London Daily

Focus on the big picture.
Thursday, Sep 24, 2026

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.

Newsletter

Related Articles

0:00
0:00
Close
Royal Navy Commandos Complete Maritime Operations Training With US Navy SEALs
Vistry Profit Warning Adds to Concerns Over UK Housebuilding Conditions
UK Commits £343 Million to Major Expansion of Community Mental Health Services
Five Eyes Partners Back UK-Led Campaign Against Global Fraud Networks
UK Businesses Gain Full Access to £13 Trillion CPTPP Trading Bloc
UK Allocates Nearly £10 Billion for Council, Social and Affordable Housing
Chancellor John Healey Unveils Deregulation Drive to Accelerate UK Investment and Growth
Prime Minister Andy Burnham Sets Out Post-Brexit Foreign Policy Vision at United Nations
UK Reassesses Chagos Arrangements as Burnham Seeks New Path on Diego Garcia
Key Trends to Watch
Government’s “Buy British” Procurement Push Targets More Domestic Jobs and Industrial Capacity
Scotland Launches Four-Year Flood Resilience Programme With New Community Funding
Low-Income Renters Face Record Gap Between Housing Support and Private Rents
UK and US Test Torpedo Launch From British Undersea Drone in Defence Technology Milestone
Britain Pushes Artificial Intelligence Security Onto United Nations Security Council Agenda
Treasury Committee Defends Office for Budget Responsibility Independence Amid Fiscal Pressure
Scotland Records Eleven Per Cent Rise in Drug-Use Deaths as Cocaine and Nitazenes Drive Concern
Welsh Government Sets Four-Year Programme Around Health, Living Costs, Jobs and Housing
Study Finds Most People With High Blood Pressure in England Remain Undiagnosed
Britain Plans First National Workplace Health System to Tackle Economic Inactivity
England to Introduce Vocational GCSEs in Major Secondary Education Reform
UK Elevates Climate and Nature Risks to National Security Priority
Andy Burnham and Donald Trump Put Trade at Centre of First Major Bilateral Meeting
Andy Burnham and Ursula von der Leyen Push Ahead With Closer UK-European Union Economic Ties
UK Government Borrowing Jumps to Eighteen Point Three Billion Pounds Ahead of October Budget
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
×