sharing views
Contract flying is a unique business.
Consider this from another perspective. Most of the pilots working for SA contract companies are South African who live in SA.
Lets take Pilot "X" who earns a salary of U$ 4500 per month ON, and U$ 2250 on month OFF. ( hypothetical figures )
He works 2 ON, 1 OFF rotations, thereby earning an annual salary of (8x4500)= U$36,000 plus (4x2250)= U$9,000 so earning an annual salary of U$45,000. ( ZAR 315,000).
Due to SA tax laws, this is an almost entirely tax-free salary.
The annual productivity of Pilot "X" is 8 months, as he only works 8 months a year. So this is ZAR 315,000 / 8 to get a nett productive salary of ZAR 39375 after tax for each month actually worked ( and he still has 4 months of the year free)
In Financial terms, Pilot "X" is only worth his salary to the business when he is productive.
A scheduled airline pilot / office employee earning the same ZAR 315,000 per annum works in SA 11 months of the year, with less than 1 month paid leave ( a 'normal' job). This is taxed at +/- 35% and equates to ZAR 315,000 / 12 = ZAR 26250 before tax, leaving a nett salary of ZAR 18375 for each month worked.
So, if structured correctly, the same salary yields contract-pilot "X" more than double his colleague's monthly salary per productive month, and he gets 3 months a year more completely free of duty.
Why lose 3 months holiday, work 6 days a week, battle traffic, just to pay the taxman half your salary ! ( that makes you a civil servant ! )
Talking of productivity, and its been mentioned in this forum already...
Some airline pilots in SA are earning far less GROSS salaries than some contract pilots, and then still have to pay tax. They work 6 days a week, up to max monthly and yearly FDP.
They work 11 months a year. They drive to and from ORT every day, fighting traffic, working early mornings and late nights.
As they say, be careful what you wish for, it may just come true !
Most contract pilots work day VFR only, and the plane goes to bed at sunset and wakes at sunrise. Then he goes home for a month and doesn't give the company a second thought until his next rostered duty. If he get called up early, he is paid an extra allowance ON TOP of his salary, likewise if he extends a tour.
But for this, a contract pilot makes a choice - is he willing to spend 8 months away from home for this 4 months off and double the salary ? This is a choice only he can make.
Contracting is NOT a career, it is a great way to build hours quickly, to get that airline job you dream of, earn a tax-free salary, and have four months a year on holiday.
For those that make it a career, and why wouldn't you, they continue to earn a tax free salary higher than their airline counterparts, and continue to have 4 months a year on holiday, its a choice they made.
The above is written in the spirit of promoting alternative thinking, maybe as an outsider's view, looking in, at the salary discussion, and provoke insightful conversation.