Pet health benefits: A financial lifeline for employees

As inflation and the high cost of living stretch household budgets, the rising cost of pet care is becoming harder for many owners to manage.

Just how expensive is it? Recent studies found that dog owners spend up to £2,400 a year on their pets, while cat owners spend about £2,250 annually.

The biggest annual expense for pet owners is usually food (kibble, wet food, treats, and dietary supplements), followed by routine veterinary care, like checkups, exams, and vaccinations.

Emergency care, including surgeries, ER visits, and chronic condition management, can also be a major financial hit, while pet insurance and preventive medications for flea, tick, and heartworm add to the yearly total.

Other recurring costs include grooming, dog walking, and pet sitting. And of course, pets need comfort and stimulation, which means investing in supplies and accessories like beds, leashes, crates, litter, toys, and scratching posts.

Here’s a rough estimate of how pet care costs break down annually for dogs, according to stats from Rover:

This is how much it costs to care for a cat each year, according to data from Rover.

Even with the steep costs, pet parents across generations are willing to reach deep into their pockets to care for their pet.

According to a recent Vetster survey, Gen X and Gen Z would spend approximately £4,500 to save their pet’s life. Baby boomers are more likely to have the money on hand (46%), whereas younger generations say they’d borrow, fundraise, or even sell valuables to cover the cost.

From parental leave, health spending accounts, and remote work support, employee benefits are evolving to reflect the realities of modern work and life.

When looking at their overall compensation packages, employers are taking note of the increasingly important role pets play in the lives of their employees. And with millennials now three times more likely to have a pet than a child, employers are seeking out benefits that reflect this lifestyle shift while helping to ease the cost for pet parents.

Pet-related benefits that help cover care costs can deliver significant savings for employees.

Pet insurance discounts generally provide coverage for costs related to emergencies, accidents, and illness.

Pet-friendly workplaces allow employees to bring their pets to work, saving on costs like dog walkers and dog sitters, which can save hundreds of dollars a month.

Pawternity leave gives employees time off for pet adoptions, vet visits, and even bereavement. While a newer benefit, it’s gaining traction with younger workers and can help conserve PTO, saving employees hundreds of dollars.

Pet healthcare benefits, like Vetster, can provide employees with access to video appointments with licensed veterinarians, offering medical advice, prescription services, and guidance on pet health, nutrition, and behaviour.

This service saves employees PTO and reduces travel costs like gas and vehicle wear. For those in rural areas without nearby clinics, it provides access to vet care and specialists they wouldn’t otherwise reach or afford. In some regions, prescription delivery is also available, offering even more savings on travel.

And because employers cover the cost for these pet healthcare benefits, employees don’t have to worry about the vet bill, giving them peace of mind and a sense of being valued in their workplace.

Looking to better meet the evolving needs of its workforce, Samsung introduced pet healthcare benefits to support pet-owning employees while helping them save on the rising costs of care.

Within its first 12 months, the program saved Samsung employees £13,400 on vet bills and 800 hours at the vet. Employees found the service so beneficial that it earned a 100% satisfaction rating across the business.

There are a number of ways employees can save on pet care costs by making the most of employer-provided benefits and using simple budgeting strategies.

At work, look into perks your company might already offer. Some employers partner with providers like Rover for pet sitting, Dogtopia for boarding and grooming, or Spot for pet insurance. If your partner’s employer also offers pet benefits, combine them for even more savings. Pet-friendly workplace policies, like “bring your dog to the office,” can also reduce the cost of sitters or dog walkers.

If telehealth benefits are available, use them for routine and preventive care. Regular check-ins can help you stay ahead of issues like diet, aging, or medication needs, often avoiding the much higher costs of emergency visits and procedures.

Everyday purchases are another area where savings add up. Buying food in bulk, taking advantage of multi-pet discounts on insurance or medication, and using delivery services can all reduce costs while saving time.

Finally, set a simple pet care budget. Tracking recurring expenses, adding a cushion for emergencies, and reviewing your budget annually, especially as pets age and insurance costs rise, can prevent unwelcome surprises.

Partner with Vetster and give your team 24/7 access to licensed virtual vets, at no cost to employees. Connect with us to learn how to bring this benefit to your workplace.