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I see, still seems like a good deal to me - cutting 2 hours for 10% that is. Depends on how much you value your free time I guess.

It is cost of labor, not cost of living. The pay cut to move to hawaii is the same as the pay cut to move to montana.

but my cost of living is now higher when Im using more electricity and water at home, and i had to refurbish my room for home office.

You could return to the office.

We're talking about employees moving to cheaper areas. I'm pretty sure the housing costs (mortgage or rent) largely offsets the additional costs.

I still think Google shouldn't do that, it's cheap to do that and they don't have to. However even with a 10% pay cut, employees moving from expensive areas such as Silicon Valley or the Seattle area to a cheaper one like some city in Oregon, the standard of living still goes up.

Is it really that significantly higher? I can’t imagine you’ve increased usage of those to the tune of thousands of dollars a year.

You can buy a home for 7 figures cheaper if you leave silicon valley. Why are you worried about a water bill/