Experienced and trained pilots are leaving Pakistan International Airlines (PIA) due to higher taxes and low salaries, which has resulted in operational challenges and difficulties in managing day-to-day operations, according to official documents available with ProPakistani.
From 2018 to 2022, 79 pilots have separated in a natural way i.e. upon attaining the age of superannuation. From June 2022 to May 2023, 25 pilots opted for separation (early retirement and resignation) from the service of PIACL.
Out of these pilots, 15 were flying as captains on B777 and A-320 aircraft, whereas 10 were flying as first officers. In 2020, 17 pilots opted for Voluntary Separation Scheme (VSS).
Due to normal attrition and optional separation, the airline is facing a shortage of trained pilots, which has resulted in operational challenges and is facing difficulties in managing day-to-day operations. Moreover, post-Covid, the demand for pilots has increased in the market.
Previously, due to the suspension of the SRO notified by the federal government the tax ratio was lesser whereas, after the withdrawal of the same SRO, the tax ratio increased to 32 percent which decreased the take-home salary of the pilots. Secondly, attractive salaries offered by the other commercial carriers of the region are an important factor.
Other airlines are offering striking salary packages to experienced pilots, which is much better than what is offered by PIA. Recently PIA put up a revised allowances structure for pilots before the PIACL Board of Directors which is under consideration by the Board.
To compensate decrease in take-home salary due to the imposition of tax on pilots’ salaries, PIA has raised the flying rate from 20 to 35 percent as per their length of service.
In addition to this, domestic and international slip payment/allowance has also been doubled. With this revision, the take-home salary has increased thereby the impact of tax deduction has significantly been adjusted.
Source: Pro Pakistani