Originally Posted by
davidj1
Thanks for clarifying.
Seems weird getting an allowance for something that everyone needs to pay for. Usually you can claim for a deduction if you incurred the expenditure in order to generate revenue (ie salary from a job). I'm not sure how rent can be classed as revenue earning costs? Is this a local HK thing?
The tax 'paper work' or allowance I'm assuming will continue with Cathay? If there is no cost to Cathay why would it cease?
The reimbursement portion really seems like pure cash remuneration, dressed up as a reimbursement. So really while its being called slashing "housing packages" its really just cutting their take home remuneration?
sxc, it might be worth understanding this in order to precisely understand the real impact for pilots?
Until a few years ago most companies in HK offered these housing allowances to expat employees, it was part of the enticement to move their families half way around the world.
It is really just a tax efficient addition to your salary package, thus CX is proposing to cut the wages of its senior pilots by 100k. You can understand why they're not happy.