This system fails badly when people move between cheap and expensive cities over the course of their lives, and might need to build savings at expensive city levels when living in a cheap city.
Why not just pay everyone at the expensive city level? If you were hiring a true consultant rather than an employee or a full-time "contractor," you would pay them solely based on value delivered and the defensibility of their pricing given GitLab's business needs. Their cost of living wouldn't matter.
For employees at an all remote company, I don't see why their cost of living should matter any more than that. And applicants in expensive cities would not be dissuaded.
Additionally, the calculator's attempt to handle cost of living fails to address hot markets outside the US (hello from Montreal), treats many countries as way more homogeneous in cost of living than they really are, and gives a seemingly quite inadequate 17% adjustment for contractors. That doesn't cover legal and accounting fees, paid time off of various types, the cost and limitations in health insurance coverage attainable by one-person companies, normally employer-side retirement contributions, etc.
Why not just pay everyone at the expensive city level? If you were hiring a true consultant rather than an employee or a full-time "contractor," you would pay them solely based on value delivered and the defensibility of their pricing given GitLab's business needs. Their cost of living wouldn't matter.
For employees at an all remote company, I don't see why their cost of living should matter any more than that. And applicants in expensive cities would not be dissuaded.
Additionally, the calculator's attempt to handle cost of living fails to address hot markets outside the US (hello from Montreal), treats many countries as way more homogeneous in cost of living than they really are, and gives a seemingly quite inadequate 17% adjustment for contractors. That doesn't cover legal and accounting fees, paid time off of various types, the cost and limitations in health insurance coverage attainable by one-person companies, normally employer-side retirement contributions, etc.