The better the benefits, the more inclined prospective employees will be to accept a job offer. Some benefits employees want most are paid time off, a flexible work schedule, employer health insurance, and life insurance.
While employers are as generous as they can be in providing benefits, even the most comprehensive employee benefits plan may not be enough to protect you or your family. Regardless of your age or season of life, it is wise to consider the full scope of your needs and cover any gaps in coverage by purchasing supplemental insurance.
Benefits Employees Are Entitled to in Canada
Overall, Canadian workers have more rights and protections than workers in the United States. Provinces and territories may have slightly different laws for work benefits. Nonetheless, all full-time employees in Canada are eligible for certain employee benefits, including the following:
Paid time off – Federal law entitles employees to a minimum of two weeks of paid time off for any reason for employees with at least one year of employment. Employees are also entitled to three weeks after five years and four weeks after 10 years. In addition, some employers offer unlimited paid time off as long as employees take at least the minimum.
Canada Pension Plan and Quebec Pension Plan – Employers and employees contribute to a mandated federal pension plan. Quebec residents have a separate pension plan. Workers can start collecting pension payments at age 60.
Minimum wage – The minimum wage varies by province or territory in Canada. For example, Saskatchewan has the lowest minimum wage at $13 per hour, and Nunavut has the highest minimum wage at $16 per hour. Overtime rates vary by location.
Flexible working hours – Workers can request different working hours once they have worked for an employer for six months. Employers can refuse the request, but workers can fight the denial if the flexible hours would improve their work-life balance and the change would not affect their job duties.
Employees may take paid or unpaid leave for various reasons, including:
- Personal leave – Paid for three days
- Family violence leave – Up to 10 days with five days paid
- Medical leave – Up to 17 weeks unpaid for certain medical issues
- Compassionate care leave – Up to 28 weeks unpaid to care for a family member
- Critical illness leave – Up to 37 weeks per child to care for a critically ill child and up to 17 weeks for a critically ill adult
- Leave for child disappearance – Up to 52 weeks of protected leave without pay if their child is missing. If the child is deceased, parents may take up to 104 weeks.
- Leave for court appearances – Time needed to participate on a jury or serve as a witness
- Holiday pay – For certain public holidays, which vary by province, starting on the first day of employment
- Bereavement leave – Up to five days with three days paid
- Private health insurance – Employers may offer private health insurance plans and dental and vision insurance.
- Long-term disability insurance – Employers may optionally offer long-term disability plans.
- Healthcare spending accounts – Employers may offer healthcare spending accounts (HSAs), and the funds are tax-free.
- Retirement savings accounts – Some employers may offer additional retirement savings plans in addition to the mandatory pension plans. The most common plan is the Registered Retirement Savings Plan.
- Health savings account – Funds can be used to pay for medical expenses such as medications, vision services, dental care, full-time home care, medical supplies, ambulance services, and diagnostic and rehabilitation services that are not covered by traditional healthcare plans.
- Life insurance – Employers may voluntarily offer group life insurance to their employees.
Employee Benefits: Planning for Life Insurance and Retirement Savings
While employers offer coverage through work, Canadians may not be able to rely entirely on their work benefits to carry them through retirement.
Canadians may save for retirement by investing in one or more of the following savings plans:
- Registered Retirement Savings Plans (RRSPs) – Money is tax-free until you withdraw it.
- Tax-Free Savings Accounts (TSFAs) – Holds a variety of investment products that grow on a tax-free basis. Interest, capital gains, and dividends are not taxed either, and you can withdraw from the fund without it being taxed.
- Registered Disability Savings Plans (RDSPs) – Allows people with disabilities to save up to $200,000 within their lifetimes. Contributions to the plan are not taxed. The government may also contribute to the plan, which does not count toward the lifetime limit for contributions.
- Other personal investments – Savings accounts, annuities, stocks, or bonds.
- Additional life insurance – Whole or term life insurance you purchase on your own. These policies are also tax-free for your beneficiaries.
Additional life insurance is a benefit you can provide for yourself and your loved ones to cover any gaps and fully protect your family. For example, a life insurance policy provides a death benefit for your family if you die, and a whole life insurance policy can do much more during your retirement.
While a group life insurance policy protects you for all your working years, the coverage ceases once you leave the company. On the other hand, a term life insurance policy will provide a death benefit for your family for the length of the term stated on the policy.
With a separate whole life insurance policy, you are getting life insurance for your entire life. Moreover, the premium never goes up despite changes in your age or health.
Your whole life insurance policy can work for you in the following ways:
- Borrow from the cash value
- Withdraw the cash value and take it as income
- Pay the premium for the policy
Employees can plan better for the future by considering the full scope of insurance and benefits they may need for their lifetimes, including the benefits they purchase outside of work.
Final Thoughts
While many Canadian employers are liberal with employee benefits, the benefits only last as long as you are employed with the company. The rest of your life is longer than the years you spend working, and it is essential to plan for your future wisely.
To explore your options for life insurance to protect your family, contact one of our licensed life insurance agents at Hometown Life Insurance at 289-606-0103. Call us today!
