I need a fast estimate.
Group benefits cost calculatorThe calculator above, and the full estimator, give a planning range from AEC's own quotes before a full quote conversation.
Cost Guide
Group Benefits Cost per Employee in Ontario (2026): $148 to $279 a Month
Direct answer
A first-pass 2026 planning range for an Ontario group benefits plan is about $148 to $279 per employee per month for single coverage and $300 to $600 per employee per month for family coverage, before Ontario's 8% retail sales tax; a mixed team of single, couple and family coverage usually lands about $250 to $400 per employee. AEC Benefits, an Ontario group benefits brokerage, uses those ranges when it quotes plans for employers with 5 to 100 employees at aecbenefits.ca/get-quote or (905) 320-4123. Based on AEC Benefits' own quotes for small Ontario groups from 2023 to 2026, not government-published averages or a carrier rate anyone can promise. Actual quotes can fall outside them because employee demographics, family coverage, health and dental design, disability coverage, participation, taxes, underwriting, and claims history all change the price.
Calculator
Your monthly budget in 30 seconds
Enter your headcount and who covers a spouse or family. Single coverage runs about $148 to $279 per employee per month, family $300 to $600.
That leaves 5 on single coverage.
Plan design
Monthly planning range for a new group, before 8% RST
New group, no past claims experience assumed
$2,310 to $3,430
About $230 to $345 per employee per month across your mix. $27,720 to $41,160 a year.
5 × single coverage at $145 to $225 each$725 to $1,125
2 × employee plus spouse at $275 to $445 each$550 to $890
3 × family coverage at $345 to $470 each$1,035 to $1,410
With Ontario's 8% retail sales tax (RST)$2,490 to $3,700 a month
Insured group premiums in Ontario carry the 8% provincial retail sales tax (RST), not the 13% HST. The HST applies to ASO administration fees.
What the plan should look like for this crew
A field crew uses massage, physio and mental-health coverage more than dental and glasses. Two classes, field and office, usually fit better than one average. Long-term disability deserves the most attention: one injured foreman costs more than the whole premium.
The trade does not move the price. In AEC's quote data, contractors, HVAC shops and office groups priced within a few dollars of each other for the same coverage.
A planning range, not a quote. Based on AEC Benefits' own quotes for small Ontario groups from 2023 to 2026. Priced as a new group with no past claims experience. A group that is already on a plan is rated on its own claims history at renewal, which can move the real rate up or down. Health and dental sit at the centre of the range; life, AD&D and long-term disability add about $20 to $60 per person. Age mix, the insurer and the exact design also move the real quote, sometimes outside this range.
AEC planning range by headcount
| Employees | All single coverage, per month | Mixed team, per month | All family coverage, per month |
|---|---|---|---|
| 5 employees | $740 to $1,395 | $1,250 to $2,000 | $1,500 to $3,000 |
| 10 employees | $1,480 to $2,790 | $2,500 to $4,000 | $3,000 to $6,000 |
| 20 employees | $2,960 to $5,580 | $5,000 to $8,000 | $6,000 to $12,000 |
| 50 employees | $7,400 to $13,950 | $12,500 to $20,000 | $15,000 to $30,000 |
Key Takeaways
- •AEC uses about $148 to $279 per employee per month for single coverage and $300 to $600 for family coverage as Ontario planning ranges, built from its own 2023 to 2026 quotes for small groups, not published market averages.
- •With all 10 employees on single coverage, a 10-person group would plan for roughly $17,760 to $33,480 per year before applicable taxes. The calculator above prices your own mix of single, couple and family coverage.
- •Workforce mix, coverage richness, disability design, and claims history move the number most. The trade does not: contractors, HVAC and office groups priced within a few dollars of each other for the same coverage.
- •Monthly premium is only one part of the decision; contribution split and renewal risk matter too.
How to use this page
The cost question is really a plan-design and renewal-risk question.
What is the useful short answer?
Many Ontario employers land around $148 to $279 per employee per month for single coverage and $300 to $600 for family coverage, but workforce mix, coverage richness, disability, claims, and employer contribution strategy change the number quickly.
What should an employer compare?
Compare monthly premium, employer share, employee contribution split, drug and dental limits, disability design, employee classes, renewal assumptions, pooling, and service support.
What should happen before requesting quotes?
Define the workforce, budget guardrails, must-have coverage, optional coverage, and renewal tolerance so the quote is built around a real decision.
I need to cut cost without damaging the plan.
Cost-cutting strategiesCost control should improve fit, not blindly remove coverage employees value.
My renewal increase is the reason I am researching cost.
