Google employees could face pay cuts under remote working scheme – City A.M.

Google employees could experience pay cuts if they choose to work remotely on a permanent basis, with those who commute hit hardest.

In June, Google gave US employees access to a new Work Location Tool which allows them to see how moving would impact pay as part of plans to pay remote workers based on location. 

It has raised concerns that some remote workers will experience pay cuts without changing address with those who commute penalised more harshly than their colleagues.

Screenshots of Google’s salary calculator seen by Reuters show that employees who work remotely for the same office could be paid different amounts under the scheme. 

An employee living in Stamford, Connecticut, a popular location for commuters who work in New York City, would be paid 15% less if they worked from home, while a colleague working in the same office who lives in the City would see no cut if they chose to work remotely.

Another employee told Reuters that commuters to the Seattle office would likely see their pay cut by ten percent if they opted to work from home permanently.

A spokesperson for Google defended the scheme in comments to Reuters. They said: “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 the UK Google is preparing for a broad return to offices from the start of September, but has previously stated it expects up to 20 per cent of staff to continue to work remotely.

Read more: Debate: Should London businesses be hiring from across the world to work remotely?

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