When you get a job offer, the salary is just the beginning. Your package can add 30-40% more to your total compensation—if you know how to use it.
The Big Picture
Total compensation = Salary + Benefits
| Component | Typical Value |
|---|---|
| Salary | Your base pay |
| $5,000-$25,000/year | |
| 401k match | 3-6% of salary |
| PTO | 3-5 weeks |
| Other perks | Varies widely |
A $75,000 salary with good benefits can be worth $100,000+ total.
Health Insurance
What You're Choosing Between
| Plan Type | Premiums | Out-of-Pocket |
|---|---|---|
| HMO | Lower | Lower, but less flexibility |
| PPO | Higher | More flexibility |
| HDHP | Lowest | Highest, but -eligible |
Pro Tip
If you're healthy and want to build wealth, the HDHP + combo is often the best choice. You get triple tax advantages and can invest the money.
Key terms to understand:
- : What you pay monthly
- : What you pay before insurance kicks in
- : Fixed amount per visit
- : Percentage you pay after
- Out-of-pocket max: The most you'll pay in a year
Retirement Benefits
401(k) Match
Watch Out
Not taking your full is leaving free money on the table. This is the #1 benefits mistake people make.
Common match formulas:
- 100% match up to 3%
- 50% match up to 6%
- Dollar-for-dollar up to 4%
Example: Salary: $60,000 Match: 50% up to 6% Your contribution: $3,600 (6%) Company adds: $1,800 (free money!)
Want to go further? Check out our Wealth tier lessons on backdoor [[Roth IRA]] strategies and tax-efficient investing.
Paid Time Off (PTO)
| PTO Type | What to Know |
|---|---|
| Combined PTO | Vacation, sick, personal in one bank |
| Separate buckets | Different pools for each type |
| Unlimited PTO | Sounds great, but people often take less |
Do This
- Know your company's PTO policy
- Check if unused PTO rolls over or gets paid out
- Take your time off—it's part of your compensation!
Insurance Beyond Health
Most employers offer 1-2x salary free. You can usually buy more at group rates.
Disability Insurance
Short-term (STD) and long-term (LTD) disability protect your income if you can't work. Often 60% of salary.
Pro Tip
These become critical topics as your income grows. Our Wealth tier lesson on insurance deep dive covers when to supplement employer coverage.
Stock and Equity
| Benefit | What It Is |
|---|---|
| s | Stock grants that vest over time |
| Right to buy stock at a set price | |
| Buy stock at 10-15% discount |
If your company offers equity, our Wealth tier guide on equity compensation explains exactly how to handle RSUs, options, and ESPP for maximum value.
Underrated Benefits
Don't overlook these:
- FSA/Dependent Care FSA: Pre-tax money for healthcare/childcare
- Commuter benefits: Pre-tax transit/parking
- Tuition reimbursement: Free money for education
- Gym subsidies: Health & wellness spending
- Employee discounts: Can save hundreds yearly
- Professional development: Conferences, courses, certifications
The Benefits Audit
Quick Win
Review your benefits enrollment:
- Are you getting the full 401k match?
- Is your health plan right for your situation?
- Are you using FSA/HSA if eligible?
- Have you checked all available perks?
Most people leave $1,000-$5,000 on the table annually.