Originally Posted by
midnight cruiser
Am I right in thinking expats are much cheaper than locals to the company, because Turkish companies pay the same NET (after tax) pay to both expats and locals -
BUT the TAX they pay on behalf of the local pilot is much much higher (about 5%-10% for the expat, 30-40% for the local)? - So the GROSS cost of the local is much higher.
In most countries, pilots are paid the same GROSS salary, (not the same Net salary). If Turkish paid the same gross pay to expats, as they do to locals, it would be more competitive. It is disingenuous of the locals to complain that expats get a better deal, because the opposite is true - In reality the expat's pre-tax pay is far lower.
As an retiring expat, just try and claim your Turkish state pension for example, and see how far you get!
Taxation is the same. The difference is that as an expat you might have to pay the difference between taxation in Turkey (5%) and in your own country. You can recover your paid contribution quite easily if you don't reach minimum years for pension payment..just to be factual.