Group Benefits

Merit Pay Set at 3%

Canadian employers delivered merit pay that matched their projections from the previous year according to a new compensation survey by Mercer. The survey drew responses from 271 employers and increases were the same as in 2025. When merit increases also stood at 3.0% and total increases at 3.3%.

Total pay increases varied by industry with the top three sectors being life sciences topping all at 3.8% followed by financial services at 3.7% and retail & wholesale at 3.6%.

The survey found that individual performance remains the most widely used factor in determining salary increases with 88% stating increases were based on individual performance, 80% also factored in the relationship between an employee’s current salary and market value and 71% considered internal equity.

Canadian Employers Lose an Average of 31 Working Days Annually Due to Stress – Survey

The survey by One Picture on behalf of Xero Ltd., polled 300 Canadian employers with less than 200 employees and found they spend an average of nine hours per week feeling stressed, concerned or worried about their business.

Financial management is the greatest pressure point for 77% of business owners/executives. Loss of sleep is an issue as reported by 52% of respondents with 23% losing five or more hours a night.

However, 92% of respondents are taking steps to manage their stress with 52% turning to self-care, 44% focusing on exercise and 41% spending more time with family and friends.

Majority of Canadian Women Aged 35 to 55 Say Menopause Symptoms Impact Work – Survey

Nearly two-thirds of Canadian women in this age demographic indicate menopause symptoms impact their job performance while more than half report that time spent seeking care disrupts their work according to a new survey by GreenShield Canada.

The survey polled more than 1,000 women and found only 13% said their employer provides adequate hormonal health or menopause benefits. While nearly half (46%) waited at least a year for effective treatment after first noticing symptoms, 33% said they waited more than two years. Nearly 40% said they didn’t know where to seek menopause or hormonal health care while 26% didn’t initially recognize their symptoms as hormonal transition.

Many benefit plans are now including education on both the symptoms associated with menopause and a resource for treatment including through virtual care.

Specialty Drugs Continue to Drive Drug Spend – Report

More than a third of private drug plan spending now goes to specialty medicines even though just 2.1% of claimants use them.

According to Telus Health’s 2026 Drug Data Trends & National Benchmarks, which tracks 2025 claims experience across Canadian private plans, specialty drugs with annual treatment costs of at least $10,000 accounted for 33.9% of total eligible amounts in 2025, up from 32.7% in 2024 and 31.2% in 2023.

Western Canada has a lower share and Telus Health links Pharmacare and universal plans in British Columbia, Saskatchewan and Manitoba as the reason as they are the first payor once members satisfy deductibles.

The weight management category, classified as a lifestyle benefit that plan sponsors must opt into, recorded 104.0% growth in eligible amounts in 2024 and another 61.0% in 2025. Claims for these drugs increased by 90.1% and claimants by 59.7% in 2024 and then claims increased another 54.9% in 2025 and claimants by another 21.6%.

Health Canada has approved generic equivalents for some of these GLP drugs, such as Ozempic, and Telus Health expects further declines in private plan spending on drugs, like contraceptives, as more provinces sign on similar to British Columbia, Manitoba and Prince Edward Island. (refer to Government Plan Support under Legislative)

Group Savings

Effective Communications for Savings Plans – Survey

Based on the Benefits Canada Employee Savings Survey, 56% of plan members say email is the most effective way to communicate with them about their savings plans. The survey polled 500 Canadian plan members and found traditional mail at 18% was a distant second followed by an insurance company website at 17% and a financial advisor meeting arranged by an insurance company even lower at 14%.

Legislative

Government Plan Support for Drug Benefits

The province of British Columbia (B.C.) implemented the first phase of the National Pharmacare Act (Bill 64) on March 1, 2026. They join Manitoba and Prince Edward Island who have already implemented the first phase of their own programs and join Yukon as all four signed bilateral pharmacare agreements with the federal government last year.

The federal government agreed to provide universal coverage for many diabetic drugs and contraceptives during this first phase however, as B.C. already offers coverage for contraceptives through their provincial pharmacare program, the province is using that portion of the federal funding to cover menopausal hormone therapy.

On April 18, Health Canada approved a generic equivalent of the brand name drug Ozempic. As generic medications in Canada are typically priced 45 to 90% below their brand name equivalents, this new medication could result in material reductions in per claimant costs for benefit plans covering this type of medication.

Dental Fee Adjustments for 2026

The provincial and territorial dental associations have published their annual fee guides. Canadian insurance companies use these guides to establish reimbursement amounts for dental services and are also useful to plan sponsors when doing cost projections for the benefit policy year.

Province/Territory	Percentage Cost Increase		Effective Date
	Dentist	Denturist
Alberta	4.50%	3.00%	January 1
British Columbia	2.66%	10.00%	Feb. 1 – Dentist / Jan. 1 – Denturist
Manitoba	4.03%	2.00%	January 1
Quebec	3.40%	3.00%	January 1
Nova Scotia	3.54%	Varied	February 1
New Brunswick	2.70%	2.00%	Jan. 1 – Dentist / Feb. 1 – Denturist
NFLD/Labrador	3.80%	2.00%	January 1
N.W. Territories	4.16%	3.00%	January 1
Nunavut	4.16%	3.00%	January 1
Ontario	3.32%	3.32%	January 1
P.E. Island	3.09%	4.00%	January 1
Saskatchewan	2.14%	2.50%	January 1
Yukon	No Guide	5.00%	January 1