Earn more working at home

Taking Less Money for Work From Home? - Earn More Working at Home

Would you be willing to take a pay cut to work from home? Should you take a pay cut to work remotely? And, how do you earn more if you choose permanent home working?

We tackle these three questions in this article as more people find themselves working remotely and pondering the big post-pandemic question; Should I return to the office?

Why do remote workers accept a pay cut

Why remote works might accept a pay cut

Before COVID, a large proportion of remote workers were motivated to take a pay cut just for the opportunity to work from home.

Work from home jobs can be an excellent choice for you if you are seeking a better-work life balance or the flexibility to work from any location in the world

Technology has advanced quickly, and the pandemic has shown that a large portion of the working population could work effectively from their home.

Remote work cost savings

There are also several cost savings for home workers:

1. Save money on your daily commuting costs

Whether your mode of travel is a car, bus, or train, you have a daily expense for fuel or a ticket. Furthermore, you likely pay for parking if you travel to your work location by car.

The work-life balance also benefits you by saying goodbye to your commute, saving you hours every day, which you could spend with your family or simply in bed.

2. Lower your dry cleaning expenses

Office workers, retail staff, and many others find they need a suit, company uniform, or smart dress. You may have to purchase, dry clean, or launder this yourself, costing time and money.

3. Save on day-to-day expenses

Jobs that have a city centre location attract daily expenses, such as buying lunch and coffee. When your home is your office, you can make your lunch and flick on the kettle when you feel like a brew.

As you can see, remote work can create an offset that makes cutting pay, within reason, perfectly acceptable, leaving you with the same amount of money in your pocket at the end of the day.

The costs of working from home

While we have shown that pay cuts to work remotely can leave you no worse off, it would be irresponsible not to mention the potential costs of working from home.

When calculating if lower pay is acceptable, consider:

1. The cost of creating and maintaining your office space

Your employer is unlikely to cover expenses such as purchasing a desk, office chair, computer, or printer. You will also lose company perks, such as coffee covered by petty cash and ongoing costs for ink cartridges, pens, and printer paper.

2. Cost of living in a new location

If, for example, you live in central London and your company pays an attractive salary for working in this location, you will be quids-in if you move out of London. However, if you work for a non-London employer and want to move to London, reduced pay and higher living costs could cripple your finances.

Changing employer views on remote workers

Changing employer views of remote workers

Until recently, your chief executive officer has probably believed that people who conduct remote work are less productive and can’t be trusted.

However, many studies and the pandemic have shown employers that have employees who aren’t in the workplace are just-as, if not more, productive. Office workers encounter all sorts of distractions, including nattering with coworkers, smoking breaks, and so on.

Many employers and managers are letting go of their fear of losing control and eyes on their employees at all times. So, if you are looking for remote jobs and want to work from home permanently, there is no better time than right now.

Benefits for employers

Employers enjoy many benefits when they convert to a remote workforce, and these can help you create a case for not taking less pay:

1. Higher employee retention rates

A Catalyst study entitled Remote-Work Options Can Boost Productivity and Curb Burnout shows that employees are not only more productive but happier and less likely to experience burnout.

Employers can buck the trend of having employees who stay with them for less than two years, causing constant re-employing and training costs.

2. Lower real estate costs

Companies are paying huge amounts of money for office space. Expenses employers pay include rent, electricity, heating, office equipment, and much more.

3. Access to diverse talent

Businesses are no longer forced into selecting candidates from their local talent pool. They can hire nationally or internationally and efficiently hire the best candidates and those with scarce and in-demand skills.

As you can see, there is little risk for an employer and even a case for paying more for an employee who takes on a remote job.

Are you an employer looking to advertise a job for a work from home position?

How to earn more working from home

To ensure productive discussions on pay and salaries, start the process by researching the going rate for work from home jobs. You can discover the average salary for your job here.

You should also consider factors that affect salaries, including your location, seniority, and experience. Information that will help you build a case for a higher wage, includes recognition, awards, past performance figures, achievements, and qualifications.

Suppose you are giving notice and looking for a remote role elsewhere. In that case, there is mounting evidence that prospective employers won’t be shocked by your remote working preference, with 70% of LinkedIn searches being filtered by candidates to show remote-only jobs.

We also recommend reading these articles on work from home jobs:

Working remotely FAQs

Here we answer the questions you may have on salaries and working remotely.

Does working from home have to mean a lower salary?

Remote workers do not necessarily need to accept worse terms, and there are potential benefits for both the company and the employee.

Does working from home affect salary?

Working from home can affect your salary, and you should weigh up the cost savings, additional costs, and your work-life balance when making a decision.

Can your employer cut your pay?

It would be difficult for any employer to cut your pay if you have an employment contract in place. You might need to agree to a new contract, which you would be unlikely to do.

However, there is a valid case for reducing salaries if you want to make the move to remote working or if you cannot complete parts of your job from home, which may mean reducing your work hours. (This is not legal advice, just a point of view.)

What rights do you have and can you claim unfair dismissal?

There are potential issues surrounding indirect sex discrimination if an employee can show that the majority of home workers are female and receiving less pay than male professionals in the workplace.

Furthermore, if you are subject to constructive dismissal on grounds surrounding a pay cut, we recommend seeking independent advice on your rights. Acas.org.uk can provide the support and advice you need.

According to Acas, you can request flexible working if you are legally an employee, have worked for your employer for 26 weeks, and have made no other request in the past 12 months. Your employer should look at your request fairly and give you a decisions within three months.


About the Author: Daniel Aldridge

Daniel is driven by the conviction that comprehensive salary data should be accessible to everyone, ensuring empowered and informed career decisions at every stage. From fresh graduates to those contemplating a job switch or relocation, Daniel advocates for arming individuals with this vital knowledge to foster smarter choices.



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