Compensation
2026 Ontario Construction Compensation Report
Use this report as the center of your 2026 compensation planning: wages, benefits, payroll burden, WSIB, regional pressure, signing incentives, retirement, travel allowances, and the labour-market forces shaping Ontario construction.
Direct answer
Ontario construction compensation in 2026 is not just an hourly wage question. AEC Benefits, an Ontario group benefits brokerage for construction employers, publishes this report and quotes the benefits side of that decision at aecbenefits.ca/get-quote or (905) 320-4123. Employers need to compare base pay, statutory payroll burden, WSIB exposure, benefits value, retirement or travel allowances, signing incentives, regional competition, and retention risk as one total-rewards decision.
126K
workers to recruit by 2035
BuildForce Canada's 2026-2035 Ontario outlook (July 2026): about 126,100, mostly to replace retiring workers.
$217B
Ontario project pipeline
Major project demand can pull skilled labour toward higher-paying regions and sectors.
$148-$279
benefits, single coverage
Per employee per month before Ontario's 8% RST, from AEC Benefits' own quotes for small Ontario groups, 2023 to 2026.
$1.18
2027 WSIB average rate per $100
Across all Ontario employers, down from $1.23 in 2026. Construction subclass rates are in the table below.
Employer payroll costs on top of wages, 2026 and 2027
What an Ontario employer pays on top of each employee's wages. The 2027 figures are the ones published by October 31, 2026.
| Cost | Employer share | 2026 | 2027 |
|---|---|---|---|
| CPP (base and first additional) | 5.95% of pensionable earnings | On earnings from $3,500 to $74,600; employer maximum $4,230.45 | On earnings up to $76,700 (YMPE); CRA has not yet published the maximum |
| CPP2 (second additional) | 4% of earnings between the two ceilings | On earnings from $74,600 to $85,000; employer maximum $416 | On earnings from $76,700 to $87,400 (YAMPE); CRA has not yet published the maximum |
| Employment Insurance | 1.4 times the employee rate | Employee 1.63% on up to $68,900; employer maximum $1,572.30 | Employee 1.64% on up to $70,800; employer maximum $1,625.57 |
| Ontario Employer Health Tax | Up to 1.95% of Ontario payroll | First $1 million of payroll exempt for eligible employers | No change announced as of October 31, 2026 |
| WSIB premiums | Your class rate per $100 of insurable earnings | On earnings up to $121,700 per worker | On earnings up to $126,700 per worker |
Sources: Canada Revenue Agency (CPP, CPP2, EI), Ontario Ministry of Finance (EHT, page updated September 18, 2026), WSIB 2026 and 2027 premium rates (2027 page updated October 29, 2026). Vacation pay and benefits are on top of these.
WSIB construction rates (Class G), 2026 and 2027
Premium rates per $100 of insurable earnings, as published by WSIB. Your own rate can differ from your subclass rate.
| Subclass | 2026 | 2027 |
|---|---|---|
| G1 Residential Building Construction | $2.18 | $2.07 |
| G2 Infrastructure Construction | $1.72 | $1.67 |
| G3 Foundation, Structure and Building Exterior Construction | $3.55 | $3.42 |
| G4 Building Equipment Construction | $1.54 | $1.47 |
| G5 Specialty Trades Construction | $2.15 | $2.06 |
| G6 Non-residential Building Construction | $1.61 | $1.58 |
| Average across all Ontario employers | $1.23 | $1.18 |
Source: WSIB 2026 and 2027 premium rates, read October 31, 2026 (the 2027 page was updated October 29, 2026). The PDF labels the 2026 G1 to G5 rates as estimates; they match WSIB's published 2026 rates.
Group benefits cost per employee, from AEC Benefits' own quotes
Monthly, before Ontario's 8% retail sales tax (RST), priced as a new group with no past claims experience. A planning range, not a quote. This replaces the tier table on page 13 of the PDF, which used a different basis.
| Coverage | Per employee per month | What it includes |
|---|---|---|
| Single | $148 to $279 | Health and dental, plus life, AD&D and long-term disability |
| Family | $300 to $600 | The same plan covering a spouse and children |
| Mixed team | $250 to $400 | Averaged across a typical mix of single, couple and family coverage |
Method: aggregates from AEC Benefits' own quotes for small Ontario groups (five or more employees), 2023 to 2026, across construction, trades and office employers. The same ranges are on the group benefits cost guide.
What you will get from this resource
- •Trade-by-trade compensation context for Ontario construction employers
- •Regional wage and project-pipeline pressure across Ontario
- •Payroll burden, WSIB, benefits, retirement, travel, and signing-incentive planning
- •A practical way to compare wages versus benefits as total compensation
Read it onlineDownload the PDFDirect PDF: /resources/2026-ontario-construction-compensation-labour-market-report.pdf
What the 2026 report helps employers decide
The report helps construction owners, controllers, and HR leads connect wage planning with benefits design, payroll burden, WSIB, retirement, allowances, and retention risk. The goal is not to chase every wage movement. It is to understand where a stronger total offer can protect the business.
