Upto 18% Salary Cut For IT Employees Working From Home? Will Employees Agree? Yes!
As revealed by new reports, many of the major tech companies are preferring that their employees continue to work from home, but there’s a catch – a reduction in salaries.
Read on to find out how employees respond to the pay cut right here!
Tech Companies Offering Permanent Work From Home; But Salary Cut Comes Along
Companies started allowing their employees to work from home due to which employees started leaving the Bay Area and relocate from Silicon Valley. Some of these intend to come back once the danger subsides, but there also are some people who have chosen to relocate and work from home permanently.
Software company VMware is one of the companies that has now announced that it will be reducing the salaries of employees who have decided to work from home permanently and relocated to cities that are easy on the pocket. The reduction in their pay can be as much as 18%.
Even if the employee chooses to relocate within California, they will get their salaries slashed. As per reports, if the employees choose to relocate to San Diego or Los Angeles will have an 8% cut in their salary.
Employees Gladly Accept Pay Cut!
An employee from VMware has responded to this quite positively. He said that he would take the pay cut happily as tech employees are also given a bonus along with their salary.
He said, “It’s only a reduction on base, and base makes up half of my TC. So a net 6.5% decrease in my TC to move to a place where houses are 20% of the price and taxes alone make up ~5-6% difference? Sign me up.”
Another survey conducted across 2800 users in New York, Seattle, and the Bay Area has shown that 44% of the employees would gladly accept a pay cut if that meant that they could move somewhere less expensive.
Working from home has its benefits – we have reports that show that employees have managed to save Rs 5,520 per month and Rs 60,000 per year working from home.