As 2025 draws to a close, the landscape for employee benefits in Canada has seen several significant changes. For employers and HR advisors, staying on top of these shifts is critical. In this end-of-the-year article, we wanted to refresh your memory on what took place.
Below are three major developments that are reshaping benefit strategies across the country.
Expansion of Canadian Dental Care Plan (CDCP)
One of the biggest stories this year has been the expansion of the Canadian Dental Care Plan.
You can read our full article here: “The Canadian Dental Care Plan: Who’s Eligible & What’s Covered.”
A brief recap:
In March 2025, the federal government expanded eligibility to include millions more Canadians aged 18–64 who do not already have dental coverage.
Currently, about six million Canadians are covered under the CDCP. In British Columbia alone, over 720,000 people are now covered under the CDCP, and more than 430,000 have already received dental care.
What this means for employers/benefit plans.
For employees without company-sponsored dental insurance, CDCP may now offer a viable, government-backed alternative.
Moving ahead, employers may need to revisit communication with staff. You can clarify who remains eligible under CDCP vs. who should rely on employer-sponsored benefits.
Progress toward government-funded drug coverage (Pharmacare).
2025 has seen strong momentum toward broader publicly-funded drug coverage in Canada.
You can read our full article here: BC Signs Pharmacare Agreement for Free Medication.
A brief recap:
Under the new Pharmacare Act, the federal government has rolled out the first phase of a national drug-coverage program: beginning with contraception and diabetes medications, devices, and supplies.
Under this deal, nearly 550,000 BC residents with diabetes and about 1.3 million residents needing contraceptives will receive access to these medications at little or no cost.
Similar agreements have been reached in other provinces, reflecting the commitment to expand public access to essential medications.
Implications for employer-sponsored drug plans.
As public coverage expands for specific medications, some employees may rely less on employer drug coverage, possibly reducing utilization or claims. Employer plans will still be relevant for non-covered drugs, brand-name vs. generic choices, additional prescriptions, specialized medications, or refills beyond the public plan’s formulary.
Employers should re-evaluate drug coverage design. Consider “supplemental coverage” for medications not covered under public pharmacare, or focus on specialized drugs, faster access, and added-value features.
Updated sick-leave & “sick note” rules.
As of November 2025, provincially regulated employers in BC can no longer require a medical note for short-term health-related absences under certain conditions.
You can read our full article here: New Sick Note Rules in BC
A brief update:
Employers are still permitted to ask for “reasonably sufficient proof” of illness, but not necessarily a physician’s note. Acceptable proofs might include a prescription receipt, a hospital bracelet, or a signed statement from the employee.
While this change currently applies in BC, several other Canadian jurisdictions, including Ontario, have similar limits and are trending the same way.
What this means for employers and benefit administrators.
Employers should review and update their sick-leave, absence, and group benefit policies to reflect the new rules. This new sick-leave policy may become more employee-friendly, reducing barriers to taking needed time off, which in turn may support mental health, reduce presenteeism, and improve retention.
If you’re in BC, your benefits plans should shift to emphasize flexibility and support rather than rigid documentation requirements.
HR’s next steps.
As an HR leader, here are several proactive steps to take:
Audit your current benefit offerings.
With CDCP, pharmacare agreements, and updated sick-leave laws, some traditional offerings may overlap with public plans. Determine where your plans add unique value. Contact Navy & Sage Benefits, and we can help you review plans and decide what needs to change.
Update communications to employees.
Clearly explain how CDCP, pharmacare or insurance work together. Include who is eligible for each benefit and when they should use it.
Consider benefit plan redesign.
Shift from “core coverage” to “top-up/gap coverage” model: e.g., offer HSAs or supplemental plans for paramedical services, brand-name or specialty drugs not covered under public plans, vision, extended benefits, etc.
Revise HR policies and procedures.
Especially sick leave, absence documentation, proof of illness, and group benefit enrollment. You will need to reflect the legal changes.
Let Navy & Sage Benefits guide you into 2026.
2025 has been a year of transformation for Canadian employee benefits.
Employers must adapt thoughtfully, audit plans, rethink coverage, and align benefits with current laws and public programs. If you do that, there is a strong opportunity to deliver more meaningful, cost-effective, and competitive benefits packages in 2026.
Reach out to Navy & Sage Benefits today to go through your 2025 version, and let’s update your coverage to match these Canadian changes.
