In 2025, remote work remains a cornerstone of the modern workplace, particularly in the IT industry, which leads in remote job adoption. This report examines the latest trends in remote work salaries, focusing on the IT sector, and provides a global comparison to offer actionable insights for employees and decision-makers. Drawing on industry reports and surveys, we explore salary premiums, location-based variations, and the broader implications of remote work on compensation strategies.
Trends in Remote Work Salaries
Increased Demand for Remote and Hybrid Roles
The demand for flexible work arrangements continues to shape the job market. According to Robert Half’s Demand for Skilled Talent report, 29% of professionals are actively seeking or planning to seek new roles in the first half of 2025, with 48% preferring hybrid roles and 26% favoring fully remote positions Robert Half. This trend is particularly pronounced in the IT industry, where remote work has become a standard offering. The preference for flexibility empowers employees to negotiate higher salaries and pushes employers to adapt their compensation strategies to remain competitive.
Salary Premiums for Remote Workers
Remote workers often command a salary premium, particularly in the US. A 2024 salary survey analyzed by RemotePeople.com found that remote workers earn an average of 9.76% more than full-time office workers, equivalent to an additional $8,553 annually RemotePeople. In specific cities, this differential is even higher. For example, in Baltimore, remote workers earn 39.16% more than their office-based counterparts, while office managers working remotely see a 31.71% salary increase. However, this premium is not universal, as five US cities show office-based workers earning more in certain roles, highlighting the complexity of salary structures.
Impact of Location on Salaries
Despite the borderless nature of remote work, location remains a critical factor in salary determination. Jobicy’s Remote Salary Directory covers over 100 countries and 200 positions, with IT as the top industry, indicating that salaries are tailored to local economic conditions, experience levels, and specialized skills. For instance, a remote software engineer in a high-cost region like the US or Western Europe typically earns more than one in a lower-cost region like Southeast Asia, even for identical roles. This variation reflects differences in cost of living, local labor markets, and purchasing power, necessitating careful calibration of remote salaries.
Tech Industry Specific Trends
The IT sector, a leader in remote work, exhibits unique salary dynamics. Robert Half’s 2025 Tech and IT Salaries and Hiring Trends report reveals that 78% of technology managers are willing to offer higher starting salaries to candidates who agree to work in the office full or part-time, with some offering up to 20% more Robert Half. This suggests that while remote work is valued, some employers prioritize in-person collaboration, particularly for roles requiring close team coordination. Conversely, fully remote roles without location requirements, often termed “work-from-anywhere” jobs, continue to attract global talent, offering significant flexibility but representing a smaller portion of job listings FlexJobs.
Global Comparison of Remote Work Salaries
US vs. Global Remote Work Salaries
In the US, remote work is well-established, with 22.8% of employees (approximately 36.07 million people) working remotely at least partially as of March 2025 Backlinko. This high adoption rate reflects the maturity of remote work infrastructure in the US, supported by advanced technology and a strong IT sector. Globally, remote work adoption varies, with developed economies like Canada and the UK showing similar trends, while emerging markets are catching up. However, salary levels differ significantly. For example, a remote IT professional in the US may earn a premium over local office workers, whereas in other regions, the salary advantage may be less pronounced due to lower baseline wages.
Regional Disparities
Salary disparities are evident not only between countries but also within them. In the US, cities like Baltimore show significant salary premiums for remote workers, while others may have smaller or no differentials RemotePeople. In contrast, countries with lower costs of living, such as the Philippines or Vietnam, offer competitive remote salaries relative to local standards but often fall short of those in high-cost regions like North America or Western Europe. This variability underscores the importance of location-specific salary benchmarks, even for remote roles.
Developing vs. Developed Countries
Remote work has created opportunities for workers in developing countries to access global job markets, often earning salaries that exceed local averages. For instance, a remote software developer in the Philippines may earn significantly more than their locally employed peers, but their salary may still be lower than that of a similar professional in Canada or the US. This disparity reflects global economic inequalities and poses challenges for companies aiming to balance cost-effectiveness with equitable compensation. The FlexJobs Remote Work Economy Index highlights that industries like tech and healthcare are leading in remote hiring, enabling talent from developing nations to compete globally FlexJobs.
Challenges and Opportunities
Productivity and Salary Linkage
The relationship between remote work and productivity has direct implications for salaries. The U.S. Bureau of Labor Statistics reports a positive association between the rise in remote work and total factor productivity growth across 61 industries from 2019 to 2022 BLS. This suggests that productive remote workers may command higher salaries as companies recognize their contributions. However, concerns about collaboration and training in fully remote settings could lead some employers to adjust compensation strategies, particularly in roles requiring significant in-person interaction.
Retention and Flexibility
Flexibility is a key driver of employee retention. Robert Half’s survey indicates that 76% of workers value flexibility in when and where they work, directly influencing their decision to stay with an employer Robert Half. Companies offering competitive remote salaries and flexible work arrangements are better positioned to retain talent, particularly in the competitive IT sector. Conversely, those enforcing return-to-office mandates may face higher turnover, as 29% of hybrid and remote workers would expect a pay raise to return to the office full-time Pumble.
Global Talent Pool
Remote work has expanded the talent pool, allowing companies to hire from diverse regions. This globalization offers cost advantages but also requires careful management of salary benchmarks to ensure fairness and compliance with local labor laws. For example, a company hiring a remote developer from Thailand may pay less than for a US-based developer, but must ensure the salary is competitive locally to attract top talent. This dynamic is reshaping compensation strategies, with companies increasingly relying on data-driven insights to set salaries.
Conclusion
In 2025, remote work salaries reflect a dynamic interplay of demand, location, and industry-specific factors. The IT sector leads in remote work adoption, with remote workers often earning premiums over office-based peers, particularly in the US. However, global salary disparities persist, driven by economic differences and local market conditions. As remote work continues to evolve, companies must balance cost-effectiveness with fair compensation to attract and retain talent. Employees, meanwhile, can leverage the demand for flexibility to negotiate competitive salaries. Understanding these trends is essential for navigating the future of work in a globalized, remote-first world.
