Google workers who transition to full-time remote working could see a pay cut, especially if they are living in an area with a lower cost of living.
Google has provided employees with a calculator that allows them to see how their income will be impacted by moving. However, some workers who may commute to the office from longer distances could see a pay cut despite not changing their address.
“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 said.
One employee stated that they commute to the Seattle office from a nearby county, but would likely see a 10% pay cut when working from home full-time according to Google’s Work Location Tool.
Although the worker considered moving to a full-time remote arrangement, they decided to continue making the two-hour commute into the office to avoid a pay cut.
“It’s as high of a pay cut as I got for my most recent promotion,” the employee said. “I didn’t do all that hard work to get promoted to then take a pay cut.”
According to Washington University sociology professor Jake Rosenfeld, this method could significantly impact workers, particularly those with families.
“Google has paid these workers at 100% of their prior wage, by definition,” said Rosenfeld. “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.”