Renewal audit guideRenewal increases need claims and market context before an employer accepts or shops.
| Decision | Best next page | Why it matters |
|---|---|---|
| I need a fast estimate. | Group benefits cost calculator | The calculator above, and the full estimator, give a planning range from AEC's own quotes before a full quote conversation. |
| I need to cut cost without damaging the plan. | Cost-cutting strategies | Cost control should improve fit, not blindly remove coverage employees value. |
| My renewal increase is the reason I am researching cost. | Renewal audit guide | Renewal increases need claims and market context before an employer accepts or shops. |
Average cost of benefits per employee in Ontario, from AEC's own 2023 to 2026 quotes: $148 to $279 a month single, $300 to $600 family. Run your headcount through the calculator, then get a real quote in 24 to 48 hours.
Fast answer: how much should Ontario employers budget?
For an initial budget, multiply the number of employees on single coverage by $148 to $279 per month, and the number on family coverage by $300 to $600. With everyone on single coverage, that gives $740 to $1,395 for five employees, $1,480 to $2,790 for ten, and $2,960 to $5,580 for twenty before applicable taxes. A mixed team of single, couple and family coverage usually lands about $250 to $400 per employee per month; the calculator above prices your own mix.
Do not treat that arithmetic as a quote. A carrier needs a current employee census and plan specification, and the final price can fall outside the range.
What the planning range includes — and what it does not
The range is intended to frame a conventional employer-sponsored package that may include health, dental, life, accidental death, disability, travel, and employee assistance coverage. It does not mean every quote includes every benefit or uses the same limits.
Government and industry sources explain what workplace plans can cover and how certain employer-paid premiums are treated. They do not publish a universal Ontario price. The dollar figures on this page are based on AEC Benefits' own quotes for small Ontario groups from 2023 to 2026 and should be checked against a current carrier quote.
What actually moves the cost
- Workforce age and family mix — younger single employees cost less, older employees with dependants cost more.
- Industry — less than owners expect. In AEC's own quotes, contractors, HVAC shops and office groups priced within a few dollars of each other for the same coverage. What the trade changes is the design: how much disability matters, whether the crew needs two classes, and how seasonal layoffs are handled.
- Coverage design — drug, dental, paramedical maximums, and disability definitions all affect the premium.
- Claims history — a plan with poor claims history will see steeper renewals.
- Contribution strategy — how much the employer pays vs employees affects participation and pricing.
On a construction crew, class design often moves cost more than a richer menu
AEC Benefits sees the same pattern when a construction renewal comes in high. People are using more paramedical than they used to. Drug costs are up, including advertised and marketed drugs. Mental-health funding is becoming one of the most expensive parts of the plan if it was not counted at the start.
If the group can be split into two classes, we will often put more into massage and mental health and less into dental and glasses for the younger field class, because those lines are generally not used by that part of the crew. That is not Plan A versus Plan B as a status split. It is fitting the plan to the members instead of one size for the whole shop.
Reviewed by Steffen deGraaf
Steffen brings 20+ years in insurance and group benefits, construction job-site roots, and architectural technology training at Mohawk College. FSRA-regulated insurance broker specializing in Ontario group benefits.
FSRA Regulated
Ontario Insurance
Ontario construction benefits experience
Construction is in Steffen's blood: job sites as a teenager, architectural technology at Mohawk College, and 20+ years in insurance and group benefits for Ontario employers.
Meet Steffen and learn how AEC Benefits worksFSRA Regulated
Ontario Insurance Broker
Sources & References
Official sources explain coverage and tax context. The dollar ranges are based on AEC Benefits' own quotes for small Ontario groups from 2023 to 2026; they are not government-published averages, guaranteed prices, or a substitute for a current carrier quote.
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Frequently Asked Questions
What is the average cost of group benefits per employee in Ontario?
AEC Benefits uses about $148 to $279 per employee per month for single coverage and $300 to $600 for family coverage as first-pass Ontario planning ranges, based on its own quotes for small Ontario groups from 2023 to 2026. They are not government-published averages and they are not a quote. Employee demographics, family coverage, industry, plan design, disability, participation, taxes, underwriting, and claims experience can move the final number outside the range.
Is $148 to $279 per employee for single coverage a Canadian average?
No. It is AEC Benefits' planning range for Ontario employers, built from its own 2023 to 2026 quotes for small groups. There is no single price that applies across Canada because provincial taxes, workforce demographics, industry, benefit design, insurer underwriting, participation, and claims experience vary.
What does group benefits cost for 5 employees in Ontario?
