Google To Cut Salary Of Employees Working from Home: The Begining Of A Disappointing Trend?

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Definitely, this could be a bummer for all Google employees who have developed a comfort zone in their homes. Google employees who work remotely may see their salary cut based on their location.

Google employees are typically compensated according to the location of their office. As if now a Google employee working remotely in San Francisco gets the same salary as someone who commutes to San Francisco daily from the outskirts of the city or from the neighboring city.

Google, however, is now considering changing that.

Google Employees’ Salary Cut: Big Picture

  • All Google employees who work remotely from a less expensive city could see a reduction in their salary, reports Reuter. As the pandemic made the companies adopt the work from home culture, Google is considering to redefine salary structure based on employees’ preferences and the flexibility provided.
  • Google’s new Work Location Tool shows employees what salary adjustments they can expect if they relocate or request remote work.
  • A Google employee living in Stamford would be paid 15% less if he opts for the work from home option permanently rather than spending one hour in train commute into New York City each day to reach the office.
  • But the new salary adjustment is not for every employee who chooses to work permanently from home. An employee who lives in New York and opts for remote working indefinitely will not see salary adjustments.
  • The city an employee chooses to work from home will play a key role in his salary cut.
  • Google pointed out that salaries were adjusted for employees who relocate depending on their location.

“Our compensation packages have always been determined by location, and we always pay at the top of the local market based on where an employee works from. Our new Work Location Tool was developed to help employees make informed decisions about which city or state they work from and any impact on compensation if they choose to relocate or work remotely,” Google’s spokesperson said.

  • Google is just one of many Silicon Valley companies that have offered remote-and hybrid-working options to employees during the Covid-era. However, in the new normal era, many employees are now preferring to continue working from home.
  • The company sent out the first round of work location applications responses earlier in August to employees who requested remote work or wish to move to another office.
  • Around 100,000 Google employees have applied for remote work. After careful consideration of each and everyone’s role and responsibilities, the company has approved 85% of such applications.

Food For Thought

The internet is flooded with debates over the implications of remote work for employees. According to a study, 47% of leaders are in favor of permanent work from home for employees.

At the same time, some have argued that employees who chose to relocate to cheaper towns and cities, or eschew the daily commute, should either pay more tax for the privilege of doing so or have their salary adjusted accordingly.

On the other hand, many argue that employees who work from home end up spending more money on heating, food, and equipment than if they were working in an office. They also claim that work from home is resulting in longer workdays as well. Therefore, their employer should cover these costs.

A lack of adequate workspaces for remote workers is another issue.

The pandemic has shown that very few office workers have access to a space they can use for productive work. Some researchers have argued that the burden of paying for office space moves from the employers to the workers when they are remote, meaning businesses should foot the bill for the extra housing costs of switching to remote work.

Whatever be the case, Google’s decision to cut salary for employees that opt for work from home from a city where living cost is cheaper could just be the beginning. We won’t be surprised if other companies soon decide to follow a similar trend for all their employees.


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