Big Foot3434

OK new to PPRuNe, looked for the search function to find the answer can't find it. So please answer the question before making fun..
What is the pay of a SO, I have found DEFO but no SO. just seeing if it would be worth taking and moving to HK.

EngineOut

salary $33-35K/month for year 1, housing at the moment is around $31K/month

islandguy

Year 1: $386,556 HKD
Year 2: $432,960 HKD
Year 3: $484,920 HKD
Year 4: $543,108 HKD

This is basic salary and does not include housing allowance.

1 USD equals about 7.8 HKD.

mrsandfree

I have been told that basic housing allowance is 14,000/mo but SO's may qualify for more. How does one qualify for the increased allowance?
Thanks.

WhatThe?

I understand that it is $14,000HK "cash in hand" or Cathay will pay a lease for you (approved by CX) of somewhere around $30,000HK per month. They have a real-estate office in CX city that handles this for you.
There is no extras for families, and no deductions for being single!

slowandsteady

So will CX pay for a mortgage OR a lease/rental agreement?

Thank you.

Sleeve_of_Wizard

Correct.......... mortgage ( if you can afford one) and rent is paid by the Company....... But you are taxed on it of course.............. After two years as S/O i think....... you can increase to a larger allowance.

EngineOut

Correct! CX will pay housing allowance on mortgage or lease. For the first 2 years you only receive 50% of the housing allowance (currently 50% is around $31K/month) After 2 years of service or JFO and above you increase to full housing, so around $62K/month.

If you decide to take the cash option ($14K), it all forms part of your taxable income

If the company pays the housing directly it is also taxed, but it is minimal. All it does is increase your taxable income by 10%. ie if you earn $400K, your taxable income will be $440K. It does not make you taxable income increase by your total housing allowance. Then, worst case tax is 16% of that total($440K); but in fact as an SO it will be substantially less than that. Dependant wife and/or children are also tax deductions, (from memory the wife is worth $200K). So if your income is $400K, plus housing ($+40K), minus the wife deduction, taxable income is only around $240K.

slowandsteady

Thanks for the clarification.

Happydays

Housing is now HK$31500/month at the moment.

How much tax will I pay on a :

1st year SO salary and that housing allowance ?

EngineOut

try this calculator:

Salaries Tax Computation

remember that value of residence provided is a maximum 10% of your gross income, as I said in the post above.

In HK you pay tax in advance for the year ahead based on your current income. For the first year, you will have to pay two year's worth of tax, so your very first tax bill will be the current year in arrears and next years tax in advance. Subsequent years you will only pay the corrections to the current year and next year's estimate in advance.

Clear as mud?


You will actually earn slightly more than $386,000 in year 1, with flying pay, you will get over $400K. It is quite normal to earn $37K in a month, 13th month (hopefully), and profit share, (FYI, profit share this year was 1 month's pay also, but don't expect that this year with oil prices). So it is possible to get $460K-500K+ in year one.

For simplicity I've used $400K (+40K housing)

Single $44,440
Married $26,080
Married + 1 kid $17,580
Married + 1 kid born during the financial year $9,080
Married + 2 kids $9,080
Married + 1 kid, and a second born during the financial year $3,180

So, tax is pretty good compared to western countries, the last case above is only $407 USD for the whole year!

Hope that helps...

Happydays

Do you have to pay tax on the sign up money you get ? The money they put into your account when they open it ?

Big Foot3434

Thanks so much for the info. This all helps a lot.