Google plans to impose pay cuts for employees who choose to work from home permanently: Report

Employees working in Google are likely to face a pay cut if they permanently switch to working remotely, says a report by Reuters. Those living farther away are likely to be the worst hit.

The search engine giant is following in the footsteps of firms like Facebook and Twitter, who have already imposed similar cuts for remote staffers who move to cheaper locations.

According to the report, employees who commute from longer distances and decide to stay back there are likely to be hit with cuts that could go up to 25%. The company devised an internal calculator in June that will help employees know the extent of likely cuts.

“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 told Reuters.

The report also adds that those living in the city the Google offices are in will not experience any pay cut, even if they choose to work from home permanently.

The screenshots of the calculator reveal that an employee living in Stamford, Connecticut – an hour from New York City by train – will be paid 15% less if she/he worked from home, while a colleague from the same office living in New York City will see no cut for working from home. There was 5% and 10% differences in the Seattle, Boston and San Francisco areas.

The calculator uses U.S. Census Bureau metropolitan statistical areas (CBSAs).