How to Compare Employee Benefits Beyond Salary

A job paying $75,000 with a solid health plan and a 5% retirement match can leave you better off than one paying $80,000 with neither. To compare offers fairly, put a rough dollar value on each benefit, using what you would actually use, and subtract the costs that come with each job.

Health insurance: compare the yearly total

Premiums are the obvious number, but they’re only part of the cost. For each plan, write down:

• your share of the premium per paycheck
• the deductible
• copays and coinsurance
• the out-of-pocket maximum
• whether your doctors and prescriptions are covered

Then estimate two scenarios: a quiet year (a checkup and a few prescriptions) and a rough year (you hit the out-of-pocket maximum). A plan with a low premium and a $6,000 deductible can be cheaper in the quiet year and much more expensive in the rough one. HealthCare.gov recommends comparing total yearly costs in exactly this way.

Ask HR for the Summary of Benefits and Coverage, a standardized document that makes plans easier to compare side by side. Also ask when coverage starts. Some employers make you wait 30 to 90 days, and you’ll need a bridge, such as COBRA from your old job or a short Marketplace plan.

If an offer pairs a high-deductible plan with a Health Savings Account, check whether the employer contributes to it. For 2026 you can put up to $4,400 into an HSA for self-only coverage or $8,750 for a family, and an employer contribution counts toward that cap.

Retirement: the match is part of your pay

An employer match is effectively extra salary, but only if you contribute enough to get it. A “100% match up to 4% of pay” on a $75,000 salary is worth $3,000 a year, provided you put in $3,000 yourself.

Check three details:

• Vesting. If the match vests over three years and you leave after two, you may forfeit some of it.
• Eligibility. Some plans make new hires wait before contributing or receiving the match.
• Fees and fund choices. These are in the plan documents; high-cost funds eat into returns over decades.

The 2026 limit for employee contributions to a 401(k) is $24,500, plus catch-up contributions if you’re 50 or older. Retirement Planning Essentials covers how workplace saving fits into a longer plan.

Time off and income protection

Count paid holidays, vacation, and sick days. Five extra days off has real value, roughly 2% of a year’s working days. Ask whether unused vacation is paid out when you leave, which depends on employer policy and state law.

Disability insurance is easy to overlook and can matter more than life insurance for someone with dependents. Ask whether short- and long-term disability coverage is included, what percentage of pay it replaces, and how long it lasts.

The rest of the picture

Then add the costs that come with each job:

• commuting time and money, or the savings from working remotely
• child care, if the schedule changes what you need
• required equipment or uniforms

Count perks like gym stipends, tuition help, or commuter benefits only if you’d really use them. A perk you wouldn’t pay for yourself isn’t worth its full sticker price to you.

Finally, estimate take-home pay for each offer after taxes, health premiums, and retirement contributions. That’s the number your monthly budget depends on; Creating a Personalized Budget shows how to build around it.

Ask for the benefit documents in writing and a reasonable deadline to decide. Employers expect questions, and a clear comparison beats a gut feeling about which offer “seems better.”

Sources

• HealthCare.gov: Your total costs for health care
• Department of Labor: What you should know about your retirement plan
• IRS: 401(k) limit increases to $24,500 for 2026
• IRS: Rev. Proc. 2025-19, 2026 HSA limits (Internal Revenue Bulletin 2025-21)

This article is for educational purposes and is not financial advice.