Employer Contribution to Provincial Health Insurance

Employees in Alberta & British Columbia

1. Does the Government as my Employer contribute towards my provincial health insurance costs?
2. How much does the Government contribute and how are the Government’s contributions made?
3. What happens if I am on Leave Without Pay?
4. Will the Government, as my employer, continue to pay a share of my health insurance premium after I retire?

Does the Government as my Employer contribute towards my provincial health insurance costs?

If you live in the Provinces of Alberta or British Columbia, you are required to pay premiums for your provincial hospital and medical care insurance. In all other Provinces and Territories, the costs of your provincial health care is included in your taxes.

The Government, as employer, contributes towards provincial health insurance premium costs for Public Service employees and pensioners' living in Alberta and British Columbia.

How much does the Government contribute and how are the Government’s contributions made?

The government pays one-half of each employee’s contribution, regardless of whether you have single coverage or coverage for yourself and one or more dependants. Current employer and employee contribution rates are found in the document Provincial Health Insurance Plans.

The employees' share of Alberta and British Columbia health insurance premiums are deducted from employees’ salaries. These are then sent to the provincial authorities along with the employer's share of the required contributions.

NOTE: Alberta and British Columbia allow for provincial health insurance premiums to be paid at reduced rates for low-income earners. Information on eligibility should be obtained from the provincial authorities. If you are eligible to pay subsidized rates, you must pay your premiums directly to the provincial health plans. At the end of the year, you can apply for the appropriate employer contribution. Your compensation advisor will advise you of how to apply.

The employer's contribution towards your health insurance premiums is a taxable benefit.

What happens if I am on Leave Without Pay?

The employer contribution to your provincial health insurance costs is not payable for any full calendar month when you are on leave without pay. You must arrange to pay your full premiums directly to the provincial authorities if you are on LWOP for more than one full calendar month. Consult your compensation advisor if you are proceeding on leave without pay.

Will the Government, as my employer, continue to pay a share of my health insurance premium after I retire?

Yes.