When you see "$120,000 + benefits," what does that actually mean?
In Canada, benefits can add 15-30% to your total compensation—but only if you understand and use them.
Here's everything you need to know.
The Standard Canadian Benefits Package
What's Mandatory (By Law)
| Benefit |
What It Is |
Who Pays |
| CPP (Canada Pension Plan) |
Retirement pension |
You + employer (split) |
| EI (Employment Insurance) |
Unemployment, parental leave |
You + employer (split) |
| Provincial Health |
Basic medical coverage |
Provincial taxes |
| Statutory Holidays |
9-10 paid holidays |
Employer |
| Vacation (minimum) |
2 weeks (varies by province) |
Employer |
| Parental Leave |
Up to 18 months job protection |
EI + employer top-up (varies) |
What's Typically Offered (Not Required)
| Benefit |
Common in Tech? |
Typical Value |
| Extended health insurance |
✅ Very common |
$2,000-5,000/yr |
| Dental insurance |
✅ Very common |
$1,000-2,500/yr |
| Vision insurance |
✅ Common |
$300-500/yr |
| RRSP matching |
✅ Common |
3-6% of salary |
| Stock options/RSUs |
✅ Common (tech) |
Highly variable |
| Life insurance |
✅ Common |
1-2x salary |
| Disability insurance |
✅ Common |
60-70% of salary |
| Wellness spending |
Growing |
$500-2,000/yr |
Extended Health Insurance
What Provincial Health Covers
| Covered |
NOT Covered |
| Doctor visits |
Prescription drugs |
| Hospital stays |
Dental care |
| Surgery |
Vision/glasses |
| Emergency care |
Physiotherapy |
| Basic diagnostics |
Mental health (private) |
What Employer Extended Health Adds
| Coverage |
Typical Limits |
| Prescription drugs |
80-100% coverage |
| Dental |
$1,500-3,000/year |
| Vision |
$300-500/year for glasses/contacts |
| Paramedical (massage, physio, chiro) |
$500-1,000/year per type |
| Mental health |
$1,000-5,000/year |
| Travel emergency |
Up to $5M while traveling |
What Good Tech Company Coverage Looks Like
| Feature |
Basic |
Good |
Excellent |
| Drug coverage |
80% |
90% |
100% |
| Dental annual max |
$1,500 |
$2,500 |
$3,500+ |
| Mental health |
$500 |
$2,000 |
$5,000+ |
| Paramedical |
$500/type |
$1,000/type |
$2,000+/type |
| Single vs Family |
Same |
Same |
Family premium |
Sources: Invest Ottawa Tech Companies, UpGrad Benefits Guide
RRSP Matching
How It Works
| Your Contribution |
Employer Match |
Total |
| 0% |
0% |
0% |
| 3% |
3% |
6% |
| 5% |
5% |
10% |
| 6%+ |
4-6% (capped) |
10-12% |
Example: On $100,000 salary with 4% match:
- You contribute: $4,000
- Employer adds: $4,000
- Free money: $4,000/year
RRSP vs. TFSA (Quick Comparison)
| Feature |
RRSP |
TFSA |
| Tax on contributions |
Deductible now |
After-tax |
| Tax on withdrawal |
Taxed as income |
Tax-free |
| Employer matching |
Common |
Rare |
| Best for |
High earners, retirement |
Flexibility, any purpose |
What's Good RRSP Matching?
| Level |
Match % |
Notes |
| Below average |
0-2% |
Often smaller companies |
| Average |
3-4% |
Most tech companies |
| Good |
5-6% |
Competitive packages |
| Excellent |
7%+ or dollar-for-dollar |
Banks, some large tech |
Stock Compensation: RSUs, Options, and ESPP
Types of Equity
| Type |
What It Is |
Risk Level |
| RSU (Restricted Stock Units) |
Shares given to you over time |
Low (it's real stock) |
| Stock Options |
Right to buy at set price |
Medium (only valuable if stock rises) |
| ESPP (Employee Stock Purchase) |
Buy stock at 15% discount |
Low (built-in discount) |
How RSUs Work
| Year |
Vesting |
If Grant = $40K |
| Year 1 |
25% |
$10,000 vests |
| Year 2 |
25% |
$10,000 vests |
| Year 3 |
25% |
$10,000 vests |
| Year 4 |
25% |
$10,000 vests |
Common vesting schedules:
- 4-year with 1-year cliff (most common)
- 3-year monthly vesting (some companies)
- Backloaded (more in later years—Amazon)
Stock at Major Canadian Tech Companies
| Company |
Type |
Typical New Grad Grant |
| Shopify |
RSU |
$20K-50K |
| Google Canada |
RSU |
$60K-100K |
| Amazon Canada |
RSU |
$30K-60K (backloaded) |
| Meta Canada |
RSU |
$80K-120K |
| Banks |
Cash bonus typically |
— |
Tax Implications of RSUs
| Event |
Tax Treatment |
| Grant |
No tax |
| Vesting |
Taxed as employment income |
| Sale |
Capital gains (if held) |
Important: You're taxed when RSUs vest, even if you don't sell. Budget for this.
