When a Reddit user landed a new job with a $20,000 salary bump, he thought he had made a great decision. The role came with more responsibilities, but also what seemed like a healthy pay raise.
What he didn't expect was for that big raise to result in just a $100 increase per paycheck.
Benefits Can Cancel Out Your Raise
“This is more of a warning than anything else,” the original poster wrote recently. He had looked over the benefits summary before accepting the offer, but didn't realize his new employer charged a significant spousal fee—and they applied it to each benefit plan: medical, dental and vision. “Turns out, they charge a spousal fee for each program, which is significant. My previous employer did not charge this.”
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He also accepted a verbal confirmation that the company contributed to a health savings account. They didn't. “So this will probably be a net loss in the long run when healthcare costs come up,” he added.
Others jumped in to share similar stories and advice. One noted, “Yep, that’s a good reminder, always compare total compensation not salary.”
Spousal Fees, Missing HSA Matches And Sticker Shock
One person broke it down further: “Spousal fee usually only applies if you answer yes to the ‘spouse is eligible for benefits with their own employer’ question during enrollment.” In this case, the fee was charged by default and added up to over $100 per check. Premiums alone were higher than expected, totaling about $269 more per check.
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Others explained that spousal surcharges are increasingly common, with some employers only covering the employee and making dependents fully out-of-pocket. “My company charges medical premiums based on salary bands,” said one commenter, “I got a small pay raise which bumped me into a higher band, causing my premiums to go up more than my raise and I ended up with a smaller check.”
Many were quick to point out that the tax burden wasn't likely the culprit. “There is no additional tax burden,” wrote one person. “We have a progressive/marginal tax bracket system.”
Total Compensation Matters
The key takeaway? Don't look at salary in isolation. As one person put it: “Total comp includes non-cash benefits as well. Do they offer [dependent care flexible spending accounts], commuter plans, more [paid time off], etc.? Get all the information.”
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Another added that he negotiated a $10,000 increase up front after asking for a detailed benefits cost sheet. “I never knew about such a thing until I worked for a payroll company,” he admitted.
Several people mentioned that some companies even refuse to disclose their full benefits details before an offer is accepted, calling it “proprietary information.”
While the original poster took responsibility, saying, “Not complaining, as I should have caught this in the fine print,” his story struck a nerve with many.
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