Work from home for a London company? Then expect a wage cut

Nearly one in ten employers in the capital have dropped – or have plans to abolish – London’s weighting allowance on salaries for remote workers.

An exclusive survey of more than 22,700 companies by recruitment firm Hays found that 11 per cent would forgo salary increases for London workers who continue to work from home.

The research also found that 28 percent of employers plan to hire employees to work remotely on a permanent basis, more than double the number in a previous survey.

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Many companies plan to allow employees to work “flexibly” – going to the office on some days of the week and working at home on others.

There has been some debate about whether the salaries of those who continue to work from home should be reduced as they do not have to pay for commuting costs.

Last month, Whitehall officials were reported to have held talks about scrapping the ban in London for civil servants who do not wish to return to the workplace.

“As employers adjust their hiring plans for the post-pandemic world, it is encouraging to see more than a quarter of them hiring for remote roles,” said Simon Winfield, Hays’ managing director.

This, he said, gives employers access to a larger pool of talent – such as people with access issues – “at a time when competition for employees is rising”.