Does an Employer Have to Provide Health Insurance in Canada? What You Need to Know
.png){kind=small}
Does an employer have to provide health insurance?
The short answer is: no. Canadian employers don’t have to provide health insurance. Provincial plans cover essential care but offer little to no extended benefits (like dental and vision).
Although it isn’t mandatory, about 90% of employers provide some form of supplemental coverage.
This guide explains which benefits are legally required and how to fill coverage gaps if your workplace plan is limited—or nonexistent.
What are employee benefits?
Employee benefits in Canada are the benefits you receive on top of your wages. Some of these benefits are mandatory (like statutory holidays) and others are supplemental (like dental care and wellness memberships).
Here’s an example of an employee benefits plan.
Keep in mind: At some companies, eligibility for supplemental benefits depends on whether you work a certain number of hours a week (usually 20 to 30 hours) or pass a probationary period (usually 3 to 6 months).
However, all full-time employees and part-time workers are entitled to certain employee benefits in Canada.
What benefits are employees entitled to in Canada?
Mandatory employee benefits vary by province
Your Canadian province or territory determines a few of your mandatory employee benefits. This includes sick leave, how many paid statutory holidays you get, and how many weeks of paid vacation you can receive.
As an example, in British Columbia you’re entitled to 5 paid days and 3 unpaid days of sick leave after 90 days of employment. In Ontario, you’re entitled to 3 unpaid days after just 2 weeks of employment.
Check out these tables to find your area and your entitlements.
Sick leave by province
Vacation leave by province
Statutory holidays by province/territory
Federally regulated workers in Canada are subject to slightly different rules around leaves and holidays. If you are part of this 10% of the Canadian workforce, check with your Human Resources office to understand your situation.
Mandatory benefits are, well, mandatory! If you think you are being denied coverage to which you’re entitled, you can file a complaint against your company.
What are your options if you don’t get health benefits?
If you are among the many Canadians who do not receive health benefits through work, your options include government benefits and private plans. The best health insurance companies in Canada have insurance policies you can customize so you buy only what you need.
Government benefits
Basic health benefits in Canada include:
- Medically necessary services like check-ups and emergency surgeries
- Zero fees (paid for by your tax dollars)
However, government health benefits in Canada do not cover:
- Vision
- Dental
- Paramedical care
If you don’t have private coverage, expect to pay out of pocket for medical services like optometrist appointments, dental cleanings, massages, and other supplementary care.
Private health and dental plans
Private health and dental plans like the ones from PolicyMe can close gaps in coverage, such as:
- Diagnostic tests
- Eyeglasses
- Cavity fillings
- Chiropractors
- Mental health services
How to get health insurance if you aren’t covered at work
If you don’t have health insurance through work, here are 5 easy steps to buy a private policy through a health insurance company in Canada:
- Understand your current coverage: Compare your provincial coverage to your employer’s coverage. What’s already included? What’s missing?
- Add up the costs: Find out how much you’re spending right now on healthcare by reviewing your receipts and claims. Is there money left? How much?
- Consider gaps: Look for expenses you paid out-of-pocket, or that weren’t fully covered by a claim. How much money did you spend? Spread out over 12 months, what’s the monthly cost of your current gaps?
- Get health insurance quotes: Request pricing for plans that would cover your specific expenses. Are the premiums lower than what you would have paid out-of-pocket?
- Add up potential savings: Figure out what you’d be paying, what’s covered, and what the maximums are. If you’d had the plan last year, how much would you have paid and saved?
You can request quotes through PolicyMe, or speak with an advisor if you want personalized advice for your situation.
How much does private health insurance cost?
For an individual, private health insurance costs between $75 and $150 per month, on average.
However, exact pricing depends on your age, your location, and your level of coverage.
- Age: Older Canadians tend to pay more for private health insurance, especially people over 60.
- Location: Urban areas with a high cost of living tend to trigger higher premiums, like Ontario.
- Coverage: The more benefits you want (and the more people on your plan), the more you’ll pay.
