Jobs with no benefits, explained

At some point in your career, you may come across the dream job post: a rewarding opportunity complete with the perfect location, room for growth and great company culture. But then you notice it doesn’t have benefits, which raises important questions.

Whether you’re currently interviewing for a job with no benefits or want to learn more before applying to one, ask yourself: What should I consider before accepting?

These insights from experts will help you weigh your options.

But first in our guide, “Jobs with no benefits, explained,” here’s why employee benefits are so important.

To give you a sense of how much employer benefits are worth, a federal employment survey found that they make up about 30% of an employer’s total compensation cost. Therefore, benefits are a major incentive to employees and a major cost for employers.

So, what are job benefits? Job benefits generally include health insurance, paid time off or retirement savings options. Many companies offer a 401(k), which is an employer-sponsored retirement savings plan that allows you to save and invest money for retirement while receiving certain tax benefits. A company may also offer other benefits, such as free meals in the office, mental health days or daycare. These perks can make you second-guess accepting a job that doesn’t offer them.

In certain situations, benefits may not be offered, like when there’s a recession. Whether the lack of benefits is related to economic conditions or something else, it’s important to assess your own finances before deciding if you should accept one.

To determine the financial impact of accepting a job without benefits, it helps to have a budget that covers your current job, says Tim Jordan, a certified financial coach. 

Your budget will help you look at the numbers to see if accepting a job without benefits is a smart move. If you’re switching from a job with benefits to one without, you may find that a higher salary wouldn’t result in a true financial gain, Jordan says. That’s because you’ll be responsible for paying for your own insurance, contributing to a retirement plan and budgeting for unpaid time off. Your updated budget will make it much easier to manage those new costs.

Here are the biggest expenses you’ll need to calculate if you accept a job without benefits:

Health insurance coverage can vary widely depending on the plan you select. That’s why you should write down your specific health needs before getting quotes from potential insurers, says Ashley Patrick, a financial coach.

Do you take prescription medications? Do you require specialized treatment for a condition? Your answers to these questions can influence the type of health insurance plan you choose. From plan types to coverage, you have a lot of options. Make sure your needs are taken care of and that you’re not paying for coverage you don’t need.

For health and dental insurance, you can search your state’s marketplace to assess the monthly premiums for your medical needs, Jordan says.

“If you want to keep health, dental and vision insurance packaged together, contacting an insurance broker will be your best bet,” according to Jordan.

He recommends gathering three to five health insurance quotes. From there, you can add your premium, or monthly cost, into your budget. You’ll also be able to estimate how your new insurance coverage will impact your current medical spending, including medication and doctor visits.

Even if you don’t have an employer-sponsored retirement plan, Jordan says you should still save for retirement with an individual retirement account (IRA), which is a tax-advantaged investment account that individuals can open to help save for retirement.

A Roth IRA and a traditional IRA can help you save for retirement with tax advantages, but they work in different ways:

• Roth IRA: You contribute money you’ve already paid taxes on. Your investments then grow tax-free, and you can generally withdraw the money tax-free in retirement (as long as you meet certain conditions). 

• Traditional IRA: You may be able to deduct your contributions from your taxes in the year you make them. The money grows tax-deferred, but you pay income taxes when you withdraw it in retirement.

“The opportunity cost of not investing is too high,” Jordan says. “I strongly recommend investing in a Roth IRA or traditional IRA so you can continue to grow your money. Start with the same percentage you’re investing now and add that to your list of monthly expenses.”

If you want to invest more than the annual IRA limit, he recommends putting the additional funds into low-cost index funds that track the performance of the broader stock market. The IRA limit is $7,500 for 2025 ($8,600 if you’re over age 50). This money won’t get the same tax advantages, but your retirement savings will still grow over time.

If your current employer matches a percentage of your retirement savings, calculate this figure to help you better understand the financial loss, Jordan says. While this will reduce your retirement savings rate going forward, it won’t necessarily have an impact on your budget. That is, unless you choose to replace the loss with money from your salary.

If you won’t be paid for time off, you likely won’t take as much time off, Jordan says. But don’t be tempted to avoid taking vacation or sick time. That will quickly lead to burnout, he adds.

