How to Build a Competitive Employee Benefits Package in 2025 (Canada Guide)

Key Takeaways

• A competitive employee benefits package is crucial for attracting and retaining top Canadian talent in 2025.
• Employees now expect more than just salary—flexibility, financial wellness, and mental health support are must-haves.
• Paycheque advances, like those offered by Swift Wellness, are a cost-effective way to boost employee satisfaction and reduce turnover.
• Tailoring your benefits to your team’s needs and staying compliant with Canadian regulations is essential.
• This guide includes real Canadian cost examples, actionable steps, and practical tips for building a standout benefits package.

Introduction

The competition for talent in Canada has never been fiercer. In 2025, offering a standard benefits package just isn’t enough to keep your best people engaged or loyal. Employees are looking for more—flexibility, financial security, and support for their overall well-being.

If you want to attract and retain top talent, you need to build a benefits package that stands out. The good news? You don’t have to break the bank to do it.

In this guide, you’ll learn exactly what Canadian employees want, how much it costs, and how to design a benefits package that works for your business and your team.

Plus, we’ll show you how innovative perks like paycheque advances from Swift Wellness can make a real difference.

Why Employee Benefits Matter More Than Ever in 2025

The world of work has changed dramatically since the pandemic. Employees are rethinking what matters most, and employers are under pressure to deliver more than just a paycheque.

In fact, a 2024 survey by Canadian HR Reporter found that 60% of Canadians would switch jobs for better benefits—even if the salary stayed the same.

Why? Because benefits are about more than perks. They’re about security, well-being, and feeling valued. A strong benefits package can:

• Reduce turnover by up to 30% (source: Benefits Canada, 2024)
• Boost productivity by 20% or more
• Strengthen your employer brand and help you stand out in a crowded market

In 2025, the most successful Canadian companies are those that invest in their people—not just with pay, but with meaningful, flexible, and innovative benefits.

Core Components of a Competitive Benefits Package

Every great benefits package starts with the basics. Here’s what Canadian employees expect in 2025—and what it typically costs.

Health & Dental Insurance

Health and dental coverage remains the foundation of any benefits package. In Canada, the average cost per employee is 2,000–2,000–3,000 per year. This usually includes:

• Prescription drug coverage
• Dental care (cleanings, fillings, etc.)
• Vision care
• Paramedical services (chiropractor, physiotherapy, etc.)
• Virtual healthcare (now standard in most plans)

Retirement Savings Plans

Retirement security is a top concern, especially as more Canadians worry about the rising cost of living. Most competitive packages include:

• RRSP matching: Employers typically match 3-5% of salary, averaging $2,000 per employee per year.
• Group pension plans: Less common, but growing in popularity.

Paid Time Off

Time away from work is more important than ever. In 2025, most Canadian employers offer:

• Vacation: Minimum 2-3 weeks (varies by province)
• Sick days: 5-10 days per year
• Personal days: 2-5 days per year
• Some are moving toward unlimited PTO or “flex days” to attract top talent.

Flexible Work Arrangements

Remote and hybrid work are here to stay. In 2025, flexibility is a must-have, not a nice-to-have. Options include:

• Remote or hybrid work schedules
• Compressed workweeks (e.g., four 10-hour days)
• Flexible start and end times

Typical Benefits & Average Canadian Costs (2025)

Emerging Benefits: What Top Canadian Employers Offer

To truly stand out, you need to go beyond the basics. Here’s what leading Canadian employers are adding to their benefits packages in 2025.

Financial Wellness Programs

Financial stress is the #1 cause of distraction at work. Innovative companies are tackling this head-on with:

• Paycheque advances: Services like Swift Wellness let employees access their earned wages before payday. This is a game-changer for reducing financial stress and turnover—at no cost to the employer.
• Budgeting tools and financial education: Online workshops, one-on-one coaching, and digital resources.

Mental Health Support

Mental health is no longer a taboo topic. In 2025, top employers offer:

• Employee Assistance Programs (EAPs): Confidential counseling and support.
• Virtual therapy: Covered by most health plans.
• Wellness stipends: 500–500–1,000 per year for fitness, mindfulness apps, or wellness retreats.

Family-Friendly Perks

Supporting families is a major differentiator. Consider:

• Parental leave top-ups: Supplementing government benefits for new parents.
• Childcare support: Subsidies, on-site daycare, or partnerships with local providers.
• Flexible scheduling: To accommodate school pickups, appointments, and family needs.

