pay cut vs benefits

how would one calculate a possible new job with a serious pay cut but has real benefits?

i currently work for a family-owned company that offers ZERO benefits. absolutely nothing. if i don't show up, i don't get paid.

how would i do the math, so to speak, if i am willing to take a job for a lot less money (i don't make all that much to begin with), but this other possible job would offer full benefits: 401(k), medical, dental, vision, paid time off, i also believe they offer group life insurance.

pay cut vs benefits

im not great at this either, but you know what you need to live. Full benefits are not free, you pay part of the health/dental, vision etc. To me a 401 is only good if they match, it is money pre tax. Otherwise take the $$ and invest elsewhere

You would have to know, what your salary will be, how much you will be paying from you paycheck for the benefits.


if in the end you can still live off the income and get paid time off, health etc its good.


PS I work for a company that offers PTO, horrible medical coverage, no vision and no benifits. the 401 is not matched so no one takes part in it. Plus, in the past, my company collected the pre tax $$ for the 401K and forgot to deposit it into peoples 401 K

Message edited 10/11/2016 5:25:28 PM.

pay cut vs benefits

It really depends on the actual benefits (% contributed to 401k, how much they put in for medical and how good the medical is and how low/high deductibles, etc).

That being said, from a company standpoint, my old company used to add 30% on top of salary to cover benefits when bidding jobs and stuff. And we had pretty run of the mill benefits.