Rubén Andrés
WriterWriter at Xataka. I've been working remotely for more than a decade and I'm a strong advocate of technology as a way to improve our lives. Full-time addict of black, sugar-free coffee.
The number of employees working 100% remotely is declining as companies increasingly adopt hybrid work models and, in many cases, encourage a return to on-site work.
Notably, a recent study by the National Bureau of Economic Research found that employees are willing to give up a portion of their salary or accept lower salary offers in exchange for the option to continue working from home.
Pay cuts of up to 25%. The NBER study analyzed how much employees value remote work. The assessment provides insight into the actual value employees place on working remotely, especially as in-person and hybrid models have become the most common options.
Interestingly, the study revealed that employees were willing to accept salary reductions of up to 25% on average in exchange for not having to go into the office. However, as the number of remote work days decreased, the percentage of salary that employees were willing to forgo also dropped, settling between 15% and 20% of their total salary.
Different results. The NBER study isn’t the only one to evaluate this situation. In fact, another recent survey suggests that 40% of participants would trade 5% or more of their salaries to work remotely. What’s more, 9% of workers surveyed would accept a pay cut of 20% or more.
However, it’s important to note that remote options have predominantly been available to highly qualified professionals with higher salaries. As such, the potential salary cut would be applied to high wages.
Supply and demand. According to a Neat report, 14% of the U.S. workforce works from home. Additionally, a Buffer study found that 98% of employees preferred to work from home due to frequent interruptions and the time spent commuting to the office.
However, the number of job listings that include remote work decreased in 2024. According to the NBER, the reduction in remote job availability has led to remote work being perceived as a more valuable option than previously estimated, particularly within the technology sector.
An excuse to lower salaries? The NBER study highlights an important debate regarding pay differentials among employees. Those with remote work arrangements don’t exhibit significant pay differences compared to their in-office colleagues.
This raises the possibility that companies could lower wages for remote positions on the pretext of pay differentials. For instance, they could offer lower pay in exchange for non-monetary benefits like flexible hours that their on-site counterparts might not enjoy. However, this isn’t happening yet.
According to the NBER study, salary equalization indicates that tech companies are still adapting to the new labor landscape. They’re also competing to retain talent by offering similar salaries to employees working remotely or on-site.
An advantage for small and medium companies. Addeco’s 2025 Salary Guide reveals that SMEs struggle to compete with the salary ranges of large tech companies. As a result, remote work provides them with an opportunity to attract talent who may not find remote job offers from bigger entities, which have largely abandoned remote options.
In fact, the NBER study also shows a trend where skilled employees may be willing to accept a lower salary from an SME in exchange for the ability to work from home. This dynamic helps level the playing field for SMEs in attracting talent.
Image | Raj Rana
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