Remote workers are accepting lower salaries in order to work from home. Some are taking as much as 5% to 15% less pay to do so, while other employers are reversing the strategy to entice workers to come to the office at higher salaries

The Trade-Off: Remote Work for Lower Pay?

As more major employers push for a return to the office, many workers have pushed back, preferring to continue working remotely. Some companies have adapted by offering remote or hybrid roles—but often with a catch: lower salaries.

According to Robert Half’s 2025 U.S. Hiring Outlook, nearly half of managers expect challenges in meeting candidates’ salary expectations. When pay negotiations hit a deadlock, many employers are using remote and hybrid work as bargaining chips to close the gap.

Some candidates are willing to accept 5% to 15% less pay for the ability to work remotely, says Theresa L. Fesinstine, founder of HR advisory peoplepower.ai.

“There’s this unspoken exchange rate between flexibility and compensation,” Fesinstine told Fortune. “For some candidates, it’s a significant tradeoff—especially for those who prioritize work-life balance or save money by cutting their commute.”

The Risks of Paying Remote Workers Less

While offering lower salaries for remote work might help companies secure talent in the short term, it could create bigger problems down the line.

Amy Spurling, CEO of Compt, warns that 2025 could bring a “second Great Resignation” following years of hiring freezes, benefits cuts, and forced return-to-office policies.

“If you're trying to lowball remote workers, you're about to face a harsh reality,” Spurling said. “2025 is going to be a ‘find out’ year for companies that thought they could replace competitive pay with remote work perks.”

A PwC report projects a 28% increase in workers planning to change jobs—up from 19% during the 2022 Great Resignation.

Beyond retention risks, paying remote employees less also raises pay equity concerns.

Sara Kobilka, a communications and education consultant, calls the practice a “dangerous trend”, though she accepted a lower-paying job to escape a toxic workplace.

“Yes, people have the freedom to apply for lower-paying jobs in exchange for flexibility,” Kobilka wrote on LinkedIn. “But that should not justify systematically underpaying remote workers.”