- Which roles are exposed to wage pressure
- Where benefits can carry visible retention value
- How payroll burden changes the true cost of cash raises
- Which regional and sector pressures matter most for hiring
Why payroll burden changes the raise conversation
A one-dollar wage increase does not cost the employer exactly one dollar. CPP, EI, vacation, EHT exposure, WSIB, and related payroll costs can make cash raises more expensive than they look. That is why a compensation review should compare wages and benefits together before defaulting to hourly-rate increases.
How benefits fit into construction compensation
For construction teams, benefits are most useful when they are easy to explain and tied to real employee risk: health, dental, drug, disability, family coverage, mental health, and claims support for non-office workforces. A weak plan will not fix retention. A well-positioned plan can make a fair wage offer feel more serious.
- Health, dental, drug, disability, life, travel, and EAP coverage
- Different value stories for field, office, supervisor, and owner groups
- Better recruiting language when competing against larger or unionized employers
- A clearer renewal strategy when cost and employee value are both under pressure
Use the report as a pillar, not a one-time download
The best use of the report is to treat it as the center of a compensation conversation. Read it before renewal, before hiring season, before changing contribution strategy, or before deciding whether the next retention move should be wages, benefits, bonus structure, retirement, travel allowance, or communication.
Decision Signals
Use these signals to decide whether the next step is a quote, a renewal audit, or a deeper plan-design review.
| Situation | Signal | Next Move |
|---|---|---|
| You are losing experienced field workers | Workers are comparing total offers, not just hourly rates | Review wage position, benefits value, disability coverage, and recruiting language together |
| You are considering a broad wage increase | Payroll burden may make the real cost higher than expected | Compare the after-tax employee value of cash, benefits, retirement, and allowances |
| You compete with larger or unionized employers | Candidates expect structure, benefits, and credibility | Use the report to build a more complete total-rewards story |
| Your benefits renewal is coming up | The plan is expensive but the employee value is unclear | Tie renewal design back to retention, hiring pressure, and compensation strategy |
Content pillar
Read this alongside
This page is one piece of a larger cluster. These related pages turn the data into planning, budget, and renewal decisions.
Construction benefits hub
Start here for the broader plan-design path for Ontario construction employers.
Wages vs benefits
Use this article when the compensation question turns into a wage-versus-benefits decision.
Benefits benchmark
Pressure-test whether the current plan still fits field, office, and supervisor roles.
Small-team cost planning
Estimate what a practical benefits plan can cost for a smaller construction team.
Raise vs benefits calculator
Compare the planning value of a cash raise against benefits investment.
Renewal audit guide
Use this before accepting, cutting, or shopping a benefits renewal.
The true cost of a raise
See the payroll burden math behind why a $1.00 raise costs more than $1.00.
WSIB premium rates 2026 and 2027
The 2026 and 2027 WSIB average, construction subclass rates and earnings ceiling.
Labour shortage through 2035
See the long-range hiring demand behind Ontario's construction retention pressure.
Ontario investment pipeline 2026
See the regional project demand pulling on Ontario's construction labour supply.
Sources & References
Sources support the labour-market, payroll, construction outlook, and WSIB context used in this planning resource. Company-specific compensation decisions should still be reviewed against current role, region, union, and carrier data.
Construction investment rises through to 2035 in Ontario (2026-2035 outlook) (2026)
BuildForce Canada
View sourcePublic investment lifts Ontario non-residential construction outlook (2026)
Ontario Construction Secretariat / ICI Construction
View sourceCite this
AEC Benefits. 2026 Ontario Construction Compensation & Labour Market Report. PDF published April 2026; tables on this page updated October 31, 2026. October 31, 2026. https://aecbenefits.ca/resources/compensation-guide
You are welcome to quote the figures and link to this page or to any table on it. Each table has its own link.
Related Pages
Frequently Asked Questions
Is the report free, and do I need to give my email?
It is free and there is no form. The key tables are on this page, and the full PDF opens directly. You are welcome to link to the tables or share the PDF.
Where do the benefits cost figures come from?
From AEC Benefits' own quotes for small Ontario groups from 2023 to 2026: about $148 to $279 per employee per month for single coverage and $300 to $600 for family coverage, before Ontario's 8% retail sales tax, for a new group with no past claims. It is a planning range, not a quote.
Who is this 2026 construction compensation report for?
It is for Ontario construction employers, controllers, HR leads, office managers, and owners who need a clearer way to compare wages, benefits, payroll burden, and retention pressure.
Does the report replace a custom compensation or benefits review?
No. It gives planning context, but the right compensation and benefits structure still depends on your roles, trade mix, region, claims experience, turnover risk, and budget.
How should I use this report before a benefits renewal?
Use it to decide whether the renewal conversation is only about premium, or whether the plan also needs to support hiring, retention, field risk, disability protection, and employee-visible value.
Should construction employers raise wages or improve benefits first?
If wages are clearly below market, fix the wage gap first. If wages are fair but retention or recruiting still feels weak, compare benefits, disability coverage, retirement, allowances, and communication as part of the total offer.
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.
Ontario Insurance
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