Offering group benefits in Canada has become a standard for attracting and retaining talent—but not all benefits are treated equally under employment laws or insurance regulations. While many employers provide health and dental coverage, they often ask:
Which group benefits are mandatory, and which are optional?
Understanding the distinction between mandatory benefits and voluntary (or optional) group benefits helps Canadian businesses stay compliant, manage costs, and offer a well-rounded package to employees. This guide dives into the core differences, legal expectations, and practical implications for companies across Ontario, British Columbia, Alberta, and Quebec.
If you’re reviewing or building your company’s benefits program, this blog will serve as a strategic foundation, and aligned with the real needs of employers and HR teams.
In Canada, there are certain benefits employers are required to provide under federal and provincial employment standards. These aren't typically part of a group insurance plan but form the foundation of statutory employment benefits.
Employers must contribute to CPP/QPP for all eligible employees. This provides retirement income, disability benefits, and survivor benefits.
Both employers and employees must contribute. EI supports workers who are:
Mandatory in every province, this covers employees in case of workplace injuries or illness.
Employers must provide paid vacation, statutory holidays, and leave entitlements as per provincial rules.
These benefits are required by law, not optional—and they are not part of voluntary group insurance programs.
Beyond what's legally required, optional group benefits refer to employer-sponsored plans that offer extended health, dental, vision, life insurance, and more. These are not required by law but are key to staying competitive in hiring and retention.
This replaces a portion of the employee’s salary in case of illness or injury that prevents them from working. While common in most mid- to large-sized benefit plans, it is not legally required in most provinces.
These provide financial support to the employee’s family in case of death or serious injury. Many employers add this as a low-cost way to enhance coverage.
Mental health has become a priority, and many plans now include:
Employers offer tax-efficient flexibility with HSAs for eligible medical expenses and WSAs for wellness-related spending (e.g., gym memberships, ergonomic furniture, meditation apps).
While the law only requires a few core contributions, most businesses provide additional voluntary benefits to:
Your benefits strategy should depend on:
No. These are optional and not mandated by law. However, they are highly valued by employees and commonly included in employer-sponsored group plans.
No, but most companies do to remain competitive. In sectors like tech, finance, and professional services, offering no benefits is seen as a red flag by candidates.
No. These are employer-funded tools to provide flexibility. They’re growing in popularity because they allow employers to control costs while giving employees choice.
No. But it's increasingly considered a must-have for protecting employees against unexpected income loss due to illness or injury.
A well-structured plan balances legal requirements, cost control, and employee value.
GoKlaim provides a platform that simplifies group benefits and spending accounts for employers across Canada. Whether you're offering core health and dental insurance, or flexible HSAs and WSAs, GoKlaim helps:
For businesses in Toronto, Vancouver, Calgary, Montreal, and beyond, GoKlaim ensures your plan is compliant, flexible, and built to attract top talent.
Understanding the difference between mandatory and optional group benefits allows employers to build smarter, more cost-effective plans. With GoKlaim, you can offer employee benefits that are fully compliant, flexible, and aligned with what today’s workforce actually wants.
