The 3% is pretty much certain as this is a yearly step ostensibly for loyalty, years of service etc. We used to have a schedule on this. Does anyone know if it still exists?
The flying pay will approximately double. This gives about a 17% rise at the bottom of the F/O scale which attracts new joiners depending on how the company spins it.
At the top end of the Captain's scale the increment is about 9.5%. This is approximately in line with published inflation figures for the UAE. No captains on the top scale will leave as its difficult to match the package elsewhere.
If the cycle is repeated for 5 years with flying pay adjusted to keep the total pay increase in the region of 10-15% then flying pay will represent approx 50% of the total monthly pay package.
The total increase for Provident Fund, ERP etc obviously only goes up by 3% which means over the years they can decrease it to negligible levels. If it goes up by 3% for 5 years while inflation stays in the 8-10% bracket this would represent a 30% devaluation of company contributions.
Again the company indirectly recovers cost when employees are on leave or are sick.
Flying pay was a definitive step toward a scheme of a basic retainer and pay for productive work while diluting other company package contributions. Pilots are no-longer considered professionals but simply hourly wage earners.