Beyond your pay: Benefits

In addition to wages, some employers reward their employees in extra ways.

Examples of benefits

  • Insurance: medical, dental, vision. disability, unemployment, worker’s compensation
  • Vacation pay
  • Holiday pay
  • Contribution to retirement (pension pay)
  • Profit sharing plans
  • Stock options
  • Bonuses

Are benefits required?

Federal law requires all employers to provide some of these benefits, such as unemployment insurance and worker’s compensation insurance. It’s up to the individual employer to decide what other benefits they want to offer.

Do employers pay?

Sometimes they pay the total cost of benefits such as holiday and vacation pay. But for other benefits, especially expensive ones like medical insurance, it’s common for the employer to pay part of the expense and ask the employee to pay the rest.

Do all employees receive benefits?

At some jobs, in order to qualify for certain benefits, you have to be a full-time employee (or work some minimum number of hours); in some cases, you have to work for the company for a certain length of time.

Should I participate in a company retirement plan?

Yes! It’s never too early to save for your retirement. If your employer offers a retirement plan — such as a 401(k) plan — consider yourself lucky and be sure to participate. See Save, Invest & Build Wealth to learn more.

Will my benefits change?

At many businesses, the benefits they’re willing to offer change from time to time.

Note: Every business is a little different when it comes to benefits, but benefits are always a plus. Before you take a job, find out what benefits your potential employer offers.

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