Alphabet Inc (NASDAQ: GOOGL) has released a new pay calculator for its employees describing potential pay cuts for those who opt to work remotely (work from home or any other location). In addition, the company’s early results indicate it will penalize its suburban staffers.
Pay cut depends on the location
The media report or information obtained by Reuters indicates that Google employees who earlier used to spend an hour commute to the company’s Manhattan offices from Stamford are likely to see a cut in the salary by around 15% if the employees choose to work from home. On the other hand, the employees who live within NYC’s five and opt to work from home permanently would not see any pay cut. Reuters further stated that based on their information, the company is likely to cut 5 percent and 10% percent of the salary for employees living in the Seattle, Boston, and San Francisco areas.
Moreover, Google further warned its employees who moved away far away from the office could face higher pay cuts. In addition, an employee who moved to California from San Francisco would witness a pay cut of almost 25 percent.
Other tech companies will follow
There is considerable debate amongst the various tech companies about remote work (work from home or location) and compensation. In line with Google, Twitter, Facebook, and LinkedIn warned all their employees who intend to move out from New York and San Francisco’s expensive cities would see the pay cut. But, on the other hand, the small tech companies would pay the same compensation regardless of where the employees are located.
Google stated that the location always determines its compensation package, and the company would pay at the top of the local market based on where an employee works. Google’s new compensation is likely to impact most acutely, including families. Google employs almost 14,000 workforces globally. The new structure would apply only to those employees who opt to work from home or other remote locations after the pandemic. As per the company, the pay calculator uses the U.S. Census Bureau metropolitan statistical areas for calculating compensation.
