Financial Consumer Agency of Canada
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Financial Consumer Agency of Canada

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Benefits

Benefit plans can make up a significant part of your total pay. It’s worth getting all the information you can about employee benefits when you are offered a job.

Before accepting, you will usually negotiate a starting salary or base pay. In addition, your employer may offer certain benefit plans. If you’re having trouble agreeing on a salary or other terms, look beyond salary. Vacation time, personal days and other benefits are extremely valuable and may be negotiated more easily than a higher starting salary.

Your employer’s benefit plan saves you money since your employer pays for things that you would otherwise have to cover yourself. For example:

  • A company health care plan may pay for all or part of your prescription drugs or dental costs.

If your spouse’s employer also offers a health plan, you can save money by comparing the plans and choosing the one with the best coverage for the lowest cost.

You can also save money by coordinating between your employer’s plan and the plan offered by your spouse’s employer. If the two plans have different levels of coverage, coordinating your family benefits can help you recover up to 100 percent of your expenses.

  • A company may offer a pension plan and agree to match all or part of what you contribute. For example, if your employer contributes 50 cents for every dollar you contribute, this is an instant 50 percent return on your investment. It’s like getting free money for your retirement!
  • An employer may provide disability benefits that pay part or all of your salary if you cannot work because of sickness or injury.
  • An employer may provide life insurance. This can lower the cost of term life insurance.

Before signing up for a benefit plan, find out:

  • When does coverage start? There may be a waiting period.
  • How much will you pay for the benefit plan?
  • Does the health care plan cover dependants (spouse, children)?
  • Can you opt out of any part of the plan?
  • Does your employer offer a company savings or pension plan? If so, how much can you contribute? How much will the company contribute?


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Date Modified:
2013-01-31