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.
