However, a new analysis shows that while remote work may have plenty of benefits, it might be doing more harm to our hip pockets, with those who work from home being more likely to earn less money than those who don’t.

The study compared the wages of people with work-from-home agreements or who worked over 12 hours a week from home to those who did not, using data from 2017 to 2023.

A new CEDA analysis has found Australians who work from home earn 5.8 per cent less than those who don’t work from home. Source: SBS News

The results were consistent with the results of a 2023 Australian survey that found those who worked from home would take a pay cut of around $3,000 to $6,000 — or 4 to 8 per cent of their salary — to spend a few days at home in the work week.

But is the trade-off worth it?

Prepared to take a pay cut

“They’d calculated that they could afford to drop that $10,000 salary and still be better off.”

According to job advertisement website SEEK, over 50 per cent of Australian workers would ideally work from home two or more days a week.

“It’s going to make up a slightly reduced wage growth but what workers are doing is that they are reaping financial benefits in other areas of their life,” he told SBS News.

“Workers are valuing that flexibility and are willing to make a trade-off in their overall salary for the right to work from home.”

Increase in labour force participation

But productivity still remains an area for concern, despite evidence indicating those working from home are keeping up with their colleagues in the office.

But as more companies mandate a return to working on-site, the arm wrestle between employers and employees over striking the balance continues.