Housing allowance

[Rook]

When I accepted the job as DESO, I was told that the housing allowance was 14000HKD per month flexible up to 24,000HKD per month. I hear rumors now that the housing allowance changes with the market. However, this isn't in the CoS08 I signed. How does this work now?

[broadband circuit]

By my understanding of the COS it simply states that the company will provide a housing allowance that matches the market.



That clause is then implemented in practice by the housing policy.

The idea behind the mechanism was that we would be able to rent the same standard of house regardless of whether the market moved up or down.

SOs get less for the first 2 years (I think), and I'm not sure how that mechanism works, but after that, you'll be on the full allowance.

[Subwoofer]

This is what I understand, for you new joiners...
I only have experience as a renter (hopefully that will change with the market soon), and once you sign a lease, your monthly allowance is locked in until you sign another lease. Until you sign that lease though, the rate varies by the market.

[Rook]

Great, thanks very much.

[no_poster]

do me a favour and use the housing allowance for good use and buy somewhere! Its free money so use it to pay off somewhere. sick of you guys whinging you dont get paid enuff, when you dont use it properly. try getting ahead with no housing allowance.

[psy clops]

Rook wrote: this isn't in the CoS08 I signedCould you check your COS again? It's my understanding that if you are employed onto the HK base you should still be on COS99, irrespective of your DoJ. COS08 should be for based pax DEFOs only (unless you came across from Oasis or Dragon of course...)

[Mogas]

Does Cathay give you a free house like Emirates?

[MAX]

psy clops,

Apparantly new SO's have a a slightly different contract which says there is no entitlement to bypass pay for a miminum period (24 months rings a bell).

Not 100% though.

MAX:cool:

[HEALY]

ROOK

Just gone thru the process of renting a place. The 14 grand is given to people that cannot/or do not have there name to a place. This would the case of someone commuting for example but obviously still based in HK. People may use it to pay for a hotel or bum a couch at a mates place.
The amount you get paid for housing does change with the rental market (monthly). At the moment it is in the region of about 32000 per month.
When you go and have a look at places you can indicate clearly that you only want to go up to the CX amount so you dont dive into your own pay. Most agents are fully aware of this and helpful.
CX WONT just give you the max amount. When you find a place CX will assess the place and determine if the amount being asked for rent matches the place (ie condition, location, value). If all good CX will then provide you with 2 months rent plus normally 1 month deposit which you may have to initially pay ( You get it back) to get your name to the place.
There will also be the cost to you however of Commission. If you use the agent that is contracted to CX its zero, however all other agents will expect between 25% to 50% of one months rent.
When you get here (if you haven't already) you get briefed on all this on you induction day.
This hopefully helps with renting at least.

[bretofdfw]

I am also entering as a DESO, but am curious. What is the HA for FO's or Captains?

[Sqwak7700]

Make sure that the first thing you ask an agent before you use them is if they charge a fee. If they say they do, then move on. Most will say they don't. Do not let them show you places if they charge a fee.

Another option is having them show you places, and then let them know that you are also using Saville, which is Cathay's agent, and that they will not be charging a fee. This will put some pressure on them to re-negotiate without a fee.

And for god's sake, don't sign anything on the first day!

[Harbour Dweller]

August Rental Housing Allowance

* you must have a contract with landlord to claim amount below

SO (0-2yrs) HK$ 32 350 /mth
SO (2yrs+) HK$ 64 700 /mth
FO HK$ 64 700 /mth
CN HK$ 101 700 /mth

[thehes]

Harbour Dweller - What are the amounts you can claim if you take in cash payment? Is the tax rate 16%? It would seem you might be better taking cash if choosing to live with a roommate.

[Harbour Dweller]

Base Rates - Cash

* no contract required to claim amounts below
* amounts will be taxed at 15%

SO (0-2yrs) HK$14 000 /mth
SO (2yrs+) HK$18 000 /mth
JFO & above HK$24 000 /mth

[thehes]

That is an amazing difference as you move up the ladder. Is there any reason one would NOT sign a lease upon reaching FO/Captain? Is there a significant difference in the number of renters versus buyers?

[christep]

Is the tax rate 16%?No, 15% with effect from April 2008. http://www.ird.gov.hk/eng/tax/ind_tra.htm#st_rate

[Numero Crunchero]

Just to add to the above info - once you have done 8 years you rental ceiling is 1/2 way between Fo and CN - so about 82-83K?

Now, onto the tax.
If you are purchasing a place then you pay tax on the entire allowance.
If you have no lease(ie renting a hotel room for less than base rate or bunking with a friend) you will have the base rate added to your salary, then pay tax on the combined amount.
If you rent above the base rate and below the ceiling for your rank/years of service then you will have 10% added to your salary and then be taxed (15%) on that increased amount. So, an FO renting a place for say $60K earning say $65K will pay nothing out of his pocket for rent as the $60K is less than the ceiling. As far as IRD are concerned they will add 10% to his salary and tax that - so $65K+6.5K=$71.5K >> 15% tax on that is $10.7K.

If you rent above the ceiling, say renting for $69700 as a 7 year employee (ceiling $64,700) then you are paying $5k out of your own pocket. The tax works like this....you earn $65K - add 10% +$6.5K but reduce by amount paid above allowance(up to a maximum of the 10%) of -$5K - so taxable income becomes $65K+6.5K-$5k=$66.5K >>15%=$9.97K
You do NOT pay tax on the entire salary assistance(unless you are buying or only getting base rate) - you have your pay pseudo increased by 10% to account for the fact that you are receiving housing assistance.
clear as mud?

PS If you decide to rent a place for less than the base rate, you get taxed on the full base rate regardless of the amount. So if you are entitled to get $24K base rate, you rent for $23K, you still get taxed as if the $24K was in your pocket....if you rented for $25K then you would have 10% of your salary added, as explained in the example above, and be better off than if you rented for $23K!

[bretofdfw]

Is there a difference in the rates you quoted earlier for SO/FO/Capt based on whether you rent or buy?

[ACMS]

Local Captains get $24,000 month, the rest zero.

I would like all local crew to get the allowance but they are "locals" after all.

No different to our based crews, they are "locals" in their own country and get zero expat allowances. They don't even get a car park at the airports like QF, VB, JQ, BA pilot's and other staff do.

[ACMS]

I don't have access to local pay scales.
I'd only be guessing and that's not fair.

S/O to JF/O takes about 3 to 4 years I think, although this has been extended by the Oasis guys/DEFO guys/extendees/KA guys all taking up the available training slots. tut tut cx

[BlunderBus]

it's easy...you sign a 'contract' to suck you in and the company changes it at will...hello