Google employees, who worked in the same office before the COVID-19 pandemic, and are now doing ‘work from home’ in a remote location, the company is taking a pay cut if they can’t ‘work from home permanently. Selecting Home. This has been revealed in a company’s salary calculator seen by Reuters.
Facebook and Twitter also cut salaries for remote workers
It’s an experiment taking place in Silicon Valley that often sets the trend for other large employers. Facebook and Twitter also cut salaries for remote workers moving to less expensive areas, while smaller companies, including Reddit and Zillow, have shifted to non-location-critical pay models.
Alphabet distinguishes itself by providing Google employees with a calculator that allows them to see the impact going forward. But in practice, some remote workers, especially those who commute long distances, may experience a pay cut without changing their address.
There is likely to be a reduction of about 10 percent.
A Google spokesperson said, “Our compensation packages have always been determined by location, and we always pay on top of the local market where an employee works.”
A Google employee, who asked not to be identified, usually comes to the Seattle office from a nearby county and is expected to take full-time work from home in their pay, according to estimates from the company’s work location tool, which launched in June. There is likely to be a reduction of about 10 percent.
The employee was considering remote work but decided to go to the office despite the two-hour commute. He said, “This pay cut is the same as my most recent promotion. I didn’t put in this effort to get promoted first and then get the same salary cut.
No deduction will be made in the salary of an associate of the same office
Screenshots of Google’s internal wage calculator seen by Reuters show that an employee living in Stamford, Connecticut – an hour by train from New York City – would be paid 15 percent less if she worked from home. Whereas, no deduction will be made in the salary of an associate of the same office while living in New York and working from home.
Screenshots showed a 5 percent and 10 percent difference in the Seattle, Boston, and San Francisco areas.
Interviews with Google employees indicate that remote work takes up to 25 percent of pay cuts if they leave San Francisco for a nearly expensive region of the state, such as Lake Tahoe.
A Google spokesperson said that…
the company will not change an employee’s salary on the basis that they have to move from office to a remote area of the same city in which the office is located. For example, the spokesperson said that employees working in a New York City office would be paid the same pay as employees working remotely from any other New York City location.
Google didn’t specifically address the problem for travelers from areas like Stamford.
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