- Google to hand out pay cuts up to 25 percent to employees who chose to work from home permanently.
- Those working in the same city as they live will get no pay cut, even if they decide WFH.
Tech giant Google is trying out a peculiar salary for its employees post-pandemic. As its New York City office staff decides whether to return to the office or work from home, the company might cut employees’ salaries based on their decision.
A salary calculator developed by Google will decide the pay cut of employees. The calculator will calculate Google’s salary considering the area of employees living and commuting distance to the office.
Google Employees residing in the same city as the Google offices will not be given a pay cut, even if they chose WFH permanently. Meanwhile, employees living in adjacent towns and areas and working from home will likely receive their Google salary with a cut. These pay cuts could exceed the maximum of 25 percent.
According to a report of Reuters, which includes a screenshot of Google‘s internal salary calculator, revealed that employees living in New York City and working in Google NYC office would see no pay cut even if they WFH.
On the other side, any employee living in Stamford, Connecticut, an hour-long train ride away from NYC, would be paid 15 percent less in Google salary if they WFH. Additionally, 5 percent and 10 percent differences in the Seattle, Boston, and San Francisco areas.
The company’s spokesperson confirmed the news of pay cuts in Google salary, stating the company’s compensation packages have always been determined by location.
According to the Reuters report, other tech companies in Silicon Valley, including Facebook and Twitter, have also introduced pay cuts for remote employees who work from less expensive areas. Reddit and Zillow have also shifted to location-based salary structures.
However, the practical application of the Google salary cut model has some cons. A pay cut can negatively affect an employee’s financial wellbeing. Moreover, the travel distance should not be the primary factor for deciding pay cuts.