Is Google imposing pay cuts on its remote employees?

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 Is Google imposing pay cuts on its remote employees?
Image source: A view of Googleplex – the head office of Google located in Mountain View, California. © Spvvkr | Me

The employees of search engine Google based in the same office could see different changes in pay based on their locations, if they switch to working from home permanently, reports suggest.

Alphabet Inc's Google (NASDAQ:GOOGL) has offered its employees a calculator that allows them to see the effect on their salaries if they move to more remote areas, according to a news report by Reuters. The remote employees, especially those who commute from long distances, may see pay cuts if they don’t change their address, it added.

The report quoted Google spokesperson as saying, "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."

According to unnamed sources working at the company, who have been quoted by the wire service, if an employee works at Seattle office from a nearby county, the worker is likely to see his or her salary truncated by about 10% by working from home on a full-time basis. The employee in question could have seen his recent increment accompanying his promotion being wiped off, if he/she didn’t commute to office.


Is Google imposing pay cuts on its remote employees?


The report cites that remote Google staff are taking pay cuts as high as 25%. However, it is said that the company wouldn’t tweak the salaries of those remote workers who stay in the same city as their office location.

Other companies, such as Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) have also, previously cut the salaries of the people who worked from remote locations.

Google is known for its employee-friendly and world-class infrastructure. Many employees who have worked with Google, call it a fun place to work. The company offers a gamut of employee perks, such as free, organic, chef-prepared meals, free health and dental, hybrid car subsidies, nap pods, video games, table tennis, on-site physicians among other things.


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