This article is about Justworks EOR (Employer of Record). What product am I using?
Overview
If you have employees working in Canada through Justworks’ Employer of Record (EOR), your benefits are designed to provide reliable, locally compliant coverage without requiring you to manage the complexity behind the scenes.
Each year, Justworks reviews and renews your benefits plan with our insurance partner, Sun Life. This helps to ensure coverage keeps pace with rising healthcare costs, evolving workforce needs, and Canadian market standards while continuing to provide strong, consistent protection for employees and their families.
Your 2026 benefits renewal takes effect on April 1, 2026.
In this guide, you’ll learn:
- What a benefits renewal is and why it happens
- What’s changing this year (and what’s not)
- How premiums are determined
- What employers and employees can expect going forward
Note: Coverage should continue without interruption and should not require action from employers or employees.
What’s New for 2026
This year’s renewal includes enhancements based on employee feedback, including:
- Expanded dental coverage, including orthodontics for employees and eligible dependents
- Additional mental health plan offerings
What Does a “Benefits Renewal” Mean?
A benefits renewal is an annual review between your employer and the insurance provider (Sun Life).
During this process, insurers evaluate:
- How much the plan was used (claims activity)
- Changes in healthcare costs
- Broader insurance market trends
Based on this review, premiums may be adjusted for the upcoming year.
Note: A renewal does not mean your benefits are changing it simply ensures pricing stays aligned with real-world costs.
What’s Staying the Same in 2026
There are no changes to the core benefits experience, including your provider network, claims process, or overall coverage structure. Employees will continue to have access to:
- The same Sun Life coverage
- The same provider network
- The same claims process and tools
Employees can continue to:
- Submit claims as usual
- Access your benefits through Sun Life
- Use all included services without interruption
Do employers or employees need to take any action?
No action should be required.
Coverage will:
-
Automatically renew on April 1, 2026
Continue without any gaps or disruptions
- Employees can continue using their existing Sun Life insurance cards, which remain accessible through the Sun Life portal.
Employees can still make updates at any time, including:
- Submitting Qualifying Life Events (QLEs)
- Updating your beneficiaries
- Choosing to waive coverage (by submitting a refusal form)
Why Do Premiums Change?
Premium changes are a normal part of annual renewals across all insurance plans. Several factors influence pricing:
Claims Usage
If more healthcare services are used (e.g., prescriptions, specialist visits), overall plan costs increase.
Healthcare Costs & Inflation
The cost of medical care, medications, and services continues to rise each year.
Workforce Demographics
Factors like average age and family coverage levels can impact total risk and pricing.
Insurance Market Trends
Insurers adjust pricing based on broader industry patterns and risk assessments.
Plan Design
The type and level of benefits offered also affect cost.
Tip: Justworks works closely with insurance carriers to balance cost control with high-quality coverage.
How are health benefit premiums paid?
Under the Canada EOR model:
- Employers pay 100% of health benefit premiums
- Employees do not pay premiums through payroll deductions
Important: In some provinces, employer-paid premiums may be considered taxable income, which could affect your take-home pay slightly.
What About Life and Disability Benefits?
Additional benefits such as:
- Critical Illness
- Basic Life and Dependent Life
- AD&D
- Short-Term Disability (STD)
- Long-Term Disability (LTD)
…will continue without changes.
Premiums for these benefits:
- Are based on an employee’s salary
- May increase slightly (approximately 3–5%)
What to Expect in Future Renewals
Benefit renewals happen every year, and future changes may depend on:
- How much the plan is used (claims experience)
- Changes in employee demographics
- Ongoing healthcare cost trends
Justworks actively:
- Reviews market conditions
- Negotiates with carriers
- Works to maintain strong, stable coverage over time
Tip: Starting in 2026, employers may have more flexibility in how benefits are structured year to year, which can help employers manage long-term costs.
Key Takeaways
- A benefits renewal is a standard annual process, not a disruption.
- Coverage, provider access, and the overall claims experience remain consistent, with enhancements added to expand certain benefits.
- No action should be required for employers and employees — benefits renew automatically.
Small premium increases reflect industry-wide healthcare trends.