Benefits Package: What Remote Workers Should Expect
The combination of non-salary compensation offered to employees, including health insurance, retirement plans, paid time off, equity, and perks, which can vary significantly between remote and traditional employers.
Direct Answer
A benefits package encompasses all non-salary compensation provided by employers to their employees. For remote workers, this typically includes health insurance, retirement contributions, paid time off, and equity compensation, plus remote-specific benefits like home office stipends, coworking memberships, and internet reimbursements. The value and structure of benefits packages can vary dramatically between companies, especially when comparing traditional employers to remote-first organizations or when working internationally.
Definition
A benefits package is the complete set of non-wage compensations and perks that an employer provides to employees beyond their base salary. This package forms part of the total compensation and can include mandatory benefits (like health insurance in some jurisdictions), standard offerings (retirement plans, PTO), and company-specific perks designed to attract and retain talent. For remote workers, benefits packages increasingly include location-flexible options and remote work enablement benefits.
Key Facts
- Benefits packages typically represent 30-40% of an employee’s total compensation value
- Remote companies often replace traditional office perks with home office stipends and coworking allowances
- International remote workers may receive different benefits based on local regulations and tax implications
- Equity compensation in benefits packages can significantly increase total compensation, especially at startups and tech companies
- Benefits eligibility and coverage can differ substantially between full-time employees, part-time workers, and contractors
Common Benefits
Health Insurance
Most full-time employers offer medical, dental, and vision insurance, with the employer covering 50-100% of premiums. Remote companies may offer flexible health benefits or health stipends for international workers where traditional insurance doesn’t apply.
Retirement Plans
Common retirement benefits include 401(k) plans in the US with employer matching (typically 3-6%), pension schemes in Europe, or retirement contribution stipends for international workers. Some companies offer immediate vesting while others use vesting schedules.
Paid Time Off
Standard PTO includes vacation days (10-25 days annually), sick leave, holidays, and parental leave. Many remote-first companies offer unlimited PTO policies, though actual usage varies by company culture.
Equity Compensation
Stock options, RSUs (Restricted Stock Units), or profit-sharing plans are common in tech and startup environments. Equity can represent significant long-term value but comes with vesting schedules and performance considerations.
Remote-Specific Benefits
Home Office Stipend
Remote employers typically provide one-time setup stipends ($500-2,000) for purchasing desks, chairs, monitors, and other equipment, plus annual refresh budgets for upgrades and replacements.
Coworking Memberships
Many remote companies offer coworking space memberships or allowances ($100-500/month) for employees who prefer working outside their homes or need dedicated workspace.
Internet and Utilities
Monthly reimbursements for internet service ($50-100) and utilities are increasingly common, recognizing that remote work shifts costs from employer to employee.
Wellness and Mental Health
Remote-specific wellness benefits include virtual fitness memberships, mental health apps, therapy stipends, and ergonomic assessments to address the unique challenges of remote work.
Professional Development
Learning stipends, conference budgets, and online course subscriptions help remote workers maintain skills and connections without traditional office-based training.
Benefits for International Workers
International remote workers face unique benefits considerations:
Location-Based Variations: Companies may use Professional Employer Organizations (PEOs) or Employer of Record (EOR) services to provide compliant, localized benefits that meet each country’s legal requirements.
Health Coverage: International employees often receive private health insurance or healthcare stipends since traditional company plans don’t extend globally. Coverage quality and cost vary significantly by country.
Statutory Benefits: Each country mandates different minimum benefits (vacation days, parental leave, severance) which employers must meet or exceed. For example, EU countries typically require 20+ vacation days versus 10-15 in the US.
Currency and Tax: Benefits may be adjusted for purchasing power parity, and tax treatment of benefits varies by jurisdiction, affecting their actual value to employees.
Retirement Plans: International workers may receive retirement contribution stipends rather than country-specific plans, allowing flexibility but requiring individual retirement planning.
FAQ
How do I compare benefits packages between job offers?
Calculate the total compensation value by adding base salary, employer retirement contributions, equity value estimates, and the cash value of benefits like health insurance premiums covered. Use online calculators to estimate equity value. Consider intangible benefits like PTO and flexibility, assigning dollar values based on your priorities.
Are remote job benefits typically better or worse than office jobs?
Remote-specific benefits (home office stipends, coworking) often replace traditional office perks (free lunch, gym). Overall package quality depends more on company size, funding, and culture than remote status. However, remote-first companies often provide more flexible, personalized benefits since they can’t offer location-based perks.
What should contractors negotiate for instead of traditional benefits?
Contractors should negotiate higher hourly or project rates (typically 20-40% above employee equivalents) to compensate for lack of benefits. Consider requesting professional development budgets, equipment allowances, or performance bonuses. Some companies offer contractor-specific perks like coworking stipends or software subscriptions.
Can benefits packages change after I’m hired?
Yes, employers can modify benefits packages, though significant reductions are uncommon for existing employees. Annual open enrollment periods may bring plan changes, cost adjustments, or new offerings. Company acquisitions, funding changes, or policy updates can also affect benefits. Major reductions typically apply to new hires rather than current employees.
Last Updated: 2026-01-20