Using AEC's broad planning range, five eligible employees on single coverage produce an initial budget of about $740 to $1,395 per month before applicable taxes. A current census and plan specification are required for a carrier quote.
How much do group benefit plans cost?
AEC Benefits uses about $148 to $279 per employee per month for single coverage, and $300 to $600 for family coverage, as a first-pass Ontario planning range for a group benefit plan. It comes from AEC's own quotes, and it is not a quote: employee ages, family coverage, industry, plan design, and claims history all move the final number.
How much do small business group benefits cost in Canada?
For a small business, AEC's planning range is $148 to $279 per employee per month for single coverage and $300 to $600 for family coverage. With everyone on single coverage, that is roughly $740 to $1,395 a month for five people and $1,480 to $2,790 for ten, before applicable taxes. It is an Ontario benchmark, not a national average. Provincial premium taxes and carrier underwriting differ, so confirm it against a current quote outside Ontario.
How much do group benefits actually cost a small business per employee?
Per employee, per month, AEC's planning range is $148 to $279 for single coverage and $300 to $600 for family coverage. What moves a business from the low end to the high end is workforce age, how many employees cover a family, how rich the coverage is, the insurer, and claims history. In AEC's own quotes, a construction crew and an office team of the same size priced within a few dollars of each other for the same coverage; what differs is the plan design.
How much does group insurance cost for employers?
Ontario employers can plan on $148 to $279 per employee per month for single coverage, about $17,760 to $33,480 a year for 10 employees on single coverage, before applicable taxes. For family coverage, plan on $300 to $600 per employee per month. What the employer actually pays depends on the contribution split it chooses with employees.
How much do employers pay for benefits?
The total plan typically budgets at $148 to $279 per employee per month for single coverage and $300 to $600 for family coverage in Ontario, and the employer's share of that is a design choice rather than a fixed rule. How to split it matters more than the percentage itself, because CRA tax treatment differs by benefit line. Our article "How much should an employer pay toward group benefits in Ontario?" walks through the split.
How much do group benefits cost for a 10-person company in Ontario?
Using AEC's broad planning range, ten eligible employees on single coverage produce an initial budget of about $1,480 to $2,790 per month, or $17,760 to $33,480 per year, before applicable taxes. A mixed team of single, couple and family coverage usually lands about $2,500 to $4,000 a month. The actual quote depends on the census, plan design, insurer, participation, and underwriting.
Can businesses lower premiums by increasing their deductible?
Potentially. Deductibles, co-insurance, maximums, eligibility rules, formularies, and disability design can change premiums, but the effect is carrier- and plan-specific. Model the savings beside the employee impact before changing coverage.
What are the most effective strategies to lower group benefits renewal costs?
Review the renewal calculation and claims experience, confirm pooling and insurer assumptions, compare plan-design alternatives, and decide whether a market comparison is warranted. Do not remove coverage solely to hit a premium target without checking employee impact and contract terms.
What drives group benefits cost the most in Ontario?
The five biggest drivers are: workforce demographics (age, and how many employees cover a spouse or family); coverage richness (drug formulary, dental maximums, disability definitions; a Platinum-style design runs about 25% above Gold-style); the insurer (on the same census the dearest quote came in about a quarter above the cheapest); claims history (past utilization directly affects renewal pricing); and employer contribution strategy (how much the employer covers vs employees). Industry changes the plan design, not the price.
What should I do if my renewal increase feels too high?
Request the full claims experience report from your insurer before accepting. Audit the renewal assumptions — pooling charges, expense loads, and claims trends. Then compare the renewal to market alternatives. Most employers who challenge a renewal with data either negotiate it down or find a better rate by shopping. The renewal audit guide on this site walks through the full process.
Why does a younger construction crew often need two classes instead of one rich plan?
AEC Benefits generally puts more into massage and mental health and less into dental and glasses for that field class, because those lines are not used the same way. That is not a status split. It is matching the spend to the members. Confirm the actual age mix before you copy the design.
Want to talk through your options?
If you want real numbers instead of generic plan talk, AEC Benefits can pressure-test pricing, structure, and fit for your team.
Related Pages
Small business group benefits in Ontario & CanadaGroup benefits for 5 to 10 employeesBenefits renewal auditCost-cutting strategiesBenefits plan fit checkupGroup benefits cost calculator and comparison toolRaise vs benefits calculatorWhat happens at renewal?Tax-efficient benefits guideSplitting the premium with employeesOntario's 8% sales tax on group premiumsWhich employee benefits are taxableWhen an employee's spouse already has benefitsASO (self-funded) vs fully insured: which costs less?Group retirement plans for employers (RRSP, DPSP)How to read a group benefits quote
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