Interactive Calculator

Cash Raise vs Group Benefits Calculator

Make informed compensation decisions for your Ontario construction team. See the real cost and value comparison instantly.

True Cost Analysis

Factor in CPP, EI, WSIB, and income tax for accurate calculations

Benefits Tier Matching

See equivalent Silver, Gold, or Platinum package levels

Tax-Free Value

Benefits feel larger than cash raises due to tax advantages

Why Compare Cash Raises to Group Benefits?

In Ontario construction, a $1.00 hourly raise costs employers about $1.10 when you add CPP, EI, and WSIB — but nets employees only $0.63 after tax and deductions.

Redirecting some of that budget into tax-free group benefits can feel more valuable for both employers and employees over time.

Better Employee Retention

Benefits show long-term commitment to worker health and families

Tax Advantages

Benefits are tax-free to employees, making them feel more valuable

Visible Value

Coverage for prescriptions, dental, and vision creates lasting impact

Quick Facts

Employer Burden

Every $1.00 raise costs employers $1.10 total

Employee Reality

Employees keep only 62.76% after deductions

2025 Rates

Based on Ontario Class G construction averages for $60,000 workers

Interactive Comparison Calculator

Adjust the slider below to compare different hourly raise amounts. All calculations update in real-time based on 2025 Ontario construction industry rates.

Ontario Construction • 2025 Rates

What does a $1.00/hr raise really cost?

In Ontario construction, a $1.00 hourly raise costs employers about $1.10 when you add CPP, EI, and WSIB, but nets employees only $0.63 after tax and deductions.

This tool uses 2025 Ontario averages for a $60,000 construction worker and employers in Class G construction. Rates are approximate and for education only. Always confirm with your payroll provider, accountant, or benefits advisor.

Quick snapshot

A $1.00/hr raise costs the company more than it feels in the employee's pocket.

Annual employer cost$2299.23

Annual employee net$1263.60

Raise amount

Interactive slider

Choose an hourly raise for one full-time employee. We assume 2,080 hours per year (40 hours per week × 52 weeks).

$1.00 per hour raise

Annual gross raise: $2080.00

Net take-home after tax & deductions: $0.61/hr ($1263.60/year)

$0.50/hr$2.00/hr$5.00/hr

Employer total cost

$1.11 /hr

$2299.23 per year

Employee net

$0.61 /hr

$1263.60 per year

Tax & deductions

39.3%

Lost to CPP, EI, tax

Employer breakdown

Cash raise cost to employer

Gross wage increase	$1.00
CPP (5.95%) employer	$0.06
EI (2.296%) employer	$0.02
WSIB (2.29%)	$0.02
Total employer cost	$1.11

Employer burden above wage10.5% of gross

Employee breakdown

How much the employee keeps

Gross raise before tax	$1.00
Income tax (31.66%)	$0.32
CPP (5.95%) employee	$0.06
EI (1.64%) employee	$0.02
Net in paycheque	$0.61

Employee keeps60.8% of gross

Lost to tax & deductions39.3% of gross

Cash raise vs benefits comparison

Side-by-side

This table compares using the raise as straight hourly cash versus redirecting the same gross budget into a group benefits package. For benefits, we assume the employer would not spend more than about $300/month ($3,600/year) per employee.

View	Cash raise option	Benefits option
Hourly amount	$1.00	Benefits budget equal to $1.00 (capped at $3,600/year)
Annual employer spend	$2299.23	$2080.00 per year
Employee yearly value	$1263.60	Tax-free coverage for health, dental, drugs, etc.
Tax impact	Employee loses about 39.3% of gross to tax, CPP, and EI	Employer treats premiums as an expense, employee receives benefits tax-free
How it feels to employees	Small bump in take-home pay, often unnoticed after a few weeks	Visible coverage and claims, often seen as a sign that the employer cares about families

Reminder: benefits are typically tax-free to employees and often feel larger than an equivalent taxable raise, especially when families use prescriptions, dental, or vision care.

2025 rates used: CPP 5.95%, EI employer 2.296% ($1.64/$100 × 1.4), WSIB 2.29% (general construction), income tax 31.66% (federal 20.5% + Ontario 11.16%). Not included: CPP2 (4% on earnings $71,300–$81,900) and Ontario EHT (1.95% on payroll over $1M). Verify your WSIB rate at wsib.ca. Estimates only — confirm with your payroll advisor.

Benefits value for this budget

Silver / Gold / Platinum

We line up the same gross dollar amount you would spend on a raise with an approximate benefits package level. For practicality, we assume the maximum cost for a single employee would not exceed $300/month ($3,600/year).

Silver-level benefits budget

For a $1.00/hr gross budget (about $2080.00 per year), we use $2080.00/year as the benefits comparison amount

Benefits tier positionSitting in the Silver range

SilverGoldPlatinum

Benefits budget used

$2080.00 /yr

($173.33 /mo)

$1.00/hr → Silver – basic health and dental
$1.50/hr → Gold – enhanced, with vision and stronger drug coverage
$2.00/hr → Platinum – comprehensive, with wellness and add-ons

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Educational only. This calculator uses a 2,080 hour work year and 2025 Ontario construction assumptions: employer CPP at 5.95%, employer EI at 2.296%, WSIB at 1.61% for Class G, a combined marginal tax rate of 29.65%, employee CPP at 5.95%, and employee EI at 1.64%. Actual payroll, WSIB class, and tax brackets differ by employer and employee. Always confirm your numbers with your payroll provider, accountant, and licensed benefits advisor.

Related Resources

Want to dive deeper? Explore these comprehensive guides and tools.

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