← Remote Work Glossary

Location-Based Pay

A pay model where salary is adjusted to the cost of living or market rate of where the employee lives.

With location-based pay, the same role pays different amounts depending on where you live — more in an expensive city, less in a cheaper region. Employers argue it reflects local markets; critics say identical work should earn identical pay.

It's the opposite of location-independent pay. Knowing which model a company uses helps you predict an offer and negotiate — more in our salary guide.