Google employees who continue to work from home could earn less money, according to a company ‘work location tool’ that is based on geography.

The tool, launched in June,  adjusts compensation, salary, and benefits according to location.

"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 statement said, clarifying that pay would differ from city to city and state to state.

Google said that an employee's salary would not change if they moved from office work to being fully remote in the city where the office was located.

In a Silicon Valley-wide experiment, Facebook and Twitter also plan to cut pay for remote employees who move to less expensive areas.

However, other firms such as Reddit and Zillow are location-agnostic, citing advantages when it comes to hiring, retention and diversity.

Reuters reports that Google has offered employees a calculator that allows them to see the effects of a move to remote work.

Commute

Employees who commute from long distances could also experience pay cuts without changing their address. 

Google has also said that, post-pandemic, 60% of its employees will be working from offices a few days a week, while 20% of the employees will be in new work locations. The rest will work from home. Google has 140,000 employees globally.