Just playing devils advocate: is it ethical to pay someone SF salary despite them living in a third world country where they are essentially richer than kings and can wreak havoc on the economy/culture if they themselves aren't ethical (paying off government, etc).
Salary is not a number, its a "standard of living". But paying two engineers in two different zip codes the same number, you are technically paying the person in the cheaper location more. They have a much higher "standard of living".
My main PoV for this is it doesn't particularly matter to the business where the employee is if they're working 100% remote, they're getting the same value out of the same employee regardless of where they happen to live. Trying to judge how much a salary is worth to the person just lets businesses justify getting similar value for lower cost when they're already coming out way ahead.