How do Google or Facebook adjust salary based on location?

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Answer by Kirill Valyas:

I will give you average salaries for Google in New York City and San Francisco.

New York City
Software Engineer $133,169
Senior Software Engineer $174,229
Product Manager $150,315
Account Manager $84,199

Google Salaries in New York City, NY

San Francisco
Software Engineer $113,335
Senior Software Engineer $154,357
Product Manager $140,948
Account Manager $81,268

Google Salaries in San Francisco, CA

As you can see Google pays more for employees in NYC. Why? Probably Google adjust its salaries for same job positions based on demand at specific locations. They need 2 product managers in New York asap, so they will offer a salary above average and try to get someone who will fit in their team instead of waiting for weeks or months and see when another company will hire that person.
Google is a desired place to work for many people with Computer Science background, but many developers are still looking for the highest paid job and don't mind to work for Uncle Joe who will pay them $150k instead of Google with its $120k. I hope that makes sense.

How do Google or Facebook adjust salary based on location?

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