London Daily

Focus on the big picture.
Friday, Jun 26, 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
Robert Jenrick Defends £5 Million Donation to Nigel Farage Amid Political Scrutiny
Plymouth Museum The Box Wins 2026 Art Fund Museum of the Year Award
UK Government Faces Backlash Over Plans to Use Former Military Sites for Asylum Accommodation
Labour Party Faces Pressure Over Cabinet Stability as Senior Figures Clash on Policy Direction
Heathrow Airport Forecasts Passenger Decline in 2026 as Costs and Climate Disruption Mount
UK Energy Regulator Approves Expansion of Long-Duration Storage to Boost Power System Resilience
Crown Estate Reports Third Consecutive Year of £1 Billion Profit as Debate Over Royal Finances Intensifies
Teenager Charged With Murder in Wales Following Death of 14-Year-Old Boy
Nottingham University Hospitals Maternity Failures Trigger Calls for Public Inquiry Into Patient Safety
EasyJet Rejects £4.9 Billion Takeover Offer From Castlelake but Keeps Door Open for Further Talks
Record Heatwave Triggers UK Transport and Infrastructure Strain as Heathrow Revises Passenger Forecast Downward
Ofgem Approves Sixteen Long-Duration Energy Storage Projects to Strengthen UK Grid Stability
Labour Government Faces Internal Tensions Over Cabinet Decisions and Net Zero Policy Direction
British Food and Drink Exports Fall to Decade Low Amid Trade Friction and US Tariffs
Great Britain Grid Operator Spends £10 Million to Stabilize Electricity Supply During Heatwave Demand Surge
UK Parliament Committee Calls for Urgent National Adaptation Strategy as Extreme Heat Strains Public Infrastructure
Record-Breaking Heatwave Pushes England’s National Health Service to Critical Incident Status as Hospitals Struggle With Surge in Emergencies
UK Government Launches Review of Voluntary National Insurance Contributions System
UK Planning Inspectorate Reports Key Infrastructure and Planning Milestones in Annual Review
UK Government Reviews Travel Expense Reimbursement Rates for Employers and Employees
Civil Nuclear Constabulary Launches National Digital Memorial for Officers Killed in Service
UK and US Expand Collaboration on Nuclear Fusion Research and Workforce Exchange
Environment Agency Secures £275,000 Enforcement Deal with Anglian Water Over Permit Breaches
Independent Inspector Flags Ongoing Failures in UK Home Office Border Case Management
UK Government Considers Zero VAT Rate on Land for Social Housing Development
Bank of England Reports Sharp Drop in Emissions and Warns on Climate-Driven Financial Risk
Consumer Confidence in the UK Falls at Fastest Quarterly Rate Since 2022
UK Borrowing Costs Rise Sharply on Gilt Markets Amid Fiscal and Political Concerns
UK Government Plans Legislation to Bring British Steel into Public Ownership
UK Government Secures £210 Million Nuclear Fuel Deal to Support Ukraine Energy Security
London Ambulance Service Reports Record Emergency Call Volume Amid Severe Heatwave
United Kingdom Faces Record June Heatwave as Temperatures Hit 36.7°C in Somerset
UK Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
UK Social Care Sector Sees Workforce Shift as Overseas Recruitment Masks Domestic Labour Decline
Nuffield Trust Warns UK Health Budgets Remain Vulnerable Despite Record Spending Levels
UK Coal Pension Surplus Debate Returns to Parliament as Reform UK MP Seeks Clarity on Distribution
UK MPs Consider E-Petition Calling for NHS Newborn Screening for Spinal Muscular Atrophy
UK Parliament Debates E-Petition Calling for Inquiry Into Pro-Israel Influence in Politics
UK Economy Grew 0.6 Percent in Q1 2026 but Business Sentiment Weakens Over Geopolitical Risks
UK Financial Services Bill Enters Lords Committee Stage With Expanded Ministerial Powers
UK Armed Forces Bill Advances With Plans for Defence Housing Service and Drone Defence Measures
UK Treasury Proposes Higher Electricity Generator Levy and Updated Mileage Allowance Rules
UK Parliament Debates Health Bill Amid Persistent GP Access and Patient Satisfaction Concerns
UK Financial Sanctions Regulator Signals Faster, Intelligence-Led Enforcement Strategy
British Chambers of Commerce Warns Business Confidence Crisis Is Dampening UK Investment
UK Parliament Debates Carbon Budget Order as Pressure Mounts on Net Zero Delivery
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
×