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UPDATED JUL 7, 2026💡 What to expect for employee benefits when you hire in Canada through Toku. Every Canadian hire receives a fully employer-paid group benefits package with Sun Life plus an optional retirement plan with an employer match - both administered by Toku.
At a Glance
| Item | Detail |
|---|---|
| Group benefits carrier | Sun Life (policyholder: WorkCo Canada People Inc.) |
| Cost share | 100% employer-paid - billed to the client |
| Participation | Mandatory for all full-time regular employees |
| Waiting period | None - coverage is retroactive to start date |
| Retirement | Canada Life Group RRSP + DPSP; employer matches up to 4% of earnings |
| Tax note | Employer-paid premiums may be a taxable benefit to employees |
Statutory Benefits
Canadian employees are covered by their provincial health insurance plan for core medical care. The Sun Life package supplements this by covering eligible expenses provincial plans don't fully cover. For Québec residents, drug coverage automatically adjusts to meet RAMQ requirements.
On involuntary terminations, benefits must be extended for the length of the statutory (ESA) notice period when termination pay is issued as a lump sum - Toku manages this.
Supplemental Benefits Through Toku (Sun Life)
The package is mandatory and fully employer-paid, with no deductible and a drug card included:
| Coverage | Detail |
|---|---|
| Prescription drugs | 100% reimbursement (lowest-priced equivalent substitution) |
| Hospital | 100% of ward-to-semi-private difference |
| Travel | Out-of-Canada emergency, $3,000,000 lifetime max per person; 60 days/trip |
| Paramedical | 100% up to $500 per person, per specialty, per year (massage, physio, psychology, chiro, and more) |
| Virtual health | Teladoc Medical Experts + Lumino Health Virtual Care (24/7, no out-of-pocket) |
| Dental | Preventive & basic 100%, major 50%; $1,500/person annual max |
| Vision | 100% up to $250 per 24 months (per 12 months under age 18) |
| Short-term disability | 66.67% of weekly earnings, max $1,000/week, up to 16 weeks |
| Long-term disability | 66.67% of monthly earnings, max $7,500/month, to age 65 |
| Life & AD&D | 2× annual earnings, max $400,000; dependent life: spouse $5,000, child $2,500 |
Costs & Who Pays
The benefits plan is 100% employer-paid and is a cost you should expect on every Canadian hire. Note that employer-paid premiums may be taxable income to the employee — the amounts flow through payroll automatically. If the employee joins the retirement plan, the employer match (up to 4% of earnings) is an additional cost.
Enrollment
Enrollment is mandatory for all eligible (full-time regular) employees and their dependents, with no waiting period — coverage is retroactive to the start date. Toku's local broker contacts each new employee within the first month, and enrollment must be completed within 31 days of eligibility (late applications may face restrictions). Life events (marriage, birth, dependent changes) must be reported within the same 31-day window.
Retirement: Group RRSP + DPSP (Canada Life)
Participation is voluntary and open to all full-time employees at any time:
- Employee contributes 1% - 4% of earnings by payroll deduction; Toku matches up to 4% into the DPSP (billed to the client). Additional unmatched voluntary contributions are allowed within CRA limits.
- Both employee and employer contributions vest immediately.
- Contributions can be changed or paused at any time; annual RRSP tax receipts are issued via the Canada Life portal.
Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Questions? Contact [email protected].