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Five Times You Should Actually Turn Down a Raise

Picture of Five Times You Should Actually Turn Down a Raise

5 min read//

When you land a good job, you’d like to think you can relax and just enjoy the stability of a regular paycheck. But, of course, the world doesn’t stay stagnant, and inflation guarantees that your salary is worth less every year. Enter the pay raise—that magical moment when your employer acknowledges your hard work and bumps your salary or wage, covering the increased cost of living and (hopefully) giving you some extra money to work with.

While most pay raises aren’t exactly life-changing (they hover between 2% and 3%, on average, though some industries might average 5% or higher), for the most part they’re welcome and cause for celebration. You might think accepting an offered raise is a no-brainer, but there are actually sometimes reasons why you should consider turning down a raise.

When it’s insufficient

Sometimes you get a raise because of work you’ve already done—it’s a reward and acknowledgment of your past performance, as well as an encouragement to keep it up. Sometimes, however, you’re offered a raise along with a shift in responsibilities. Maybe it’s a new title and promotion, or just a bunch of new things you’re supposed to do, but if the raise is minuscule compared to the new workload, it might be better to sit tight. Your salary is compensation, after all, in return for your time and effort. If the raise isn’t going to properly compensate you for the extra work, it might be smarter to turn it down and stay clear of all that extra work.

When it’s layoff season

If you get offered a raise in the midst of a period of instability and layoffs at your company, it might not be the automatic win you think it is. Workers with the highest compensation tend to be the first targets of layoffs for that very reason. If your raise is going to put you in the crosshairs of budget-cutting bosses, your enjoyment of that extra money might be short-lived. If you think that’s a possibility, it might be best to stay in the middle of the salary range and live to fight another day.

When it’s not about the money

Money is great—but it’s not the only form of compensation out there. If your job offers you more money, take a moment to ask yourself if you actually need more money—or would you be better off with something else? Every offer of a raise is essentially the beginning of a negotiation, so instead of just taking what’s on the table, consider negotiating your benefits instead. Maybe you’d rather work from home more often, or get more vacation time, or have the company pay for a degree program. If your current paycheck is more than sufficient for your needs, improving other aspects of your compensation might be a better call.

When there’s a price

If a raise comes with strings attached, consider those strings before you just accept the deal. If you’re expected to change the terms of your employment—by shifting from salary to hourly wages, or by signing a non-compete clause or a non-disparagement clause, or by agreeing to a disadvantageous new contract—turning down the raise to keep your current situation might be the smarter idea.

If the raise is also intended as a solution to a non-monetary problem at work, consider if you’d prefer the problem actually get solved instead of getting a small bump in your compensation. For example, if you’re being crushed under infinite overtime because of a never-ending sense of crisis at the company, getting some help so you can spend less time at the office might be preferable to more money that you don’t have time to enjoy anyway.

When it impacts your budget

If you rely on government programs for survival, getting a raise can actually be disastrous. It’s known as the “benefits cliff,” the income threshold where you become ineligible for benefits like food or housing assistance or subsidized healthcare. Getting a small raise that pushes your household income just past that cutoff would have an overall negative impact on your financial life, because you suddenly have to pay significantly more for many other aspects of your life.

As a result, if you rely on any kind of income-pegged government benefit to support yourself or your family, you have to crunch the numbers hard every time a raise comes your way—and the numbers may tell you that you’re actually better off making less.

This article appeared in lifehacker (https://lifehacker.com/work/when-to-turn-down-a-raise?_gl=1*xfda6x*_up*MQ..*_ga*OTkzNDI0NjkyLjE3MzE0ODIxODI.*_ga_7E851STSQZ*MTczMTQ4MjE4MS4xLjAuMTczMTQ4NDc0Ni4wLjAuMA..).

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