Paid Time Off (PTO)
Vacation Minimums by Province
| Province |
After 1 Year |
After 5 Years |
| Ontario |
2 weeks |
3 weeks |
| BC |
2 weeks |
3 weeks |
| Alberta |
2 weeks |
3 weeks |
| Quebec |
2 weeks |
3 weeks |
| Saskatchewan |
3 weeks |
4 weeks |
What Tech Companies Typically Offer
| Level |
Vacation |
Notes |
| Minimum |
2 weeks |
Small companies, contract roles |
| Standard |
3 weeks |
Most employers |
| Good |
4 weeks |
Competitive packages |
| Excellent |
5+ weeks or unlimited |
Top tier |
"Unlimited PTO" Reality
| Pro |
Con |
| Flexibility |
Often take less time off |
| No accrual tracking |
No payout when you leave |
| Sounds great |
Pressure to not use it |
Typical actual usage: 2-3 weeks even with "unlimited"
Signing Bonuses
What's Typical
| Company Type |
New Grad |
Mid-Level |
Senior |
| Big Tech |
$10K-30K |
$20K-50K |
$30K-100K |
| Canadian Tech |
$0-10K |
$10K-20K |
$20K-40K |
| Banks |
$0-5K |
$5K-15K |
$10K-30K |
| Startups |
Rare |
$0-10K |
$10K-30K |
Important Details
| Factor |
Details |
| Taxed at ~40% |
A $20K bonus = ~$12K after tax |
| Clawback |
Often must repay if leave within 1 year |
| Negotiable |
Often easier to increase than base salary |
See: Salary Negotiation Guide
Other Benefits Worth Knowing
Common Tech Perks
| Benefit |
Typical Value |
Notes |
| Learning/education budget |
$1,000-5,000/yr |
Courses, conferences, books |
| Wellness spending account |
$500-2,000/yr |
Gym, sports, fitness |
| Home office stipend |
$500-2,000 (one-time) |
WFH setup |
| Internet/phone |
$50-100/month |
Remote work support |
| Commuter benefits |
$100-200/month |
Transit pass |
| Meals/snacks |
$0-500/month |
In-office perks |
| Parental leave top-up |
6-17 weeks at 100% |
Above EI coverage |
Less Common But Valuable
| Benefit |
What It Is |
| Sabbatical |
Paid extended leave (often after 5+ years) |
| Student loan repayment |
Company helps pay off loans |
| Fertility benefits |
IVF, egg freezing coverage |
| Pet insurance |
Coverage for veterinary costs |
| Legal services |
Access to lawyers for personal matters |
Benefits Value Calculator
How to Estimate Total Value
| Benefit |
How to Calculate |
| RRSP matching |
Match % × salary |
| Health insurance |
$2,000-5,000 (family value) |
| Dental |
$1,500-3,000 |
| Stock (annual vest) |
Grant ÷ vesting years |
| Signing bonus |
Amount ÷ expected tenure |
| PTO above minimum |
(Extra days ÷ 260) × salary |
Example Calculation
For a $100K salary offer:
| Benefit |
Value |
| Base salary |
$100,000 |
| RRSP match (4%) |
$4,000 |
| Health/dental |
$3,000 |
| RSU ($40K/4yr) |
$10,000 |
| Signing bonus ($15K/2yr) |
$7,500 |
| Extra PTO (1 week) |
$1,923 |
| Total Compensation |
$126,423 |
Comparing Benefits Across Offers
What to Ask
| Question |
Why It Matters |
| What's the RRSP match? |
Free money |
| What's the vesting schedule? |
When you get stock |
| Is there a signing bonus clawback? |
If you leave early |
| What's the health spending account limit? |
Flexibility in spending |
| What's parental leave top-up? |
If planning family |
Red Flags
| Red Flag |
What It Means |
| No benefits for 3+ months |
Normal probation, but ask |
| No RRSP matching |
Below market for tech |
| "We don't do equity" |
Okay for banks, concerning for startups |
| Unlimited PTO but discouraged |
Culture issue |
FAQ
When do benefits start?
Usually on start date or first of next month. Some have 3-month waiting period for full benefits.
Can I negotiate benefits?
Signing bonus: Yes
Extra PTO: Sometimes
RRSP match: Rarely (company-wide policy)
Stock: Yes (refresh grants)
What happens to benefits if I'm laid off?
- Health coverage typically ends (COBRA-like options vary)
- Vested stock is yours
- Unvested stock usually forfeits
- RRSP stays with you
Are benefits taxable?
- Health premiums: Employer-paid are tax-free
- RRSP match: Tax-deferred
- RSUs: Taxed at vesting
- Signing bonus: Taxed as income
Key Takeaways
- Benefits add 15-30% to total comp — Don't ignore them
- RRSP matching is free money — Always contribute at least to the match
- RSUs are taxed at vesting — Budget for the tax bill
- Unlimited PTO often means less PTO — Check the culture
- Signing bonuses have clawbacks — Know the terms
- Ask about benefits before accepting — They vary widely
Your salary is just the beginning. Benefits complete the picture.
Related Articles:
- Salary Negotiation Guide
- Software Engineer Salary 2026
- Contract vs Full-Time
- How to Compare Multiple Offers
- Browse All Open Positions
Sources:
- UpGrad: Top 10 Employee Benefits in Canada
- Invest Ottawa: Ottawa Tech Company Benefits
- Benchmark Benefits: Future of Employee Benefits 2025
- Asanify: Employee Benefits in Canada 2025
- Nucamp: Top 10 Tech Companies in Canada