Remote Work Salary Adjustments Explained: Complete Guide 2025

Remote work salary adjustments have become standard practice as companies embrace distributed teams. Understanding how these adjustments work helps you navigate compensation discussions, evaluate job offers, and make informed career decisions.

What Are Remote Work Salary Adjustments?

Remote work salary adjustments modify compensation based on where employees work rather than where employers are located. Companies adjust salaries to account for cost of living differences, local market rates, or both.

How Companies Calculate Salary Adjustments

Cost of Living Index (COLI) Adjustments

COLI-based adjustments scale your salary proportionally to cost differences between locations. The formula is: Adjusted Salary = Current Salary × (Remote COLI ÷ Current COLI)

Local Market Rate Adjustments

Local Market Rate adjustments benchmark your compensation against typical salaries for similar roles in your remote location. This approach often produces larger salary reductions because it prioritizes competitive local rates over purchasing power preservation.

Major Companies and Their Adjustment Policies

GitLab publishes its entire compensation calculator publicly, using location factor multipliers ranging from 0.6 to 1.0. Facebook (Meta) uses internal compensation bands adjusted by geographic zones, with adjustments ranging from 5-15% for moves within the United States.

Should You Accept a Salary Adjustment?

Accepting salary adjustments depends on your total compensation picture, not just base salary. Calculate your actual take-home value considering housing costs, taxes, commuting expenses, and overall purchasing power changes.