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If you work remotely full time for a company that's office is in a different city or state than yours, is your salary based on your location or the company's location?

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    Depends on the intention from the company, if they looking for someone cheap they would probably look for someone positioned in India or similar, if they just don't mind a remote developer for the normal salary, it would be a normal salary as you would expect when working on their location itself. – Viezevingertjes Sep 28 '12 at 9:19
  • Hi @MrMichael, I guess your comment is clear enough to become a proper answer... – Tiago Cardoso Sep 28 '12 at 12:35
  • @TiagoCardoso Writing them is not my strongest point, but one could always edit it, so added it as an answer, thanks. :) – Viezevingertjes Sep 28 '12 at 12:49
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In the past I have seen this can rely on the intentions of the employer.

For example, if they know you are good and want you badly but at the same time know you are not able to move and work at their location, they will most likely offer you the salary that is in the scale of the other employee's.

On the other hand, if they want you just because you are cheaper than others in that region/country, they will offer accordingly, because else they would just hire someone closer for a normal amount of salary. So it all depends on the reason why they are hiring.

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    Scenario 3: Talented coworker with a lot of in-house knowledge decided to move abroad for personal reasons and gave his notice. The company offered to retain him for 2/3 or 3/4 of his salary, which was still a lot for that country. The mistake here was, I am convinced, with the colleague, who failed to negotiate something closer to or better than his old salary. – rath Oct 17 '18 at 10:21
  • @rath, In that scenario i would probably ask even more salary, it seems they can't affort to lose you (or your knowledge), not the other way around. – Viezevingertjes Oct 18 '18 at 9:04
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    Absolutely. I would've done the same in his shoes – rath Oct 18 '18 at 9:12
4

There is no one answer to this.

Some companies have set ranges for their job titles. They stick to these ranges reguarless of wether they are high or low for the area.

Some companies have contractual obligations to pay certian rates. It may be possible that the contract would state that certian areas get paid more. This is sometimes true for government contractors. The government will mandate the pay rate for the position with adjustments based on the cost of living in the area. In this way people living in NY or DC can sometimes make 50% more than someone living in a rural midwest community.

Many companies have guidelines for their pay ranges but can go above or below depending on the circumstances. In this situation the company will usually look for the pay rate that is most advantageous to them and use that for bargianing. So if you are in an area where the average rate is much higher than their office location then they would try to use the office rate. But will gladly reverse it if the opposite is true.

You can generally negotiate much better before accepting the position than you can once you are employed at the lower rate.

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