Group Benefits

Most Canadian Workers Dissatisfied with Employer’s benefit plan

Seventy per cent (70%) of employees state they’re dissatisfied with their current benefits plan according to a survey by Robert Walters Canada. The survey polled more than 500 employees which also found fifty-four per cent (54%) agreed the benefits their employer offers are a significant factor in their loyalty to their company and three-quarters (76%) said employee benefits are very important to them when considering a job offer.

Although nearly all respondents said they have medical/health and dental insurance, only thirty-five per cent (35%) felt fully informed on how to maximize the use of their benefits. Respondents most valued benefits were medical/health (95%) and Dental (85%).

Mental Health of Canadian Workers Continues to Decline

The COVID-19 pandemic took a significant toll on working Canadians and a recent study by Telus Health indicates that mental well-being in the Canadian workforce has continued to decline. Telus has been tracking the Mental Health Index since 2017 and, according to findings, between 2019 and 2020, the Index saw a significant decline in mental health in Canada.

The proportion of workers facing a mental health risk is at 37 per cent which is four per cent higher than the annual average in the last four years. The study found forty per cent of workers are worried about their financial situation, with 48 per cent most concerned about the cost of living and 25 per cent about debt.

Employers can support their workforce by promoting services available through an Employee Assistance Plan. While most employees view the plan as providing counselling, they also provide financial, legal, elder and childcare support. Employers can also train managers and workplace leaders to be champions of mental health by being inclusive, fostering team cohesion, showing empathy, demonstrating a sense of purpose and making timely decisions.

Drug Costs, Utilization Rates Are Rising

The findings in the GreenShield Canada 2024 Drug Trends Report are that drug costs are up 11 per cent year-over-year. The percentage of claimants for obesity drugs increased by 43 per cent while diabetes medications saw a 13 per cent increase in costs which accounted for 9 per cent of total drug costs in 2023.

The report also found since the onset of the coronavirus pandemic in 2020, there has been a 132 per cent increase in mental-health claims and a 50 per cent increase in claimants seeking mental-health-related medications.

Depression and anxiety medications were the second most claimed drug expenses in 2023 and the total costs for ADHD medication increased by 24 per cent with the number of claimants increasing by 20 per cent.

There are steps an employer can take to manage these costs by ensuring these Drugs are being used properly. For example, an analysis of semaglutide claims (which include Ozempic and Rybelsus) found 46 per cent of patients claimed this as their only diabetes treatment however treatment guidelines for diabetes recommend them as an add-on treatment to other diabetes medications. Introducing prior authorization can ensure the medication is being used appropriately.

Group Savings

New Plan Maximums

The annual contributions have been increased as follows:

• Money Purchase Pension Plan limit to $33,810 in 2025 from $32,490
• Registered Savings Plan limit to $32,490 in 2025 from $31,560
• Deferred Profit-Sharing Plan limit to $16,905 in 2025 from $16.245

Legislative

Federal Programs Increase Benefits & Rates

The 2025 Year’s Maximum Pensionable Earnings will be $71,300.00 up from $68,500 in 2024 and the basic exemption amount will remain at $3,500.00.

Contribution rates for Canada Pension Plan (CPP) for 2025 remain the same for employer and employee at 5.95% to a maximum $4,034.10 each which is up from $3,867.50 in 2024. The self-employed CPP contribution rate remains at 11.90% to a maximum $8,068.20 which is up from $7,735.00 in 2024.

The 2025 Year’s Additional Maximum Pensionable Earnings is $81,200.00 which is up from $73,200.00 in 2024. Pensionable earnings between $71,300.00 and $81,200.00 are subject to CPP2 contributions. Contribution rates for both employer and employee for 2025 will remain at 4.00% and the maximum contribution will be $396.00 each which is up from $188.00 in 2024. The self-employed CPP2 contribution rate will remain at 8.00% and the maximum contribution will be $792.00 which is up from $396.00 in 2024.

For Employment Insurance, the maximum insurable earnings is $65,700 in 2025 up from $63,200 in 2024. The maximum annual employee premium is $1,077.48 up from $1,049.12 in 2024 while the maximum annual employer contribution is $1,508.47 up from $1,468.77 in 2024.

Bill 229 Impacts Leaves

Bill 229 received Royal Assent on December 19, 2024. Among other changes, it introduces new:

• parental leave for employees who become parents through adoption or surrogacy
• long-term illness leave

For parental leave, the employee with at least 13 weeks of service would be entitled to an unpaid leave of 16 weeks.

For long-term illness leave, an employee with at least 13 consecutive weeks of service is entitled to unpaid leave of up to 27 weeks if they are unable to work due to a serious medical condition.

Some practical tips are:

• for Child Parental Leave, update the Employee Handbook & Leave policies to include this entitlement and train staff to recognize requests for this Leave to ensure compliance with notice and evidence requirements
• for Long-Term Illness Leave, review and align sick leave and accommodation procedures to align with this provision and create standardized process for collecting medical certificates while respecting privacy guidelines plus ensure re-integration plans are clear for employees returning from extended absences

Bill 68 and Medical Certificates

Bill 68 came into effect on January 1, 2025 to reduce the administrative burden of physicians but employers must be more careful when requesting documentary evidence to justify certain employee absences.

Employers may no longer request that employees provide a document justifying their absence for the first three (3) absences of less than three (3) consecutive days within a twelve (12) month period for the following reasons: sickness, an organ or tissue donation, an accident, domestic violence, sexual violence or criminal offence.

However, a few exceptions apply:

• if an employee is absent for one of the reasons above on more than three (3) occasions for three (3) consecutive days or less within a twelve (12) month period, the employer may request documentary evidence such as a medical certificate
• in cases where an absence lasts more than three (3) consecutive days for the reasons above, the employer may also request the employee provide documentary evidence such as a medical certificate