Work From Home In 2025: Costs Of Remote Work You Should Not Ignore

Working from home is becoming an increasingly popular method of employment, where employees opt to perform their duties from the flexibility of their homes. While many companies are not open to this mode of work, slowly several startups and new-age firms are adopting work from home.

Globally, employees agree that working from home offers flexibility. It saves time and cost on commuting to the office daily. Working from home also offers an opportunity for more family time.  

While working from home offers many benefits for employees, it also comes with certain challenges and costs. Fostering a work-like environment at home is one of the issues that remote workers often face.

Beyond this, work from home also comes with several expenses. Most of the costs pertaining to work from home are covered by the employers. However, if your office does not offer a reimbursement for these costs, work from home may increase your overall monthly budget. These expenses may include internet, electricity, equipment and office furniture, among other things.

While many companies offer to cover these expenses, the benefits are limited. Moreover, while self-employed individuals can claim deductions on certain business expenses, the same is not the case for salaried individuals.

Hence, instead of directly looking for tax exemptions, employees can approach their employer to negotiate reimbursements.  

Those who work from home in June 2025 should keep track of these expenses:

Internet bills: Telecom companies offer a wide range of monthly internet plans. If you have to upgrade your existing plan for faster internet or more data, you can figure out the additional yearly costs that come with this. 

Electricity expenses: You can check if the electricity bills are significantly higher compared to earlier months. Particularly in summer, you may experience higher bills for prolonged use of air conditioners as you are staying at home for longer periods.

Home office setup: Office furniture is an additional cost that comes with work from home setup. While some companies offer a one-time reimbursement for this purpose, others may not. So, before agreeing to work remotely, you must factor in this cost in advance.

Technology maintenance: Some companies may ask you to have your own laptop. This is a significant expense, especially if you need to buy a new one just for your work. Even if you have a personal laptop, its prolonged use for office work can require extra maintenance. This cost can fall on your shoulders as the company may not offer support for maintaining personal devices.

While opting for work from home, these are some of the essential factors that you can discuss with your employer. If they don’t offer reimbursement or a stipend for home office-related expenses, you should discuss a salary revision that includes at least some portion of these costs.