Ryanair bases and new EU regulations on social security
Hello,
Here is a concern I have with the new European regulation pertaining to where a Flight Crew member has to pay social security in respect of his/her base and Ryanair present and future policies on the subject...
I am not sure if everybody knows but since June, Flight Crew members are supposed to pay social security contributions no longer in the country where their contract is labelled but where they are actually based. Many Ryanair crews have their contracts in Ireland where the social security contributions are relatively low (4% if I am not mistaken). In other European countries, the contributions can go above 15%! Not only that... Ryanair contracts pilots (especially cadets) through agencies managing some form of companies registered in Ireland where the pilot is so called "self-employed". An interesting side effect of this is that Ryanair does not pay social security contributions on top of the pilot. I am quite confident that this set up would no longer work once a pilot would have to pay contributions for himself in other countries than Ireland. On the contrary, I can hardly imagine that every European country other than Ireland would accept that a citizen does not generate social security contributions from his employer on the basis that he is "self-employed"...
The new European regulation has granted "grandfather's" right for the crews already in the system before June. These rights are valid for 10 years. It means that if, before June, you had an Irish contract with minimal social security contributions from you and none from Ryanair, even if you are based in another European country, you still benefit from your initial situation. The regulation says: "if your situation does not change"... and this is very vague and maybe a key-point in the whole story.
My question is: do you know what "if your situation does not change" actually means? Are they talking about a change of "base country"? Are they talking about a "change in the contract country"?
This is very important in my humble opinion because it can mean that Ryanair will never take a risk of changing your base according to your wishes. Not necessarily because they would care about keeping deductions from your salary low but surely because they would be scared of having to pay employer's social security contributions themselves!
Do you know of anyone who has obtained a base change from any country to another (except Ireland) since June?
This is a very serious question too: it can simply mean that you are stuck in your undesired base FOR EVER. I know of dozens of Ryanair pilots who are unhappy with their present base and who would sell their soul to move at any price and this little nasty European regulation can simply mean: you will NEVER get a base change. Ryanair has another problem then because pilots will leave in herds if they now know they will be stuck at a place they cannot stand.
Lastly, has anyone started a contract "self-employment" style since June and is based out of Ireland? What social contribution and in which country is he/she paying? Ireland or locally in respect of the new regulation?
Thanks for your inputs!
Last edited by emergencyexit; 18th August 2012 at 08:09.