HighFlight

I never said per diem is compensation for work. I said it is money in the bank. That is not invalid in any way. I don't factor it into salaries when I compare jobs, because per diem may be zero in a given month. But it's still income, and it pays the bills.

HighFlight

I agree with you that for airline salaries, things like per diem and benefits should not be included. Caveat emptor, I guess.

As for the $6,200, I was told it was everything that they can think of, such as hotels, insurance, disability, etc. They are milking it for everything they can. If you REALLY want to be blown away by how little you make, take a look at TSA: http://www.transstates.net/Pages/home.aspx

As for considering it in your calculations goes - Doesn't matter quite as much at the regional level. But when you are looking higher, things like 401K input becomes a big issue. As does comparing a 401K to a B plan retirement. And profit sharing. Not part of a salary, but certainly money in the bank at the end of the day.

sweetholyjesus

If you were actually paying attention to the conversation that you interjected into (which is welcome here ) you would have seen that the argument was primarily about dummies calling the per-diem part of their labor compensation/salary. You put yourself on the wrong side of that argument.

You certainly have the option to eat cat food on your overnights and pocket the extra money. But it is not "income". It is a reimbursement. But I guess you could always eat nothing for 4 days and maximize your "income"

HighFlight

Tomato, tomatoe. Whatever makes you feel better, call it that. Not everyone eats airport food. Not everyone eats out. Not everyone eats at home when they are at home. It's all about choices, and where you wish to allocate the funds you have available. Speaking of which, per diem is direct deposited into my bank account, along with the rest of my pay(s) and those funds are available for me to spend as I desire.

sweetholyjesus

Well this makes a bit more sense, kind of like Flymeaway explained. How many other companies tell you you'll make $65,000 but only $40,000 is actual cash, the rest is benefits and reimbursements?? It's false advertising, pure and simple.

sweetholyjesus

Doesn't matter what you choose to eat, or even what you choose to do with the money. The money is put in there for a single purpose. Airlines are required to reimburse you for your costs on the road, they don't pay it because they want to... Per-diem is not something that they can tout as a source of income that they pay you, and you shouldn't be advertising it that way either.

HighFlight

Dude, cat food? Are you serious? Why didn't I think of that sooner? Thanks jesus!! You just taught a man to fish.

Tippy

THIS.

its income if you consider it, its not if you don't. If someone chooses to eat cheap and pocket most of it and use it for life expenses so be it, he chooses to do so and to that guy its income. Others use it for its dictionary definition and eat out while on the road. Im somewhere in the middle, sometimes i pack food and eat cheap, others i eat out a lot.

It is whatever you want it to be.

HighFlight

Well, since we are pole vaulting over tick turds, let's be clearer.

1) You are not receiving per diem, you are receiving M&IE, since you are not required to pay for your own lodging. But it is commonly called per diem as a blanket term.

2) Per diem (Latin for "per day") is a daily allowance, not a reimbursement. (You are not required to buy food on the road, therefore cannot be reimbursed for something you did not purchase). Allowances, when it comes to pay, are typically not taxed. One exception that comes to mind is CONUS COLA - that one is taxed. (Per diem IS taxed, if the employer pays more than the allowed federal rate, so usually the employer pays less, and puts the burden of claiming the difference come tax time.)

3) Airlines are not required to pay you a per diem allowance. They do so because it has become the norm, a way to offset the high cost of living away from your home domicile. If they didn't pay it, you would simply claim all of the 80% of $63 per day (2017 the government allows when you filed your taxes. It would be the same amount of money as you get now, just once per year. Companies pay it monthly to make things more affordable to employees so as to attract them.


Source: https://www.irs.gov/pub/irs-regs/per....prn.pdf#page2

If you really want to raise a stink, we can talk about how tips paid to van drivers are not valid deductions on your tax return.

Happyflyer

What company do you work for? $5k a month for 85 hours is $59 an hour. Your are an FO in an RJ?