Actually it isn't. If you work 40hrs/wk, 50wks/year, that 0.2% salary increase is 4hrs worth. That isn't even including the cumulative benefits of subsequent years.

Spending 1hr negotiating 4hrs of income? It makes sense, no matter how much you make. Regardless, a 10% increase is composed of a number of 0.2% increases.

you forgot to factor in the negative implied equity of being "that guy who fought over a 0.2% pay increase." 10% is fifty of those. You'd never be hired again!

Very true, but when you're dealing with a financial firm that deals with margins, good employers should see that as a sign of being thorough.

Perhaps it's just a difference in business culture, but I would feel like a major asshole negotiating such benefits as a software developer.