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Pay cuts for home workers

According to the 150 business leaders and organisations who responded to CIPHR’s survey, 68% of those who currently pay their staff a ‘location allowance’ are considering whether or not to cut the salary of those staff who choose to work from home, even though half of the 150 business leaders and organisations had admittedly made savings through home working. A staggering 86% revealed that they had already postponed, temporarily reduced or stopped other location premiums and payments such as the London Living Wage. From the survey, 39% of employers were more inclined to cut the wages of fully remote workers compared to the 29% of employers who would consider cutting the wages of hybrid workers.

The findings of a separate survey revealed that one-third of employers expected their full-time staff to return to the office full-time post-pandemic.