While some employers may opt to adjust employees’ salaries based on location, they have other options to balance financial needs when evaluating their compensation strategies. (Photo: Shutterstock)

COVID-19 is expediting the adoption of permanent remote-first work across many companies. Twitter, Slack, Square and Shopify have all committed to allowing employees to work from home indefinitely since the start of the pandemic. The ability to work remotely on a permanent basis offers employees many benefits, such as the freedom to live and work from anywhere.

But what happens to an employee’s salary if they choose to move to a city with a lower cost of living? Facebook’s CEO Mark Zuckerberg says his company will localize employees’ compensation based on where they choose to live.

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