Google employees work from home may face pay cut

GUWAHATI: Google employees who worked in the same office before the epidemic might experience significant pay changes if they decide to work from home permanently, with lengthy commutes being hit worse, according to a company pay calculator reviewed by Reuters.

In fact, however, some distant workers, particularly those who drive great distances, may face salary cutbacks without changing their address.

It's an experiment that is going place across Silicon Valley, which is known for setting patterns for other major corporations.

Facebook and Twitter have also reduced compensation for remote workers who relocate to less costly locations, while smaller businesses such as Reddit and Zillow have moved to location-agnostic pay structures, citing benefits in terms of hiring, retention, and diversity.

Google, owned by Alphabet Inc., distinguishes out by providing employees with a calculator that allows them to see the impacts of a change.

"Our compensation packages have always been decided by geography, and we always pay at the top of the local market based on where an employee works," a Google spokesman said, noting that pay varies by city and state.

Jake Rosenfeld, a sociology professor at Washington University in St. Louis said, "What is obvious is that Google is under no obligation to do this,"

"By definition, Google has compensated these workers at 100% of their previous pay. So it is not like they can't afford to give their remote workers the same wages as their on-site counterparts," he added.

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According to screenshots obtained by Reuters from Google's internal salary calculator, an employee living in Stamford, Connecticut - an hour by train from New York City - would be paid 15% less if she worked from home.

Whereas a colleague from the same office living in New York City would not be affected. In the Seattle, Boston, and San Francisco areas, screenshots revealed 5% and 10% variances.

According to interviews with Google employees, remote workers may face salary losses of up to 25% if they moved from San Francisco to a region of the state that is almost as expensive, such as Lake Tahoe.

According to the calculator, metropolitan statistical areas, or CBSAs, are used by the US Census Bureau. Stamford, Connecticut, for example, is not included in the CBSA of New York City, despite the fact that many of its residents work in the city.

According to the spokesman, employees working in the New York City office will be paid the same as those working remotely from another New York City location, for example.

However, Google did not address the issue directly for commuters from Stamford, Connecticut.

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