Three federal government announcements that may affect your total rewards

Since April, our experts have been keeping a close eye on federal government announcements related to the 2022 budget. They’ve identified three changes that may have an impact on the total rewards offering of your organization.

It’s official: the federal government is extending employment insurance benefits from 15 to 26 weeks. These new benefits apply to new claims beginning on December 18, 2022.

However, there’s no word yet on the EI Premium Reduction Program, which entitles employers with eligible disability plans to pay lower EI premium rates. Changes in that regard are expected as well as additional details, such as the time frame to comply with the new requirements.

Different options are available to organizations based on the disability insurance plan they offer their employees. They should start by adjusting their communications strategy to notify employees of this change. In the coming months, they may be required to review their plan to comply with the requirements of the EI Premium Reduction Program. For many organizations, this may be an opportunity to conduct an in-depth review of their income replacement plan offered to employees on disability leave. Speak with your group benefits consultant to consider the different scenarios and understand their implications.

The Canadian government has introduced the first stage of its national dental care plan while it works on a more comprehensive plan to be fully implemented in 2025.

The interim Canada Dental Benefit aims to help lower dental costs for eligible families earning less than $90,000. It’s intended for children under age 12 who do not have access to a private dental insurance plan. Depending on the family net income, a tax-free payment of $260, $390, or $650 is available for each eligible child for a lifetime maximum of two payments.

Since December 1, 2022, all private-sector employees working for federally regulated organizations are entitled to up to 10 days of medical leave with pay. Three days of paid medical leave is granted to employees after a 30-day qualifying period on December 31, 2022. Following the qualifying period, employees can continue to earn one day of paid medical leave for each month of continuous employment, up to 10 days per year.

Employers may request a medical certificate if an employee is absent for five consecutive days or longer. Employees who are not paid on an hourly basis (e.g., commission-based earnings) will be entitled to be paid at their regular rate.

Organizations should consider how to harmonize this new feature with their disability leave plans, based on the waiting period and the bank of sick days offered.

Our experts are monitoring the developments of these programs and how they might impact group benefit plans and HR policies and practices of your organization. For any questions or concerns, contact your Normandin Beaudry consultant or email us.