In a recent statement, Google stated that they might impose a pay cut for Google employees that are working from home. Google employee’s salaries can be seen different changes in the coming days if they switch to work from home permanently according to a company pay calculator. The company’s new rule to pay less for the employees who are working remotely from low-cost regions, the pay cut will be only for the employee who was decided to work remotely instead of a two-hour commute.
“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,” in a statement to the press, a Google spokesperson said that pay will differ from city to city and state-to-state.
This pay cut depends on the remote employees who work from long distances without changing their address. Google has always paid their workers 100% wages, it is not that they cannot afford to pay their workers who are working remotely the same they are used to receive. The pay cut depends on the location of the employee if they are working remotely, which is around 10% to 15% less. Google employees indicate the pay cut around 25% if they are working remotely from a state which is far and expensive.
Pay cut for Google employees explained:
Interviews suggest that some Google employees are being forced to cut their pay by as much as 25% if they leave San Francisco for a more expensive area of the state. This means, in Lake Tahoe’s case, you could go from making $100k/year down to just over $75k per year with no reason given other than proximity.
The company will not be changing employee’s salaries if their office location is in the same state as their home location even if they’re working full time in an office or working remotely from home. Google will be providing a calculator to check the pay cut-off if they are moving to more expensive places. Google has extended the work from home till October and all the employees should be vaccinated 100%.
The employees who have planned to work from home permanently have decided to work from the office so that the pay cut will not be affecting their families. Usually, employees working within New York City will be paid 100% wages even if they are working remotely. But this problem occurs if the employee is in Stamford, Connecticut, and other places. Many other tech companies like Facebook and Twitter are also following the pay cut policy for remote employees who are working from less expensive areas.
Google has made a decision on how they will pay their employees who work from home. The company’s new rule to pay less for the employees who are working remotely from low-cost regions, the pay cut will be only for the employee who was decided to work remotely instead of a two-hour commute.
Employees with this change in policy have to decide if they want remote work or not and then after that it is up to them whether they want to stay at Google and take a salary reduction or leave and go back into an office environment. According to one person familiar with the situation, “Google’s going through some changes now so there might be opportunities people wouldn’t have seen before.”