Question 1

Do companies pay less for remote workers in cheaper cities?

Accepted Answer

Increasingly yes — major tech companies like Google, Meta, and Salesforce apply location-based pay adjustments. If you relocate from San Francisco to Austin, expect a 25-40% salary reduction at most large companies. Smaller companies often maintain the original salary.

Question 2

What is geographic pay and how does it work?

Accepted Answer

Geographic pay (or location-based pay) adjusts salaries based on local cost of living data. Companies typically use bands: Tier 1 (SF, NYC, Seattle = 100%), Tier 2 (Denver, Chicago, Austin = 75-85%), Tier 3 (smaller markets = 65-75%).

Question 3

What remote stipends are typical?

Accepted Answer

Common remote stipends: home office setup ($500-2,000 one-time), monthly internet/utilities ($50-150), coworking space ($100-400), and phone ($25-75). Total monthly stipends typically range from $100-500 at most companies.

Remote Salary Calculator — Cost of Living Salary Adjuster

Frequently Asked Questions

From the Blog