A survey by Breeze, an insurance company, found that 65% of people would take a 5% pay cut, 38% would take a 10% pay cut, 24% would take a 15% pay cut, 18% would take a 20% pay cut, and 15 % would take a 25% pay cut.
The median household income in 2018 was around $60,000 so 65% of people value remote work at roughly $3,000 per year, 15% of people value it at $12,000.
- Not having to commute for five hours is equivalent to a 10 percent raise so the average worker is breaking even at 10%.
Links to this note
We can come up with a valuation of remote work by looking at a few signals: what you would forgo, what do you gain, what others gain, and what others lose.
In a recent article in Business Insider, a leaked pay calculator and interviews found that some employees face pay cuts if they continue to work remotely. In one example, an employee based in Stamford, CT would face a 15% pay cut unless they worked from the NYC office (1 hour commute). Former San Francisco employees could face as much as a 25% pay cut.
List of places that will pay you to move and work remotely: