Pune: Work From Home Turns Costly for IT Staff as Firms Link Performance Incentives to Office Attendance

Pune, 26th May 2026: The war in West Asia has triggered fuel shortages and a sharp spike in inflation, pushing up petrol and diesel prices and disrupting the financial planning of both the common man and salaried employees.

Against this backdrop, Prime Minister Narendra Modi had earlier advised companies to consider adopting the ‘work from home’ (WFH) model to help conserve fuel. However, the move appears to be having an unintended impact on the information technology (IT) sector, with employees beginning to feel the pressure.

At present, most IT firms follow a hybrid working model, under which employees are required to be physically present in offices for a few days each week. In several companies, staff are mandated to attend office for at least three to four days weekly. Following the Prime Minister’s appeal in light of the West Asia conflict, some IT firms have shown limited flexibility in attendance policies.

However, this shift has led to a new issue. Employees attending office are reportedly eligible for performance-linked incentives, while those working from home are being denied such benefits. Several large IT companies have reportedly adopted policies that link performance pay strictly to office attendance, effectively reducing salaries for remote working staff.

The development has drawn sharp criticism from the Forum for IT Employees, a body representing IT workers, which has flagged the issue and urged immediate corrective measures.

The demand for greater flexibility has also gained momentum among employees. During the Covid-19 pandemic, most IT companies successfully implemented the work-from-home model, with productivity levels largely maintained, as acknowledged by several firms. However, after the pandemic, many companies mandated a return to office.

Now, rising fuel prices, traffic congestion, and increased commuting costs have renewed employee demand for remote work, particularly in IT hubs such as Pune, Bengaluru, Hyderabad, and Gurugram, where long hours are spent stuck in traffic.

The Forum for IT Employees has questioned both the government and major IT firms, asking whether companies will actually follow the Prime Minister’s advisory. The forum has argued that work from home not only saves fuel but also reduces pollution and stress, while improving employees’ time management and mental well-being. It further said that when the government promotes Digital India and smart working, companies should also adopt more flexible work arrangements.