The Hidden Costs of Commuting: Why Going Back to the Office Could Mean a Pay Cut for Employees

Why Returning to the Office Feels Like a Pay Cut for Many Workers

The world shifts away from the pandemic, and employers now ask workers to meet in person. Government leaders and banks push this idea. Many workers see these new rules as a pay cut because extra expenses lower their net income. This is why.

The New Office Mandates

In Ontario, the government now demands that employees come to the office five days a week starting in 2026. Premier Doug Ford urges local governments to follow a similar plan. Major banks—Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, and Royal Bank of Canada—require staff to work in the office at least four days a week starting this September.

Many employees still favor remote work. They say coming in every day brings higher costs and a lower quality of life.

The Hidden Costs of Commuting and Office Life

Remote work helped workers save money and time during lockdowns. Now, returning to the office takes these benefits away. Workers lose in three main areas:

Time: The commute uses up hours each day. Less time remains for family, childcare, or personal tasks.
Transportation Costs: Extra expenses like gas, parking fees, and transit fares add up.
Daily Expenses: Spending more on lunch, coffee, and suitable work clothes grows costs.

Many workers feel these added costs cut into their pay. It seems like a reduction in their take-home income.

University of British Columbia’s Sauder School of Business professor Tsur Somerville explained, “People traded the lower cost of a house in the suburbs for the longer commute.” During the pandemic, many moved to bigger homes without worrying about commuting. In Canada, overall household savings climbed to about $350 billion.

Flexibility Remains the Top Priority for Workers

Today, flexibility is the key factor in choosing a job. Nancy D’Onofrio, director at Randstad Canada, notes that many workers need flexible schedules. In a survey of 26,000 people worldwide:

55% said they would not take a job without a flexible schedule.
37% left a previous job because they did not have flexibility.

Workers often choose a flexible job even if it means earning less. D’Onofrio warns that forcing full-time office work may reduce the talent pool, especially among skilled and bilingual employees.

Productivity Debate and Employer Strategies

Employers claim that productivity suffers without in-person oversight. Workers say that they perform just as well when working from home.

David Cairns, a strategist at hybrid workplace platform Kadence Inc. and former broker at CBRE Group, points out that the work-from-home rate has held steady since 2023. Before the pandemic, office occupancy ranged from 50% to 60%. The new return policies may only nudge that number a bit higher.

What Lies Ahead

Many workers hesitate to return to a full-time office schedule because of high costs. In this changing labor market, strict return policies may prompt resignations when better job offers appear.

Employers now face a clear choice. To keep top talent, they may need to rethink strict in-office rules and deal with the financial and personal costs that come with commuting.

Conclusion

For many Canadians, returning to the office is more than a change in routine. It feels like a pay cut when commuting and related expenses reduce net income. As conversations about work continue to evolve after the pandemic, employers must balance their needs with workers’ desires for flexibility and fair pay.

This article draws on insights from Financial Post reporting by Garry Marr and expert commentary from recruitment and workplace strategy professionals.

Full money-growing playbook here:
youtube.com/@the_money_grower