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Tech giant Google has informed its United States-based employees that those who choose to work from home permanently could face a pay cut.

While Google has no plans to implement this policy in the United Kingdom, employees with a long commute could have their salaries cut without changing their address. Those who work closer to the areas where Google offices are based will get a smaller pay cut compared to those who work further away.

With companies worldwide weighing their options when it comes to getting staff back permanently or letting them continue working from home, Google has managed to lift some eyebrows with their suggested policy.

However, Google is not the only Silicon Valley firm to do so. The BBC reports that other big tech companies including Microsoft, Facebook, and Twitter have offered less pay for employees based in locations where it is more inexpensive to live.

A Google spokesperson told the BBC that their compensation packages have always been determined by location and that they always pay at the top of the local market based on where an employee works from.

“Our new Work Location Tool was developed to help employees make informed decisions about which city or state they work from and any impact on compensation if they choose to relocate or work remotely.

Image credit: Tech Spot

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