When you’re reviewing pricing, pay attention to the premium amount, the co-pay, the deductible, and any coverage limits.
Group vs. personal health insurance
Group and personal health insurance are two ways you could get healthcare in Canada.
Group plans: These are available through your employer to cover a group of people (aka employees), and they make up 91% of health insurance coverage. Companies tailor group plans to their employees’ needs, and you can unlock some coverages and rates you might not be able to get on your own. Workers may be able to add partners and dependents for an extra cost.
Personal plans: These are individual policies for a single person or a single family. You purchase a personal health insurance plan in Canada on your own, outside of work.
Who needs private health insurance in Canada?
You may need private health insurance in Canada if:
- You’re self-employed
- You’re freelance
- Your routine healthcare costs exceed your current coverage
- You want certain benefits that aren’t covered already
Every household is different! Your must-have coverage (e.g., chiropractic) might be irrelevant to someone else.
Overall, private health insurance can do two things: offset routine costs and protect your finances in case of unexpected or high-cost health issues. The predictability of a set premium and guaranteed benefits can be a huge relief, especially if you’ve gone through the tumultuous or costly experience of not having the coverage you need.
Do employers have to provide group life insurance?
Canadian employers are not required to offer group life insurance to employees.
If you are offered this type of coverage, the payout is typically capped at 1-2x your annual salary upon your death. You and your employer contribute to the group life insurance premium.
Erik Heidebrecht is the customer service manager and licensed advisor at PolicyMe. Erik has a Bachelor of Business Administration from the University of Wilfrid Laurier University with a minor in Financial Mathematics. Erik has broad exposure to the personal finance world after working at Fidelity Investments Canada as well being an advisor with Sunlife Financial, one of Canada's largest individual insurance providers. Erik is now focused on taking that experience to improve the customer journey and provide the best advice to Canadians looking for life insurance.
Erik Heidebrecht is the customer service manager and licensed advisor at PolicyMe. Erik has a Bachelor of Business Administration from the University of Wilfrid Laurier University with a minor in Financial Mathematics. Erik has broad exposure to the personal finance world after working at Fidelity Investments Canada as well being an advisor with Sunlife Financial, one of Canada's largest individual insurance providers. Erik is now focused on taking that experience to improve the customer journey and provide the best advice to Canadians looking for life insurance.
“Group life insurance is a nice perk,” says life insurance advisor Erik Heidebrecht, “but it’s something to build on. It’s a good starting point, but usually not enough for most families.”
You may want to purchase additional life insurance, even if your employer offers optional group life insurance. This is true especially if you have a family, a mortgage or other debt.
What are your options if you don’t get life insurance through work?
If your company is one of the 50% that does not offer life insurance, you can still buy it on your own through PolicyMe.
Term life insurance in Canada is the best option for most Canadians. It pays out a lump sum death benefit if you pass away within the timeframe of your policy, and terms range between 10 and 30 years.
23 million Canadians own $5.7 trillion in life insurance coverage. If you have kids, if you own a business, if you have a mortgage, or if your partner depends on your income, life insurance can help protect the people you love.
FAQ: Employer health insurance in Canada
Our mission is to empower Canadians to make informed financial decisions. To achieve this, we have an expert editorial team that includes licensed insurance advisors and financial planners. We prioritize the best interests of Canadian families and won't endorse any product, company or financial strategy that we believe isn't suitable. Our educational guides are crafted by in-house experts, like licensed life insurance advisors. Before publication, we subject our research and advice to scrutiny and comprehensive revisions for accuracy and completeness.
Our mission is to empower Canadians to make informed financial decisions. To achieve this, we have an expert editorial team that includes licensed insurance advisors and financial planners. We prioritize the best interests of Canadian families and won't endorse any product, company or financial strategy that we believe isn't suitable. Our educational guides are crafted by in-house experts, like licensed life insurance advisors. Before publication, we subject our research and advice to scrutiny and comprehensive revisions for accuracy and completeness.