Group Benefits as an Alternative to Salary Increases

An attractive overall compensation package can help protect an employer’s most valuable asset: your employees. With government cutbacks and increasing drug, hospital and paramedical costs, giving your employees a pay increase isn't always the most cost-effective compensation method.

A raise in salary can cost you more than you think. Consider a three per cent increase on a $35,000
salary for an employee in Ontario, versus an equivalent premium allocation:

From the employer perspective:

As illustrated in the example below, it can cost you $44.66 more per employee to implement a three per cent salary increase than to provide group benefits:

From the employee perspective:

Having the company purchase benefits on behalf of employees increases purchasing power when federal and provincial income tax rates are taken into account, as seen in the following example: