Google: A New Salary Structure For Employees who choose WFM.
Google is trying out a peculiar salary model for its employees' post-pandemic. As its staff in the NY office decides whether to return to the office or work from home, Google might hand out a pay cut to employees based on their decision.
A salary calculator developed by Google will reportedly decide the pay cut. The calculator takes into account the area employees live in and their distance of commuting to the office. From what has been confirmed so far, those living in the same city as the Google offices will not experience any pay cut, even if they chose to work from home permanently.
Meanwhile, employees living in adjacent towns and areas and choosing to work from home will likely see a pay cut. These pay cuts have been reported to be as high as 25%.
An employee living in Stamford, Connecticut - an hour-long train rides from NY City - "would be paid 15% less if she worked from home." Other screenshots showed "5% and 10% differences in the Seattle, Boston and San Francisco areas."
A Google spokesperson confirmed the development, stating that the company's compensation packages "have always been determined by location."
The report mentions that a similar salary structure is being experimented with across Silicon Valley. Other tech majors, including Facebook and Twitter, have also introduced pay cuts for remote employees who now work from less expensive areas. Companies like Reddit and Zillow have shifted to location-based salary structures.