The Rise of Hybrid Work and Its Effect on Salaries

Hybrid work has emerged as the dominant workplace model in 2025. It blends the benefits of remote flexibility with the collaboration of onsite work. But while employees celebrate flexibility, a pressing question arises: how does hybrid work affect salaries?

What Is Hybrid Work?

Hybrid work refers to models where employees split time between working from home and the office. Unlike fully remote or fully onsite models, hybrid aims to balance productivity, culture, and flexibility.

Salary Implications of Hybrid Work

• Parity with Onsite Roles – Most hybrid employees earn salaries similar to their onsite peers.
• Reduced Metro Premiums – Since employees commute less, employers are reducing metro-city pay premiums.
• Increased Allowances – Internet stipends, travel reimbursements, and wellness allowances are becoming standard.
• Negotiation Shifts – Hybrid employees negotiate for flexibility perks rather than just higher base pay.

Global Hybrid Work Trends

Hybrid adoption is not unique to India. Globally:

• US – 70% of large companies run hybrid models; salaries remain tied to performance, not location.
• Europe – Hybrid roles are codified in labor agreements, with flexible pay structures.
• Asia – Indian IT firms, Singaporean banks, and Japanese MNCs have normalized hybrid models.

Case Study: Hybrid in IT Services

Priya, a senior developer in Hyderabad, transitioned from remote to hybrid in 2024. While her base salary didn’t increase, she received additional allowances and a retention bonus. The company found hybrid improved productivity, and employees valued flexibility — creating a win-win model.

Employee Perspective

For employees, hybrid work means:

• Better work-life balance without salary sacrifice.
• Lower commuting costs and reduced fatigue.
• Greater bargaining power to choose roles offering flexibility.

Employer Perspective

For employers, hybrid models offer:

• Access to a wider talent pool beyond metro cities.
• Reduced infrastructure costs as office footprints shrink.
• Improved retention by meeting employee expectations.

Risks and Challenges

• Two-Tier Pay Risks – Remote-only vs. hybrid pay gaps can create dissatisfaction.
• Performance Tracking – Employers must balance trust with productivity monitoring.
• Culture Dilution – Teams risk weaker collaboration if hybrid policies aren’t well-managed.

The NesaWorks Advantage

NesaWorks benchmarks hybrid pay patterns across industries and cities. Our Salary Worthiness Reports reveal whether hybrid employees are compensated fairly compared to onsite and remote peers — and guide professionals in negotiating both pay and perks.