One in five European companies pondering wage cuts for remote workers

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One In Five European Companies Pondering Wage Cuts For Remote Workers
Pleo found some small and medium enterprises are looking at the measure to reduce costs. Photo: Getty Images
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One in five companies in Europe are looking at reducing the wages of staff who work from home.

A recent study by budgeting app, Pleo, found one in five small and medium-sized companies in the EU are contemplating cutting the salaries of remote workers to bring down costs.

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The firm said companies will be focused on cost savings for 2024.

Responding to the study's findings, Caroline Reidy, from the HR Suite, told Newstalk that tech companies are trialling lower rates for some of their remote workforce.

"If you work in the suburbs, and basically, for example, if you no longer have the cost of your commute, the cost of parking, the cost of all the other things if you were actually in the middle of the city centre, the idea is you would actually get paid less.

"It has been tried by big companies like Google in New York and other parts of the globe."

Ms Reidy added: "We see a lot more companies now saying they want people to come back.

"A lot of US multinationals are looking at mandating back to the office returns at some stage in 2024, which is causing its own challenges around attraction and retention."

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