How much are workplace benefits worth?

More Canadians have medical or dental benefits through their job according to a 2024 report from Statistics Canada. That’s 66.8% of full-time or permanent workers who now have access to these benefits—a steady increase since 2021.

As employers compete for talent, benefits are becoming more than just a perk. They’re a key part of compensation, helping improve retention, job satisfaction, and overall well-being. But what makes a benefits package truly competitive and how much are these perks worth, both financially and in usefulness?

What are workplace benefits?

Workplace benefits are non-wage compensation offered to full-time, usually permanent employees in addition to their salaries. These perks can make a significant difference in both financial security and overall well-being.

“If it’s not part of the package, then that’s a red flag,” says Allison Venditti, HR professional and founder of Moms at Work. “The employer-employee relationship...is supposed to come with more things that tie you to working there. You should get more perks and benefits.”

In other words, a benefits package isn’t just a nice-to-have, it’s a signal of how seriously an employer invests in its people.

Some of the most common types of workplace benefits include:

• Health insurance (medical, dental, vision): Helps cover costs for doctor visits, prescriptions, dental, and eye care. It often includes part of the cost of glasses or contact lenses.
• Retirement plans (RRSP matching): Employer adds money to your retirement savings when you contribute.
• Life & disability insurance: Provides income or payout if you can’t work or pass away.
• Wellness programs: Perks like gym discounts, fitness classes, or health resources.
• Mental health support: Access to therapy, counseling, or mental health services or app memberships.
• Flexible work arrangements: Options for remote work, flexible hours, or compressed weeks.

Read more: What do accident benefits in Ontario cover?

What makes a good benefits package? 

A benefits package has both mandatory and optional components, says Imran Choudhary, Director, Group Benefits at RW Group Benefits. Mandatory benefits refer to those required by law, such as employment insurance and pension contributions. Optional benefits, like life insurance and accidental death and dismemberment (AD&D), aren’t legally required but are commonly included in employer-sponsored group plans.

Now, what makes a package good depends on the needs of the employees it’s meant to serve, but Venditti says companies should consider flexibility in their plans. She says that there are four generations currently in the workforce (Boomers, Gen X, Millennials and Gen Z) and each has different needs.

Some, Venditti says, are mental health, retirement and flexible health insurance. 

“People want to use Eastern medicine, they want to use a chiropractor, they want to use what they want to use,” she says.

“Flexibility is exactly what people are [asking for] across generations,” she says. Age and life stage also inform employees’ needs. "Apart from the obvious, the people who are older are more focused on the immediacy of retirement versus somebody who's in their twenties... So instead of age, I would say life stage.”

Read next: Do you need life insurance? A primer for Canadians

The cost of employee benefits: What they're worth

Choudhary says the cost of employee benefits in Canada ranges from 15% to 30% of an employee's total compensation package. This would include benefits like health insurance, dental, vision, RSP matching, life and disability insurance, wellness programs, mental health like therapy costs and flexible work. He notes that flexible work tends to be more intangible, so that can be hard to assign a dollar amount. 

When it comes to paying out of pocket versus employer costs, the group benefits tend to be cheaper for the employee.

“You're likely splitting the cost with your employer,” he says. 

The most common split is 80-20, where the employer covers 80% of the cost while the remaining is paid by the employee. 

Comparing the cost of coverage between employer-sponsored and out-of-pocket

How do employer-sponsored benefits stack up against paying out of pocket? Below is a breakdown of common benefits and what they typically cost—whether covered by your employer or paid on your own.

Keep in mind that there are different plans out there with different tiers of coverage which come at their own costs. Plus, the exact prices may differ if you’re with a small-to-medium company or a large company that can afford a more robust plan. 

Health insurance

Employer-provided benefits could run your employer anywhere from $150 to $350 per employee per month depending on the size of the business. The bigger the business, the lower the cost due to scale. Plus, bigger companies can negotiate better rates.

If you’re paying out of pocket, that could run you anywhere from $80 for basic coverage to $250 a month for broader coverage like a private hospital room. 

Dental and vision

Out-of-pocket dental costs are very high. As of 2021, the average cost was $461 and in 2025, a cleaning costs anywhere between $130 to $430 depending on the clinic, x-rays and other treatments. Employee benefits can cover from $1,500 to $2,500 a year per employee (minus the deductible). 

The cost of eyecare can range from moderately priced to very expensive, especially if you like designer frames or want high-density, high-index lenses. In that case, you’re looking at nearly $1,000, which does not include the eye exam which can cost between $60 to $250 depending on the tests and the severity of your vision. 

However, it’s easier than ever to find cheaper frames from eyecare specialists that also throw in a free eye exam with the purchase of a pair of glasses that won’t exceed your vision coverage. 

With employee benefits, you’ll get between $150 to $350 every two years. 

RRSP matching

If a company offers RRSP matching, then it’s like free money as you’re not the only one putting money into the account. Some companies will match you up to a certain percentage per year or will match you to the total amount you contribute to your RRSP. 

Life and disability insurance

Choudhary says that employer-sponsored plans—often referred to as mandatory because they’re automatically included in some workplace benefit packages—typically offer between $10,000 to $100,000 in coverage per employee, provided there are no pre-existing medical conditions. He notes that employees don’t own these plans, so they can’t take them with them if they leave the company.

“The life insurance that you pay for whatever through a plan might be the same as going to get a cup of coffee a month or two cups, depending on the age of the group and the amount of coverage,” he says. 

Paying for life or disability insurance yourself can cost anywhere from $10 to nearly $500 per month, depending on factors like your age, health status, pre-existing conditions, whether you choose term or whole life insurance, any added coverage like critical illness or disability, and the size of your policy. You may also need to complete a medical exam to qualify for coverage.

Read more: What does life insurance cover in Canada?

Wellness programs and mental health costs

Wellness programs and mental health services might be bundled into one pool of funds where employees can use them as they see fit within the company’s guidelines. Plans can range between $1,000 to $5,000 per employee per year. 

If you were to pay out of pocket, here’s what typical wellness and mental health services might cost:

Gym Membership

• Basic: $10–$30/month
• Boutique/Luxury: $500–$1,000/month
• Annual total: $120–$6,000

Registered Massage Therapist (RMT)

• $90–$130 per 60-minute session
• Monthly: $1,080–$1,560 (plus tax)

Physiotherapist

• $95–$125 per session
• Monthly: $1,140–$1,500

Psychotherapist

• $100–$250 per hour
• Monthly: $1,200–$3,000

Estimated annual total: $3,540 to $12,060

Is the cost of employee benefits worth it?

Benefits offer value to both employers and employees. For employers, they provide a cost-effective way to support their workforce, helping to boost retention and reduce turnover.

 For employees, benefits deliver immediate coverage for health, dental, vision, and wellness needs while also contributing to long-term well-being. Access to these services reduces stress and financial burden, allowing employees to focus on their health without worrying about out-of-pocket expenses.

However, not all benefits plans are created equal. While they’re a significant part of total compensation, it’s important to take the time to review what’s actually included in your plan. 

Consider what you truly want and need, how much value the benefits add to your overall compensation, and what costs you might still have to cover out of pocket. Those expenses can add up quickly—so a closer look can help you make more informed decisions.