[FabHK]

Not really, unless the company chooses the location, or requires people in different locations. For example, the foreign ministry or supranational organisations need people in every country they run consulates/embassies/offices; airlines or export oriented businesses might need people in different locations - they should be paid depending on the local cost of living (and depending on that, the employer might choose to send more or fewer people there).

But for remote work, ie work that can be done anywhere at the discretion of the employee, why should there be any connection?

As it happens, this would create an incentive for employees to move to cheaper locations, and thus alleviate pressure on the housing market in the most expensive locales, and raise salaries in cheaper parts of the world.

Arbitrage tends to reduce differences/inequalities, in this specific case as well as in general.