The world of work has changed forever. For growing technology companies, established global enterprises, and even early-stage startups, supporting remote teams isn’t just a benefit. It’s now a basic expectation. As we help organizations through EWS Limited transition to remote or hybrid work, there’s a practical question that keeps coming up: Should companies provide work from home stipends, and if so, how can they manage them fairly and effectively?
We want to demystify work from home stipends (sometimes called remote work stipends), show you exactly what they can cover, explain the business impact, and provide a step-by-step guide. Whether your company operates on a global scale or you’re about to launch your first international team member, clear policies around stipends are a game changer, for attraction, retention, and long-term growth.
Let’s start with the basics. A work from home stipend is a recurring or one-off payment provided by employers to remote team members to help cover the expenses of setting up or maintaining a home office. You might also hear it called a remote work stipend or home office stipend.
Support for your workspace, from your employer’s wallet, not just your own.
The idea is simple: as more companies shift to remote or hybrid arrangements, many employees are carrying new costs. There are obvious expenses, like ergonomic furniture and better internet, and hidden ones, such as extra electricity or needing access to specific software.
According to a recent Forbes Advisor survey, after flexible hours and increased paid time off, home office stipends were the third-most wanted benefit among remote workers. This signals a strong desire from talent for companies to step up in supporting staff working from home, no matter where that home may be.
In some countries, providing a remote work stipend is legally required. In others, it’s offered as an optional benefit. For example, certain European countries might mandate reimbursement for specific remote work costs, while in other locations, companies decide on their own approach. Either way, companies must always check local labor and tax laws before launching a stipend program, the rules can impact what’s covered, how it’s taxed, and employee expectations.
Not all jobs require the same setup. Some roles may need special equipment, while others only need a laptop and a quiet corner. A good stipend policy will clarify what’s included. Here’s what stipends most commonly help pay for:
It’s this broad range of coverage that makes stipends both practical and appealing for employees, especially for hybrid teams, or those who might split time between coworking spaces and home.
There’s no single way to structure a policy:
We often see a mix of these, depending on country, employee role, and precedent within the industry.
Understanding real-world budgets helps put things into perspective. While not every business can or should match tech giant perks, knowing what others do sets a helpful reference point for your own planning.
Small amounts, big differences, the impact runs deeper than numbers on a payslip.
In our experience at EWS Limited, startups and Series B/C companies often start at $250–$1,000 one-off, then offer ongoing internet or equipment reimbursements as budgets allow. More mature companies in high-cost urban areas may go higher to support worker wellbeing or retention.
Why are companies making work-from-home stipends a priority? What do they gain beyond good press or happy Slack channels?
The right office setup keeps people focused. A proper chair or an extra monitor reduces distractions and strain, supporting higher-quality work.
Stipends are a signal. According to a FlexJobs survey, 96% of professionals say remote work helps their mental health. Companies that put their money into tools and comfort attract, and keep, those who value flexible work. Visit our article on how to hire in the age of hybrid working for more on this trend.
Remote team members can face hidden costs. Covering some of these reduces stress and promotes fairness, especially when compared to in-office perks.
Issuing stipends, especially for wellness or ergonomic needs, makes it clear: We care beyond the bottom line.
Although stipends help in many ways, they aren’t a magic bullet for every business. There are a few areas to watch out for, especially when you’re managing a diverse workforce across multiple countries.
Stipends are a real spend. For Series B/C companies or those seeking funding, balancing growth investment and employee benefits is key. Leaders must review cash flow and priorities carefully.
Employees in different regions have very different cost bases. One person’s city rent might cover another’s full monthly utilities and food. To avoid resentment, clear guidelines on eligibility and regional adjustments are needed.
Tracking receipts, managing allowances, ensuring policies comply with each country’s tax and employment laws, this can be complex, especially at scale. There are digital HR tools that help automate these processes, but you must still oversee compliance and reporting.
