In my BigCo experience, they do recalibrate pay scales at different locations, but not nearly to the extent that they should.  For example, one of them had three US geo &quot;zones&quot; that were supposed to reflect the cost of living there.  The bay area and perhaps Manhattan were the highest, I forget what was in the second, and the third was basically &quot;everywhere else&quot;.  The difference between the top and bottom was maybe 10-15%, considerably less than the width of the salary band for each grade.<p>So to make it concrete, a new hire at a particular grade might have gotten $120k in SF or $105k in Little Rock (base).  Considering the high taxes and housing costs in SF, the new hire in Little Rock would have had a much higher standard of living.<p>Of course, working at a non-HQ site is a <i>major</i> career-limiter, so 10 years down the road you might have been better off relocating anyway.  Depends on where you are in life and what you want to achieve.<p>By contrast, non-US salaries are dramatically lower independent of the cost of living at a particular location.  So if you&#x27;re working for a US BigCo outside the US, you had better be in Chiang Mai or Belize, not Berlin or Hong Kong.  As the author of this post notes, no one seems to know why this is so, only that it is.