Remote salary guide: location-based pay and how to negotiate

How do companies decide what to pay remote employees?

There's no standard, which is why offers can look so different. Most companies fall into one of three camps, and the job post or recruiter should be able to tell you which.

• One rate for the role. Everyone in the same job and level earns the same, wherever they live. It's the simplest model, and the kindest to people in lower-cost places.
• Location-based pay. Your salary moves with the cost of labour where you live, usually through a calculator or city tiers. Moving can raise it or cut it.
• Country or tier bands. Countries are grouped into a few bands, and each band has its own range. It sits somewhere between the other two.

Do remote jobs pay less than office jobs?

Not by default. It comes down to the company's model, your level and the market for your skills. Some remote jobs pay exactly what the office version would in the company's home city, and some adjust for where you live.

A fair way to judge an offer is to compare it with the same job in your own area, then count what remote work saves you: commuting, lunches, maybe rent. Ask the employer which model they use before you compare numbers. You can see how real roles are paid by browsing remote jobs in the United States or by category, where we show the salary whenever the source provides it.

What's the difference between an employee, a contractor and an EOR hire?

• Employee: you work for a company that withholds your taxes and, in many countries, provides things like paid leave, health cover and a pension.
• Contractor: you invoice the company as a self-employed person. You usually handle your own taxes and insurance, and you don't get the employee benefits your country gives. The rules differ by country, for example the IRS guidance on independent contractors in the United States and the GOV.UK employment status checker in the United Kingdom.
• Employer of record (EOR): a third-party company that legally employs you for a foreign company, so you get a local contract, taxes and benefits while you do your day-to-day work for the foreign one. It's similar to a professional employer organization.

What should I compare when I get a remote offer?

Two offers with the same salary can be worth very different amounts. Put each of these side by side.

1. Base pay and bonus, and whether the bonus is guaranteed or up to them.
2. Who pays tax and social contributions, and what that costs you.
3. Paid holiday, sick leave and parental leave, or none at all if you're a contractor.
4. Health cover, pension or retirement contributions.
5. Equipment, internet and co-working allowances.
6. Currency, payday and any transfer fees.
7. Notice period, and how either side can end the contract.

How do I work out what to ask for?

1. Read the posted salary range. Many job posts include one, and we show it on Apply Remote when the source provides it.
2. Look up public salary data for your job title and country, and compare at least three sources, since they often disagree.
3. Ask people in your field, and recruiters, what ranges they're seeing.
4. Decide your own floor first: the lowest total package you'd say yes to.
5. If you can point to clear results, aim for the upper half of the range.

How do I negotiate a remote salary?

Stay friendly and specific. You're not fighting them, you're working out together how to make the offer work for both sides.

• Ask before you answer: "How is pay for this role decided, and what's the range?" If you can, let them name the first number.
• Anchor on value: "Given the scope of this role and my results in [area], I was expecting [range]."
• Negotiate the whole package: paid leave, an equipment budget, a learning budget, a four-day week, a review after six months. A strong cover letter and resume give you the proof to ask for more.
• Get the final terms in writing before you resign from your current job.

What are the red flags in a remote pay offer?

• Unpaid trial work that runs for days or looks like real production work.
• Pay "in exposure", or in equity you can't value, or only after a long delay.
• A refusal to put pay, hours and termination terms in writing. If an offer feels too good to be true, read our guide to spotting remote job scams.
• Being called a contractor while the company controls your hours and tools like it would for an employee. That can be misclassification, so talk to a local accountant or employment adviser.