(This blog post is going to be UK specific, and biased towards jobs that I've personally done.)
How much does it cost to go to work in a physical office? I'm going to try and list all the things I have to pay for just in order to be able to show up. This ignores things I can claim back on expenses (although that's an issue if you don't have sufficient credit access).
Commuting is the big one. At one time, I was paying close to £4,000 for a train into work. I've since moved closer to work, but I still pay £2k - quite a hefty chunk of salary!
Eating out is another cost. I've worked in places with subsidised canteens. But they're still more expensive than bringing your own sandwiches from home. Of course, you're reliant on no one nicking them from the communal fridge.
Little extras. Buying doughnuts for the team. Popping out for a coffee and a chat. Team drinks after work. Putting money into a leaving card. All those little things which are sort of voluntary, but not really.
Clothing is surprisingly expensive. I've worked jobs where you had to buy the uniform from your employer. And I've worked in places where new starters turned up in expensive suits that they couldn't really afford. Nowadays I tend to wear jeans and a t-shirt regardless of whether I'm at home or at work. Women quite often face the burden of needing a range of "respectable" workware, shoes, and "professional" hair and make-up.
Depending on your industry, you may be required to "project wealth" by wearing jewellery like a fancy watch, gold cufflinks, or a tie-pin.
Generally speaking, none of these things can be expensed. And I don't think most of them can be claimed back on your tax return if you're an employee.
There's a whole range of costs which employers just assume their employees are willing & able to bear.
Lots of those cost are - I hope - disappearing.
My bet is that people will use that "extra" income to pay for home-office space. Rather than paying a few thousand on commuting, people will gravitate to homes with extra space for home offices. The savings from all the other sundry costs will offset the extra cost of heating and electricity. At least, that's my hope!