New Empathy report reveals how 'The Grief Tax' is draining health, focus, and finances in the workplace
Plan sponsors are being encouraged to expand bereavement-related support as new research from Empathy reveals grief’s deep and lasting effects on employees’ productivity, well-being, and finances.
The findings coincide with calls from the Funeral Service Association of Canada (FSAC) to reform the Canada Pension Plan (CPP) death benefit, drawing attention to the mounting burden on grieving workers.
According to Empathy’s ‘Grief Tax report,’ grief creates an invisible side job for employees, disrupting focus and draining time across up to 18 months.
Nearly nine out of ten respondents reported anxiety during grief, and over 90 percent experienced drops in productivity and concentration.
About majority faced at least one work-related consequence, including missed promotions, lower wages, or fear of losing employment or health insurance. Meanwhile, 79 percent considered quitting and 76 percent feared termination.
These challenges are especially acute among Millennials and Gen X—also known as the Sandwich Generation—who represent 67 percent of the workforce.
They face the highest burden, juggling career, childcare, and caregiving responsibilities while managing estate and funeral logistics.
These groups reported 40 percent more physical symptoms and 36 percent more emotional symptoms than other generations.
Despite recent changes to bereavement leave policies, the report indicates that current workplace supports remain inadequate.
Empathy CEO Ron Gura said the report shows that loss goes “beyond emotional and administrative challenges,” and that “there is a need for open conversation and understanding about the compounding effects grief can have within our homes and workplaces, and on our overall wellbeing.”
Broader recognition of mental health and grief in benefit design
The need for more robust bereavement support aligns with broader trends in workplace mental health strategy.
According to Benefits and Pensions Monitor, mental health workers play a critical role in fostering supportive work environments.
Christina Fuda, mental health first-aid coordinator at Ontario Shores Centre for Mental Health Sciences, stated that successful frameworks must go beyond staffing and said “Investing in mental health isn’t just about hiring a mental health professional – it’s about implementing thoughtful, strategic programs and support systems.”
Fuda pointed to the National Standard for Psychological Health and Safety in the Workplace as a useful guide and cited a 2021 report where 81 percent of Gen Z and 68 percent of millennials left jobs for mental health reasons.
She noted that larger organisations may benefit from retaining on-staff mental health professionals, while smaller ones should consider Employee Assistance Programs (EAPs), psychologists, or psychotherapists.
Grief also affects physical health. Empathy’s study found 66 percent of all respondents experienced panic attacks.
Executors—62 percent of whom were women—were especially affected, with 75 percent reporting panic attacks and 70 percent seeking medical or mental health care.
Other common symptoms included sleep disruption, headaches, cognitive strain, and withdrawal from social life. More than 65 percent said grief interfered with everyday tasks.
Financial strain reinforces urgency for death benefit reform
The average cost of loss-related expenses remained around $12,500 between 2022 and 2024. Half of respondents used personal savings, 55 percent relied on credit cards, and nearly 15 percent took out loans.
The FSAC, referencing Statistics Canada data showing more than 10 percent of seniors live below the poverty line, has renewed calls for the federal government to increase the CPP death benefit.
The current $2,500 benefit has not been adjusted since it was cut from over $3,500 in the late 1990s.
FSAC President Jeff Weafer said the amount is “frozen in time for 25 years” and inadequate in the face of rising costs.
“They’re hoping to rely on a death benefit or a Canada Pension benefit that our society and our government had guaranteed,” he told CityNews.
The CPP death benefit is a one-time payment to the deceased’s estate or eligible individuals. To qualify, the deceased must have made contributions for at least one-third of their contributory period (minimum three years) or for at least 10 years.
If the deceased resided in Quebec, CPP and QPP contributions may be combined.
Applications must be submitted within 60 days if an estate exists; otherwise, next of kin, funeral payers, or legal representatives may apply. Processing typically takes six to 12 weeks.
Plan sponsor considerations
With grief affecting performance, retention, and overall employee health, plan sponsors may consider the following:
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Evaluating bereavement leave policies to align with actual grief timelines
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Enhancing benefit plans to include access to grief-specific counselling
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Partnering with EAP providers that offer targeted bereavement and caregiver support
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Reviewing financial wellness programs in light of funeral and estate costs
As Empathy’s chief empathy officer David Kessler said, “There are universal truths to loss and how grief can manifest itself across generations.” Supporting employees through these experiences may reduce hidden costs for employers and foster a more resilient workplace.
