Remote Compensation (Definition & How Pay Is Structured in Distributed Teams)

Remote compensation is how companies design salary, benefits, and incentives for employees who can work from anywhere.

What Is Remote Compensation?

Remote compensation covers how pay is set, adjusted, and communicated for remote employees, often across different countries and cost-of-living levels.

Common Approaches

  • Location-based salary bands
  • Single global bands with adjustments
  • Role and level-based frameworks
  • Mix of salary, bonuses, and equity

Key Considerations

  • Fairness across regions
  • Legal and tax compliance
  • Transparent communication about how pay is determined

Related Terms

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