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Working from home for a London company? Then expect a pay cut

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Working from home? Then expect a pay cut, as nearly one in ten London companies plans to cut the capital’s pay rise

  • 11% stop salary increase for London workers who continue to work from home
  • 28% of employers plan to hire staff to work remotely permanently










Nearly one in ten employers in the capital have dropped – or are planning to scrap – London’s compensation allowance on salaries for remote workers.

An exclusive survey of more than 22,700 companies by recruitment agency Hays found that 11 percent will cut the pay raise for London workers who continue to work from home.

The survey also found that 28 percent of employers plan to hire staff to work remotely permanently, which was more than double the number in a previous survey.

Wages in London: One in ten companies stop the pay rise for London employees who work WFH

Many companies plan to allow employees to work ‘flexibly’: to the office on some days of the week and at home on other days.

There has been some debate about whether those who continue to work from home should lower their salaries because they don’t have to pay travel expenses.

It was reported last month that officials in Whitehall held talks about abolishing the weighting in London for officials who do not want to return to the workplace.

Simon Winfield, a chief executive at Hays, said: ‘As employers adapt their workforce plans to a post-pandemic world, it’s encouraging to see more than a quarter of people looking for outside positions.’

He said this gives employers “access to a larger talent pool” – such as those with accessibility issues – “at a time when competition for staff is fierce.”

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