Learning & Development

Investing in your team’s growth pays off. Popular options include:

• Tuition reimbursement: Up to $2,000 per year for courses or certifications.
• Online learning platforms: Access to LinkedIn Learning, Coursera, etc.
• Mentorship programs: Pairing junior and senior staff for career development.

Call-out Box: Pro Tip

Pro Tip:
Offering paycheque advances through Swift Wellness can reduce financial stress and turnover—at no cost to your business. Employees love the flexibility, and you’ll see the benefits in engagement and retention.

How to Design a Benefits Package That Fits Your Team

No two workforces are the same. Here’s how to create a package that truly meets your employees’ needs.

Survey Your Employees

Start by asking your team what matters most. Use anonymous surveys or focus groups to gather honest feedback. You might be surprised—sometimes, small perks make a big difference.

Consider Demographics

• Gen Z values flexibility, mental health, and social impact.
• Millennials want financial wellness, career growth, and work-life balance.
• Gen X and Boomers prioritize retirement security and health coverage.

Tailor your package to your team’s unique mix.

Stay Compliant

Canadian benefits are regulated at both the federal and provincial levels. Make sure your package meets or exceeds minimum standards for:

• Vacation and paid leave
• Statutory holidays
• Health and safety requirements

Benchmark Against Competitors

Research what similar companies in your industry and region are offering. Tools like Glassdoor, LinkedIn, and industry surveys can help you stay competitive.

Actionable Tips: Step-by-Step Guide to Building Your 2025 Benefits Package

Ready to get started? Here’s a simple, step-by-step process:

• Assess Your Budget

• Calculate your total benefits budget per employee.
• Consider both fixed costs (insurance, RRSP) and variable costs (wellness stipends, paycheque advances).

• Survey Your Team

• Use anonymous surveys to identify top priorities.
• Ask about current satisfaction and desired new benefits.

• Research Providers

• Compare costs and features for health, dental, and retirement plans.
• Look for providers that offer bundled services or digital platforms.

• Mix Core & Emerging Benefits

• Combine must-haves (health, dental, RRSP) with innovative perks (paycheque advances, mental health support).
• Consider low-cost, high-impact options like flexible work and wellness stipends.

• Communicate Clearly

• Use onboarding sessions, employee handbooks, and regular info sessions to explain benefits.
• Make sure employees know how to access and use their benefits.

• Review Annually

• Gather feedback and adjust your package each year.
• Stay up to date with new trends and regulations.

Quick Reference: Must-Have Benefits in 2025

• Health & dental insurance
• RRSP matching or pension plan
• Paid time off (vacation, sick, personal days)
• Flexible work arrangements
• Financial wellness (e.g., paycheque advance)
• Mental health support
• Family-friendly perks (parental leave, childcare)
• Learning & development opportunities

Real Canadian Scenarios: What Works in 2025

Example 1: Tech Startup in Toronto

A 30-person tech company wanted to attract top developers. They added:

• Unlimited PTO
• RRSP matching at 4%
• Paycheque advances via Swift Wellness
• $1,000 annual wellness stipend

Result: Turnover dropped by 25% in one year, and job applications doubled.

Example 2: Retail Chain in Vancouver

A national retailer with high hourly staff turnover introduced:

• Flexible scheduling
• Paycheque advances (Swift Wellness)
• Mental health EAP
• Tuition reimbursement for part-time staff

Result: Employee satisfaction scores rose by 30%, and absenteeism fell by 15%.

Example 3: Manufacturing Firm in Calgary

A manufacturing company focused on retention for skilled trades. They offered:

• Health & dental with virtual care
• RRSP matching at 5%
• Parental leave top-ups
• On-site fitness classes

Result: Retention improved, and the company was named a “Top Employer” in Alberta.

Conclusion

Building a competitive employee benefits package is essential for attracting and retaining top Canadian talent.

By combining core benefits with innovative perks like paycheque advances from Swift Wellness, you can support your team’s well-being and boost your business’s success.

Remember to tailor your package to your workforce, communicate clearly, and review your offerings regularly.

Ready to upgrade your benefits?
Explore how Swift Wellness can help you offer financial wellness solutions that make a real difference for your employees—at no cost to your business.