In some countries, stipends are taxable benefits and need to be declared in local payroll. Others require specific items (like equipment) to be handled differently. It’s not always straightforward. That’s where global support from partners like EWS Limited comes in, ensuring local requirements are met without exposing the company to risk.
Generosity without structure creates more headaches than happiness.
If you are considering launching, expanding, or refining your remote stipend approach, we always recommend a careful, locally-informed review first. Platforms exist that help, but the groundwork for policy and compliance should always come from your own HR, legal, and leadership teams.
Stipend management is as much about listening as it is about logistics. Here’s how we’ve worked with companies to launch effective programs:
Before setting numbers, run surveys or have one-on-ones about remote challenges. What’s missing? What do people actually use? Review recent guidance in our detailed guide to recruiting and maintaining strong remote teams.
Make a clear list of allowable expenses and set rules on who’s eligible (full-time, part-time, contractors?) and when (onboarding, annually, moving country, etc).
In some countries, certain expenses might be required or restricted by law. Work with local experts or payroll advisors before publishing your policy. For help setting up policies across borders, it’s smart to revisit remote employee onboarding for international teams.
Decide: Are you providing a fixed monthly sum, a one-off allowance, or a reimbursement system? Each has different reporting and compliance implications.
Make your policy easy to access and provide a FAQ. Be transparent about why certain things are (or aren’t) included.
This isn’t a set-and-forget benefit. Monitor employee satisfaction, track what’s being used, and be ready to update policies as your team grows or your budget shifts. If you’re thinking of implementing a new hybrid or remote program, our article on how to set up an effective hybrid work model offers comprehensive advice.
A good stipend program is practical, fair, and reflects your real team needs, not just industry trends or headline numbers.
Launching a stipend policy is just the start. Companies must set up a process for gathering feedback and reviewing use. Here’s how we suggest staying on track:
We encourage an active approach. The companies with the happiest, and most productive, remote workers are those who listen, adjust, and demonstrate ongoing support. For more on supporting well-being and engagement, see our article about nudging employees to improve their well-being and productivity.
Offering a work from home stipend is more than a financial transaction. It reflects a company’s respect for employee comfort and a commitment to building supportive, flexible workplaces. By funding what team members actually need, companies unlock higher engagement, lower turnover, and a stronger sense of belonging, no matter where someone works.
We’ve seen over and over that clarity, fairness, and compliance matter as much as the actual stipend budget. For Series B/C startups, established IT firms, or growing global teams, the right policy now pays off many times in the future. If your company needs a structured, compliant way to manage stipends across multiple countries or wants to review and refresh your approach, EWS Limited is here to help.
Subscribe to our newsletter for expert advice on remote work, employment compliance, and building strong global teams. For a closer look at how we can help you grow confidently, get in touch with our team at EWS Limited today.
A work from home stipend is a payment from an employer to help remote workers cover costs related to setting up and maintaining a suitable home office. This may include office furniture, technology, software, or even internet access and utilities, depending on the company’s policy and the local laws.
Work from home stipends can be distributed as a one-off payment, a recurring monthly or yearly allowance, or through an expense reimbursement process where the team member submits receipts. Some companies combine these methods, depending on location or employee role. The structure and rules around stipend use will depend on the employer’s internal policy, employee status, and sometimes local financial regulations.
Stipends usually cover a wide range of items, including ergonomic chairs, desks, monitor stands, headphones, upgraded WiFi, software subscriptions, or, less commonly, utilities like electricity and even food delivery. Your company’s detailed stipend policy should spell out what is permitted, and whether receipts are required.
Yes, claiming your stipend can help you set up a comfortable, productive work environment while reducing your personal financial burden. It also prevents you from missing out on compensation that’s part of your employer’s support for remote teams. Just be sure to follow your company’s rules, as well as any tax requirements in your country.
Typical stipends vary widely. A common range for one-time setup costs is $250–$1,000, while recurring monthly stipends might be $50–$400, depending on company size, industry, and country. Tech industry examples include $380 monthly or $1,000 one-off, but each employer will set amounts based on their capacity and location.
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