Discretionary Benefits: What They Are and the Top 10 Trends in 2025 in Canada

In today’s tight labour market, employers go beyond the basics to attract and retain talent. Discretionary benefits, once seen as extras, are now essential to standing out as a great place to work. These employee benefits can make a big difference in how individuals perceive their workplace and whether they feel loyal to their employer.

From wellness incentives to flexible schedules, companies are reimagining benefits. Let’s examine discretionary benefits in more detail and the key trends shaping their use in 2025.

Discretionary benefits are non-mandatory perks that employers choose to offer in addition to what’s legally required. While not essential from a legal standpoint, these offerings play a significant role in supporting employee well-being, job satisfaction, and retention.

They range widely depending on the company’s culture, goals, and budget. HR teams often design these packages to align with workforce expectations and stand out from competitors. In doing so, they help to build a workplace that feels supportive, progressive, and personalized to employee needs.

There’s a wide range of discretionary benefits available today, with companies tailoring options based on what their employees value most. Some popular choices include:

• Wellness initiatives: Gym membership reimbursements, mental health services, wellness stipends, and mindfulness tools
• Retirement savings plans: Employer matches for RPPs, group RRSPs, or TFSAs
• Expanded paid leave: Personal days, unlimited vacation policies, volunteer days, and extra time off for life events
• Skills development: Financial support for continued education, certifications, and online learning platforms
• Workplace flexibility: Remote work policies, flex hours, and condensed workweeks
• Childcare and family support: Subsidized daycare, on-site childcare, and family care resources
• Exclusive discounts: Reduced pricing on company services, local shops, or national partnerships
• Recognition and rewards: Employee bonuses, peer-nominated awards, and performance incentives

The line between discretionary and non-discretionary benefits comes down to legal obligation.

Non-discretionary benefits are mandatory. They include protections and minimum standards like public healthcare, workers’ compensation, and paid statutory holidays, which employers are required to provide by law.

Discretionary benefits, on the other hand, are entirely up to the employer. They’re not required by legislation but can offer powerful advantages when it comes to standing out in a crowded job market. These perks often serve as key differentiators when candidates are evaluating job offers.

As the workplace continues to evolve, so do employee expectations. Here are the leading discretionary benefit trends Canadian employers are embracing this year:

Mental health is front and center. Employers are offering increased therapy coverage, virtual counselling platforms, mental wellness stipends, burnout prevention resources, and mental health days. These benefits help employees to manage stress, anxiety, and overall emotional well-being in a supportive environment.

Work-life balance is critical. Flexible arrangements like hybrid schedules, compressed workweeks, and fully remote roles are becoming standard. Employers are also helping employees to work more comfortably from home with stipends for office furniture, technology upgrades, and productivity tools.

With inflation and rising debt, financial wellness is top of mind. Companies are offering access to certified advisors, budgeting tools, debt reduction support, emergency savings accounts, student loan repayment options, and retirement planning tools to promote long-term financial stability.

One-size-fits-all plans are being replaced by flexible spending accounts like Health Spending Accounts (HSAs) and Wellness Spending Accounts (WSAs). These accounts let employees choose how to allocate benefit dollars across services – from mental health to fitness to dental – making the experience more personal and valuable.

Employees want benefits that support their families. Companies are stepping up with fertility coverage, adoption assistance, surrogacy support, and top-ups for parental leave. Elder care resources are also expanding to help workers care for aging parents and multigenerational households.

Holistic well-being programs address physical, mental, and emotional health. Employers offer nutrition counselling, fitness app reimbursements, smoking cessation help, mindfulness classes, and virtual wellness platforms that provide resources for long-term health and habit-building outside the traditional healthcare system.

Career development benefits are essential for engagement and retention. Popular perks include tuition reimbursement, training stipends, access to online courses, leadership development programs, and structured mentorship opportunities that help employees to grow their skills and map out long-term goals.

Convenience matters. Telehealth services are now common, offering employees 24/7 access to general practitioners, therapists, and specialists from their devices. These platforms reduce time off for appointments and help employees to access timely care regardless of location or schedule.

Inclusive benefits meet the diverse needs of today’s workforce. This includes gender affirmation procedures, neurodiversity support, culturally-sensitive mental health care, inclusive leave policies, and flexible caregiving support, ensuring every employee feels seen, supported, and respected in the workplace.

Sustainability-focused perks align with employees’ values. Employers are offering incentives for eco-friendly commuting, carbon offset programs, paid time off for volunteering, and donation matching, helping workers to make a positive impact inside and outside of the workplace.

Discretionary benefits have evolved from simple add-ons to a core part of a company’s talent strategy. By offering thoughtful, relevant perks that reflect employee values, organizations can boost morale, retention, and recruitment outcomes.

In 2025, the focus is on flexibility, mental wellness, financial stability, and inclusivity. The best-performing companies will be the ones that listen to their workforce and adapt their offerings to meet real needs. Staying current with these trends can help employers to build a stronger, more resilient workplace culture.While it’s not considered a discretionary benefit, outplacement is another optional perk that companies offer to their employees. It helps employers to boost morale and increase engagement by letting staff know they’ll be supported in the event of a layoff. Contact a Careerminds expert today to learn all about our results-driven, modern approach to outplacement services!