Do the math: Use an online paycheck calculator to get a very close estimate of how much your biweekly paycheck will be after taxes and withholdings for programs like Social Security and Medicare. Divide that by 10 days to calculate how much money you would make each workday at your new potential place of employment, Jordan says. Then multiply that by how many days you think you’ll take off.

That will give you the total cost of your time off. Then, to determine how much should go into a monthly budget to cover this, simply divide by 12. This number will give you a realistic idea of the impact on your budget. Then, you’ll be able to figure out if you can afford a well-deserved break should you end up accepting a job without benefits.

Now that you’ve determined the extra expenses you need to cover in your budget, the next step is to determine whether this is a good offer for you.

Jordan recommends using a paycheck calculator to see what your monthly income would be after state and federal taxes. Then, subtract the new monthly expenses (medical, retirement and vacation) you would have to get an idea of your real take-home pay. Finally, pull out your latest paychecks to compare this figure to your current monthly salary. Looking at these numbers side by side can help you get closer to your decision.

After you’ve calculated your new salary (after taxes and expenses) and compared it to your current salary, Jordan suggests you ask yourself a couple questions. Does the new salary cover your new expenses while still giving you room for savings? Are you coming out ahead with more cash flow?

If you’ll be in the same or better financial position with your new job with no benefits, then you may want to seriously consider accepting the offer. If not, your next step is to negotiate.

After receiving an offer for a full-time job with no benefits, don’t be afraid to negotiate a higher starting salary, Patrick says. “It doesn’t hurt to ask, and the worst they can do is tell you no.”

Here are a few tips for negotiating more pay for a job with no benefits:

• Tell your potential new employer what you currently earn, including benefits, and how much it would cost to replace those benefits, Jordan recommends. Then say, “Based on those amounts, I am going to need $X per year. Is this possible?”
• If a salary bump isn’t possible, ask for non-salary benefits, Patrick advises. These might include a health insurance stipend; reimbursements for day care, tuition or housing; moving expenses; flexible scheduling; some or more paid time off; or funding for professional development opportunities.
• It will likely be harder to get an increase in pay or benefits after you’ve started your new job, so be sure to have these conversations before you do.

If you end up accepting a job with no benefits, you’ll have to manage your own. Patrick calls this “the awareness bump.” You’re responsible for not only budgeting the money, but also for setting up your necessities like health insurance and paying for them on time each month.

After establishing your own self-funded benefits, Patrick recommends doing two important things that will re-create the experience of a job with benefits:

1. Create separate accounts for key expenses. Open a separate savings or checking account dedicated to each expense. For example: have one account specifically for your monthly insurance premiums. Multiple savings accounts can help you manage these expenses, ensuring you always have money for essential needs.

2. Automate payments and savings. When you have a job with benefits, you don’t have to do much to fund these expenses. Mimic that experience with automatic payments, like monthly contributions to an IRA, to ensure the money gets where it needs to go. Setting up automatic savings is a straightforward way to move money from your checking account into your savings without having to think about it.

Are you still asking yourself, “Should I take a job with no benefits?” If you take these steps, you should have a clear idea about the financial pros and cons of accepting one. Keep in mind that your job isn’t just about money, Patrick says. Making sure the job offer is financially sound isn’t the only consideration.

“Just because a job doesn’t have benefits doesn’t make it a bad financial decision,” Jordan says. “If your current job is making you unhappy, or if the opportunity to fulfill what you feel is your life’s purpose comes around, the benefits may not matter as much.”

By carefully weighing your options and considering your unique situation, you’ll be able to determine whether a job with no benefits is right for you, both career-wise and money-wise.

Our guide, “Jobs with no benefits explained,” is designed to help you make the best decisions for your career path and financial future. In summary, here are some factors to consider when deciding whether to take a job with no benefits:

• Compare total compensation, not just salary. Factor in the cost of replacing benefits like health insurance, retirement savings and paid time off.

• Calculate your true take-home pay after taxes and these added personal expenses to see what the role actually pays.

• Weigh financial impact against overall fit, including job satisfaction, growth opportunities and long-term career goals.

Whether you’re topping off your savings or covering a bill, it’s easy to move your money between 360 Checking and 360 Performance Savings accounts.