Originally Posted by
Good Beer
There is a COLA, $3500 per month is the Min housing allowance per month, it adjusts upward quarterly when the Dept of state foreign Max Per diem Rate (MPDR) goes up 10% (resets to the new MPDR). You did read the LOA right?
It just cracks me up that people think it isn't doable when an FO in the EMEA will be making more than 95% of the population there, and paying less tax's to boot.
The new housing allowance benefits (floor + future adjustments) are a big improvement --- for HOUSING.
It's a big step in trying to bring our highly experienced pilots near equity with military pilots serving abroad in Europe in Asia (...though still below those govt rates).
But given all that, there is still NO COLA for the rest of your paycheck.
While housing may be your biggest monthly payment, you most likely spend plenty of your paycheck in other areas (...and remember, there is no FEDEX BX to keep you spending at US rates for your household goods).
An additional COLA is standard with all military packages and many other foreign expat packages.
The company will earn/spend Euro's in Europe to run their operation --- they only have a "currency risk" when the repatriate their profits or budget long term capital expenditures.
Those pilots living in the FDA will have to develop strategies to offset their own person currency risk.
The new TA has made steps to do this for housing --- but certainly not the rest (...or at least a portion) of the rest of your paycheck.