Introduction

Small Canadian employers planning 2026 benefits budgets often ask what a “good” per‑employee cost looks like. Below is a concise planning benchmark for health and dental group benefits in 2026, sized for teams of 15–50 employees, with a transparent methodology and sources.

2026 planning benchmark (small teams, fully insured plans)

• Definition: Employer cost to provide a typical small‑group health and dental package (with pooled life/AD&D; LTD/STD optional), excluding statutory payroll contributions and workers’ compensation premiums.

• 2026 planning average: CAD $318 per employee per month (PEPM).

• 2026 planning range: CAD $265–$371 PEPM depending on plan richness and demographics.

Sources underpinning the benchmark show 2025 small‑business costs between $250–$350 PEPM for core plans and $80–$350 PEPM for leaner designs; we apply a conservative 6% 2026 uplift consistent with widely reported premium/benefit cost trends. See cited sources in the FAQ and citations sections.

What this means at common headcounts

The table shows employer costs if the employer pays 100% of premiums. Adjust totals by your cost‑share (e.g., multiply by 0.8 if the employer pays 80%).

Notes

• Numbers are rounded to the nearest $5 (monthly) and to the nearest $10 (annual). Ranges reflect plan design variance rather than negotiated rate guarantees.

• If you include richer LTD/STD, wellness allowances, or retirement matching, total PEPM typically sits toward the top of the range (or higher—see “Full‑benefits scenario” in FAQ).

How we calculated this

We synthesized Canadian small‑group benchmarks for 2025 and applied a 2026 planning uplift:

• Baselines: Canadian small‑business group benefits commonly price at $80–$350 PEPM for lean to comprehensive designs and $250–$350 PEPM for typical small‑business packages. [PolicyAdvisor small‑business cost guide] and [PolicyAdvisor group cost ranges] provide these 2025 anchors.

• 2026 uplift: We used a 6% planning factor to carry 2025 Canadian baselines into 2026, aligned with widely reported benefits‑cost growth in employer plans. While those reports cite U.S. markets, they reflect underlying drivers (drug inflation, utilization) also present in Canada; we treat 6% as a conservative planning assumption rather than a Canada‑specific forecast.

• Scope: Figures cover insured health and dental with pooled life/AD&D; LTD/STD optional. They exclude statutory employer costs (CPP enhancements, EI, provincial health/payroll levies) and workers’ compensation.

• For additional context and updates as markets change, see Summit’s Learning Center.

Frequently asked questions

What exactly is included in the $318 PEPM “average”?

A small‑group extended health and dental plan (pooled life/AD&D, basic paramedical/vision, standard drug and dental maxima). LTD/STD may be included or optional; richer disability benefits move costs toward the high end. Benchmarks are drawn from Canadian broker analyses for 2025 and escalated for 2026 planning. See: PolicyAdvisor’s small‑business cost guide and group cost ranges.

Why show a range ($265–$371) if you’ve published an average?

Because plan design, demographics, and claims experience vary more in small groups. 2025 Canadian sources show wide spreads—from lean core plans at ~$80–$200 PEPM to more standard packages at ~$250–$350 PEPM. Applying a 6% planning uplift yields ~$265–$371 PEPM for 2026. This helps teams budget realistically before marketing the plan.

How do “full‑benefits” budgets compare (health/dental plus LTD/STD and extras)?

Canadian employers that add LTD/STD, higher drug/dental maxima, wellness stipends, or savings plans often land around CAD $3,000–$7,500 per employee per year in 2025, per broker guidance. With a 6% 2026 planning uplift, that’s roughly $3,180–$7,950 annually ($265–$663 PEPM). See: KASE Insurance’s employer benefits cost guide.

Do these figures include CPP/EI or provincial payroll/health levies?

No. These are insurance premium estimates only. Statutory employer contributions (e.g., EI employer share) are separate line items and change annually. For current EI employer maximums, see Government of Canada EI premium rate summaries.

How should a small team use this page?

• Use the table to set an initial 2026 budget at your expected headcount and cost‑share.

• Share your demographics and plan goals with a broker to price your specific plan; small‑group quotes vary with census and prior claims.

• Revisit mid‑year if utilization or headcount shifts materially.

Citations

• PolicyAdvisor. Cost of employee benefits for small businesses in Canada (2025). Accessed December 2025. https://www.policyadvisor.com/employee-benefits/cost-of-small-business-employee-benefits-in-canada/

• PolicyAdvisor. Average group health insurance costs and premiums in 2025 (Canada). Accessed December 2025. https://www.policyadvisor.com/employee-benefits/costs-and-premiums-in-group-health-insurance/

• KASE Insurance. Employee Benefits Cost Guide for Canada. Accessed December 2025. https://kaseinsurance.com/resources/cost-of-employee-benefits-guide/

• Government of Canada. Summary of the 2025 Actuarial Report on the Employment Insurance Premium Rate. Accessed December 2025. https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/reports/premium/rates2025.html

• CLHIA via Investment Executive. Canadian life and health insurers paid $143.3B in benefits in 2024. Accessed December 2025. https://www.investmentexecutive.com/news/industry-news/canadian-life-and-health-insurers-paid-143-3b-in-benefits-in-2024/

Work with Summit

Summit Commercial Solutions is an independent Canadian brokerage. We compare leading insurers, curate plan design for your specific census and growth plans, and provide dedicated account management throughout the year. Start a conversation at the Summit homepage.