Chapter 1

What is a remote work compensation policy?

A remote work compensation policy is, simply put, a set of guidelines that formalizes a company’s pay strategy for remote workers. It aligns with a company’s stated values and often specifies which pay model they follow.


Typical aspects of a remote work compensation policy include:
  • The values behind the company’s remote work compensation policy
  • Pay rates for different roles and/or departments in the company – and how these are calculated
  • Legally-mandated country-specific deductions and contributions (if a company hires globally)
  • All applicable perks (e.g., training budget, home office equipment stipend, co-working allowance)
  • Reimbursable expenses – and how these can be claimed
Whatever it contains and however it is designed, an accessible and formalized remote work compensation policy makes the subject of remote pay easier to navigate and more transparent for everyone.
Is your company's remote pay strategy location-based, location-agnostic, or a hybrid strategy?
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Benefits of a remote work compensation policy
You may already have your own reason for creating a remote compensation policy for your company. However, if you're on the fence or in the exploratory stage and need to pitch to your boss and/or the C-suite, there are many benefits you can share.
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