Google Employees Face Pay Cut for Continuing to Work From Home

  • Google employees who opt to work from home indefinitely could face pay cuts of up to 25%.
  • An internal salary calculator shared with Reuters showed those with long commutes faced losses.
  • A spokesperson said the Google’s compensation packages had always been ‘determined by location.’

Google employees may face a pay cut if they decide to work from home indefinitely, according to a leaked internal salary calculator obtained by Reuters.

The tech giant has appeared broadly supportive of remote workers since the outbreak of COVID-19, and just last week approved almost 10,000 employee requests to work from home. The firm pushed back its planned return-to-office date in light of the rising number of Delta variant cases, from September to October 18.

But according to an internal pay calculator seen by Reuters, some remote employees – particularly those with long commutes – could face pay cuts without changing their addresses.

In one example, Reuters found that an employee living in Stamford, Connecticut – which is an hour’s commute from Google’s New York office – would be paid 15% less if they worked from home. Meanwhile, a colleague living in New York City would see no cut. In some cases reductions as high as 25% could come from a move away from San Francisco, Reuters reported.

One employee who spoke to the publication said they commuted into Google’s Seattle’s office from a nearby county and that they faced a pay cut of 10% if they worked from home full time.

They said: “It’s as high of a pay cut as I got for my most recent promotion.” They added: “I didn’t do all that hard work to get promoted to then take a pay cut.” 

A Google spokesperson told Reuters: “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.” 

Insider approached Google for further comment. 

In April, Facebook warned some staff may face a pay cut to continue working remotely in more affordable areas.

Jack Dorsey’s Twitter has also adopted a similar stance.

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