compel employees to accept benefits. However, they can require certain benefits as part of the employment package, particularly if outlined in the employment contract or collective agreements. This ensures clarity and consistency in the benefits offered while allowing employees to make informed choices.
Employee health benefits packages for small businesses in Canada emphasize that competitive offerings are essential for attracting and retaining talent. With many employees willing to switch jobs for better benefits, companies must provide comprehensive employee benefit plans that include health and dental insurance, retirement options, and mental health support.
