Group Benefits

Salary Adjustments for 2026

Canadian organizations plan to increase salaries by 3.11% for non-unionized workers for 2026, marking the third consecutive year of declining wage growth projections according to Telus Health’s 43^rd Annual Salary Projection Survey.

The report captured data from 375 Canadian organizations across various industries and found the salary adjustments varied by both province and industry.

Manitoba employers projected the largest average increase to base salaries (3.43%), followed by New Brunswick (3.25%) and Quebec (3.21%).

Across industries, employers in high technology (3.64%), oil & gas (3.58%) and life sciences (3.39%) estimated the largest average increases.

The survey emphasizes that successful employers pair fair base pay with comprehensive wellbeing strategies including mental health support and flexible work arrangements to attract and retain talent,

Opinions Vary on the the Benefits of Remote/Hybrid Work

Employers and employees remain divided over the merits of remote and hybrid working arrangements according to a new survey by Cisco Systems Inc.

The survey, which polled over 800 employees and more than 200 employers, found that 68% of Canadian employers have implemented a return-to-work mandate and just 30% believe their employees are more productive working from home. Only 11% of employers offer fully flexible work policies.

However, over half of employees maintain flexible workplaces are essential to productivity with 30% opting for remote and 26% for hybrid arrangements. The cost of commuting (44%) was the number one factor cited by employees influencing their preference for remote work.

When working in the office, in-person interaction was the most important factor driving both employers (60%) and employees (57%) to do so more frequently. When working in the office, employees said they prefer to focus on high-vale activities, including collaboration (92%) and brainstorming (86%).

Mental Health Remains a Challenge for Employers

According to a new survey by Peninsula Canada, just 24% of Canadian small- and medium-sized employers indicate they’ve seen an increase in employee absences due to mental-health issues over the last 12 months but 80% say they aren’t confident employees would disclose mental-health issues.

The survey, which polled more than 12,000 Canadian employers, found 66% don’t currently offer mental-health leave. Only 14% of Canadian employers said they offer mental-health training to managers or employees. While 23% of employers said they have an employee assistance program, only 2% of employers who have experienced mental-health issues over the last 12 months have sought support from it.

Communication on the resources available to employees and a willingness of employers and employees to speak about it are major steps in ensuring workplaces are healthy and happy.

Four Health Canada Approvals Expand Treatment Options

Health Canada has authorized four therapies across infectious disease, oncology and hematology broadening treatment for patients in multiple categories.

It is expected these new medicines will be available this year and include discussions with provincial programs as well as with private insurers.

The companies involved are Pfizer Canada, BioNTech SE, Bristol Myers Squibb Canadaand Bayer Inc.

Insurers Using New Tools to Crack Down on Benefits Fraud

During a panel discussion of Canadian insurers at the 2025 Toronto Benefits Summit, it was noted that 22% of plan sponsors have seen an uptick in benefits fraud either by plan members, service providers or organized crime.

Insurers are leveraging artificial intelligence and machine learning to track usage down to the provider or postal code level to identify anomalies in claim patterns. Many companies are boosting their communication efforts with plan sponsors and publishing the names of bad actors. This latter initiative, referred to as de-listing, is where an insurer disallows a certain practitioner, clinic, facility or medical supplier from claims processing or reimbursement.

The penalties are being reviewed as it is preferable to have a provider who has erred pay a fine and/or take a course rather than reducing access to providers for insureds and entire communities

Group Savings

Employee Savings Survey

A recent survey found that workplace savings plans that had traditionally focused on retirement have experienced a shift in recent years to support employees’ changing financial priorities.

Benefits Canada’s 2025 Employee Savings Survey found 73% of Canadian employees ranked paying for day-to-day expenses among their top three priorities followed by mortgage or rent (60%) then personal debt such as credit cards (50%). Just 13% said they’re confident in their employer sponsored pension plan.

According to the survey, 47% of employees indicated they would likely participate in a registered education savings plan, followed by first home savings account (41%) and a student loan repayment program (26%). Generation Z is withdrawing from their registered retirement savings plans at a greater rate than previous generations – 12% more than millennials and 42% more than gen X.

When it comes to the design of a group savings plan, the demographics of the group needs to be a big factor to ensure strong and continuing participation.

Legislative

Minimum Wage Increases

Effective October 1, 2025, five Canadian provinces implemented minimum wage increases.

• In Ontario, the minimum wage will increase from $17.20 to $17.60 per hour
• In Manitoba, it will increase from $15.80 to $16.00
• In Nova Scotia, the increase is from $15.70 to $16.50
• In Prince Edward Island, the increase was from $16.00 to $16.50
• In Saskatchewan, the minimum wage increased from $15.00 to $ 15.35 per hour

WSIB to Lower Premium rate for Ontario Businesses in 2026

The Workplace Safety and Insurance Board (WSIB) will reduce the average premium rate for Ontario businesses to $1.23 per $100 of insurable payroll in 2026, down from $1.25 in 2025.

According to the WSIB, this will be the seventh reduction since 2017.

Employment Insurance 2026 Adjustments

The federal government recently announced the annual adjustments to the Employment Insurance (EI) maximums and premium rates.

Region	Maximum Insurable Earnings	Rate per $100 of Insurable Earnings	Maximum Annual Contribution	Maximum EI Weekly Benefit
Quebec	$68,900	Employee $1.30 / Employer $1.82	Employee $895.70 / Employer $1,253.98	$729
Rest of Canada	$68,900	Employee $1.63 / Employer $2.28	Employee $1,123.07 / Employer $1,572.30	$729

For insured Short-Term Disability (STD) benefits, the plan design will be affected if the maximum benefit is based on the EI maximum.

If the insured STD plan or self-insured sick leave plan provides a maximum weekly benefit of less than the new EI weekly maximum of $729, then you may have to adjust the design of your plan in order for your plan to qualify for the EI premium reduction program.