Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Would you accept being paid less to work remotely?

Would you accept being paid less to work remotely?

New plans could see Google employees who choose remote working paid less according to their location and cost of living.

The COVID-19 pandemic has forever changed work habits and brought working remotely firmly into the mainstream. It has also spurred on an exodus of workers leaving large cities for a better work-life balance.

But for employees of tech giant Google, the choice to "work from home" indefinitely means making certain calculations before signing an amendment to their employment contract, according to Reuters.

Google has made a calculator available to its employees to estimate their future salaries based on their place of residence.

The difference in pay between large metropolises and suburban cities can be significant to the point that some employees may be forced to opt to return to the office.

Effectively a pay cut


"What's clear is that Google doesn't have to do this," Jake Rosenfeld, a sociology professor at Washington University in St. Louis who researches pay determination, told Reuters.

"Google has paid these workers at 100 per cent of their prior wage, by definition. So it's not like they can't afford to pay their workers who choose to work remotely the same that they are used to receiving," he added.

Reuters found that an employee in Google’s New York office who chose to move an hour by train away to Stamford, Connecticut, would be paid 15 per cent less if he chose to work remotely.

A San Francisco employee living near Lake Tahoe would lose 25 per cent, according to the calculator.

On the other hand, an employee at either headquarters in San Francisco or New York who teleworked from their home in these metropolises would be paid the same salary as their colleagues who physically go to the office.

"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," a Google spokesperson told the news agency.

Employees work in pods at the Google office in Sydney, Australia.


A new trend across Silicon Valley?


After the pandemic was officially declared, Google worked on a number of ideas to adapt to lockdown and remote working.

"At Google, we’ve been an advocate of flexible working for our employees for some time and there are a number of practices we’ve put in place to establish a successful flexible working approach across our business that encompasses all employees," the firm claimed back in May 2020.

"We worked with Timewise, a leading flexible working consultancy, to shape our approach and policies".

The company recently estimated that 20 per cent of its 140,000 employees worldwide will opt for full-time teleworking and as many again will request their transfer to another office.

Yet, this new situation could mean that many employees tempted by teleworking will think twice about it.

According to Reuters, some Google employees who had considered teleworking by moving away from cities have already given up on their plan.

Google is not the only company to implement such a policy of wage differentiation, Reuters reported.

Facebook, Linkedin, and Twitter would like to do the same but without providing an online calculator.

Recently, Morgan Stanley CEO, James Gorman, also expressed his wish to see employees come back to the office or face wage cuts.

On the other hand, smaller tech companies such as Reddit or Zillow ZG have decided not to adjust their remote employees’ pay.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
×