Average cost per employee for health and dental in Canada (2026)

Last updated: Jan 2026

At‑a‑glance: Most Canadian employer extended health + dental plans land between $80–$350 per employee per month (PEPM), depending on plan richness, workforce mix, and insurer underwriting. (Source: PolicyAdvisor small‑group benchmarking, 2025.)

PEPM × headcount calculator (above the fold)

• Formula: Employer monthly spend = PEPM × eligible headcount × employer share (%)

• Scope: Extended Health Care (EHC) + Dental only (typical drugs, paramedicals, vision, basic/major dental). Excludes life, AD&D, STD/LTD, retirement, and taxable wellness.

Notes:

• Ranges benchmark small to mid‑size Canadian groups; very rich designs and very small groups can exceed the upper bound (e.g., $300–$400 PEPM cited for richer health+dental).

• Dental‑only benchmarks in Canada can run ~$20–$35 PEPM for bare‑bones group dental, showing how richer EHC drives most of the total.

Introduction and scope

This page gives a practical 2026 budgeting range for Canadian employer extended health and dental (EHC + Dental) on a per‑employee‑per‑month (PEPM) basis. It triangulates broker market quotes and public benchmarks. Cost levels vary by plan design (drug maxima, coinsurance, annual dental maximums), demographics, claims experience, and insurer trend loads. Trend context is Canadian; U.S. figures are not used for budgeting here. For full methods, see the Methodology 2025 and 2026 Cost pages.

2026 Canada outlook: what to model for trend

• Extended health and dental cost trend in Canada is expected to remain elevated in 2026, with overall benefits plan inflation around ~7% (use a 5%–10% planning band). Dental fee guide increases returned closer to long‑run norms in 2025, but insurers are still loading higher trend factors in some renewals.

• Insurer surveys point to persistent upward pressure from prescription drugs (especially specialty/GLP‑1s) and higher utilization of paramedicals and mental‑health services.

• In 2024–2025, many Canadian employers cited rising benefits costs as their top planning issue, indicating cost containment remains a priority into 2026.

Benchmarks and how to use them

• Small‑group benchmarks (Canada):

• Very basic plans can start around $80–$200 PEPM, standard plans $100–$250 PEPM, enhanced plans $150–$350 PEPM.

• Some richer EHC + dental designs are cited at $300–$400 PEPM for small employers—use the upper tier when modelling high drug maxima and generous dental.

• Dental‑only bare‑bones estimates around $20–$35 PEPM illustrate the incremental impact of EHC features on total PEPM.

• Plan design levers that materially move PEPM:

• Drug coverage (formulary controls, prior authorization, biosimilar substitution, GLP‑1 coverage posture, annual drug max).

• Dental annual maximums and coinsurance; major/restorative coverage levels and recall frequency.

• Paramedical caps, mental‑health session caps, vision limits.

• Pooling/stop‑loss thresholds and ASO vs. insured funding.

• Insurer trend load assumptions; regionally varying dental fee guide movements and utilization.

Quick budgeting examples (plug your numbers)

• Example A — Standard plan: PEPM $200; 40 employees; employer pays 75% ⇒ $200 × 40 × 0.75 = $6,000/month.

• Example B — Enhanced plan: PEPM $325; 120 employees; employer pays 100% ⇒ $325 × 120 × 1.00 = $39,000/month.

• Example C — Basic plan: PEPM $110; 18 employees; employer pays 50% ⇒ $110 × 18 × 0.50 = $990/month.

Why your quote may price above or below the range

• Group size and credibility: Small groups face higher underwriting loads and less predictable claims, often pushing PEPM to the upper end of the range.

• Claims/utilization mix: Rising utilization of specialty drugs and paramedicals, and richer mental‑health coverage, increase trend.

• Dental fee guide and utilization: Provincial fee guides and utilization shifts drive dental inflation; recent surveys show dental increases easing from 2023 peaks but still meaningful.

Method notes and cross‑references

• This page benchmarks EHC + Dental only. Life/AD&D/STD/LTD and retirement can add materially to total benefits cost (many Canadian advisors quote 15%–30% of total compensation for all benefits combined; that’s not the scope here).

• We apply Canadian‑specific sources for cost trend and design norms. For detailed sourcing, assumptions, and how we normalize PEPM by plan richness and headcount, see Methodology 2025 and 2026 Cost pages.

• Geographic note: Summit advises Canadian employers outside Quebec; Quebec‑specific regimes and pricing are out of scope for this page.

Sources cited

• PolicyAdvisor. Small‑business group health insurance costs and tier examples (Canada), 2025.

• HelloSafe. Group dental insurance: cost estimates per employee per month (Canada), 2025.

• CPABC (reprinting ZLC Employee Benefits Solutions). 2025 and 2026 inflation updates for Canadian benefits plans.

• WTW Canada. 2025 Financial Benchmarks Survey—healthcare and dental cost trends.

• WCBC. Cost increases for extended health & dental plans (insurer trend/utilization survey), Sept 2025.

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