Location-Agnostic Pay
All you need to know about EORs, global employment and international hiring.
Location-agnostic pay, sometimes also called ‘geographically independent pay’ or ‘remote-first pay’, refers to when an employer offers a fixed salary or wage that is not tied to the physical location of the employee’s work. In other words, regardless of where an employee resides or chooses to work, they will receive the same base salary.
In many compensation structures, salaries may be influenced by the prevailing wage rates in specific locations and what a given company can afford. For example, employees working in countries with higher market rates, such as Norway or the US, might receive higher salaries compared to those with lower market rates, such as Estonia or Portugal. However, this approach can create discrepancies and pay inequities when employees working in similar roles have different salaries based solely on their location.
Adopting location-agnostic pay allows companies to promote pay equity and reduce potential disparities in remuneration. It allows organisations to assess job roles’ market value from one location, usually where the company is based, and set a consistent salary that applies to all employees holding the same position, regardless of where they choose to live or work.
If your company decides to utilise a location-agnostic pay strategy, it’s important to create a remote compensation policy that outlines it.
Well-defined remote compensation policies help establish fairness, transparency, and consistency among workers, promote employee satisfaction, productivity, and retention, and address potential challenges and concerns related to remote work arrangements, regardless of an employee’s geographic location.
Depending on the size of your team and business, developing a location-agnostic remuneration plan could be the best compensation strategy to ensure you’re paying your employees fairly for their work.
Speak to one of our experts about how Boundless can help you employ your global workers legally and, if you decide a location-agnostic payment structure is right for you, compensate them accordingly.
The making available of information to you on this site by Boundless shall not create a legal, confidential or other relationship between you and Boundless and does not constitute the provision of legal, tax, commercial or other professional advice by Boundless. You acknowledge and agree that any information on this site has not been prepared with your specific circumstances in mind, may not be suitable for use in your business, and does not constitute advice intended for reliance. You assume all risk and liability that may result from any such reliance on the information and you should seek independent advice from a lawyer or tax professional in the relevant jurisdiction(s) before doing so.
A payslip is a document that employers provide to their employees each pay period that may be distributed electronically or via physical copy.
A remote compensation policy is a set of guidelines established by an organisation to define how employees who work remotely abroad are compensated.
Payroll is the process of paying employees their salaries. Running multi-country payroll requires time and resources, and requires much consideration.
Tax residency refers to where an individual pays taxes based on where they reside and work, and is determined by how long they’ve lived there.
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