If your rent/mortgage gets cut in half, it seems reasonable for the company to also benefit some. It shouldn't be dollar for dollar though or why move? It should probably be negotiated between the employer and the employee. In stripe's instance, they aren't making them move. If someone doesn't want to move to a place 20% cheaper and take a 10% paycut then that's their choice.
It seems reasonable only until you start using your brain. If the company saves on operating costs, is it also reasonable to give a pay raise their employees to also benefit some? We all know that's not how it works.
It is reasonable in some cases. It will depend on where the employee moves to.
If they take a 10% cut in pay, but move to a place that cost of living is 30% less than by the parent company they effectively get a 20% pay raise. That's on top of the $20K moving bonus.
The employee also wouldn't have to worry about paying more tax on the portion of money earned in a higher tax bracket ( if the normal pay + 20% reached the next bracket ) saving them a few extra dollars VS. if they just got a 20% bump...
It seems reasonable to split the difference. (Score:1)
If your rent/mortgage gets cut in half, it seems reasonable for the company to also benefit some.
It shouldn't be dollar for dollar though or why move?
It should probably be negotiated between the employer and the employee.
In stripe's instance, they aren't making them move.
If someone doesn't want to move to a place 20% cheaper and take a 10% paycut then that's their choice.
Re: (Score:4, Interesting)
Re:It seems reasonable to split the difference. (Score:3)
It is reasonable in some cases. It will depend on where the employee moves to.
If they take a 10% cut in pay, but move to a place that cost of living is 30% less than by the parent company they effectively get a 20% pay raise. That's on top of the $20K moving bonus.
The employee also wouldn't have to worry about paying more tax on the portion of money earned in a higher tax bracket ( if the normal pay + 20% reached the next bracket ) saving them a few extra dollars VS. if they just got a 20% bump...