Pilot pay rates and longevity
Have you ever looked at the hourly pilot pay rates and wondered what it actually means? Hopefully this little look at pilot pay helps clear up some of your questions.
Longevity is applied to the graduated pay scale used to determine pilot pay. Longevity step increases occur on the anniversary of the pilot’s date of hire. For example, A pilot hired on August 1, 2008 shall be paid at step two or “second year” pay for work performed after August 1, 2009. Longevity is a function of time at the company and not in any particular aircraft or position, Captain or First Officer.
Example Pay Scale, EMB145
Year Captain First Officer
1 60 23
2 62 33
3 64 35
4 67 37
5 69 40
75 Hr MMG
An Airline Pilot’s monthly pay is generally the sum of three key sources: Minimum Monthly Guarantee, Per Diem, and Additional Pay.
Minimum Monthly Guarantee (MMG) - A pilot is typically paid a minimum monthly guarantee (MMG) of paid hours of hourly pay at the applicable rate, provided that the pilot is available for assignment for the entire month
Per Diem - Per Diem is meant to cover costs incurred while on the road. These include but are not limited to: food, toiletries, replacement costs, etc. Per Diem is typically an hourly rate that is negotiated in a union's CBA (contract). Per Diem gets paid differently than straight compensation. Typically it is computed beginning at the time you are required to be at your base airport to the time you get released at your base airport to days off. Generally speaking a pilot reports to their workstation an hour prior to flight time on the first day and ends their duty 15 minutes after their last flight. All hours in between are paid at the Per Diem rate.
Additional Pay (Add Pay) - Additional Pay is any flight time pay for work a pilot performs above the minimum guarantee to include any paid vacation time, voluntary additional flying, or mandatory reassignment or loss of days off.
Consideration should also be taken in how a pilots monthly pay is dispersed. A common method is to pay pilots bimonthly with the following breakdown for each paycheck
The first paycheck contains half of the pilots MMG.
Example: first paycheck covering approximately two weeks will be payment for 37.5 flight hours. No Per Diem, No Add Pay.
Paycheck 1
862.50 (23/Hr X 37.5Hrs)
862.50 (Total Payment)
The second paycheck contains the second half of the pilots MMG, all Per Diem accrued during the previous month, any Add Pay from the previous month.
Example: second paycheck covering approximately two weeks will be payment for 37.5 flight hours, 322 hours Per Diem, 5 hours Add Pay.
Paycheck 2
862.50 (23/Hr X 37.5Hrs)
579.60 (1.60/Hr X 322Hrs)
115.00 (23/Hr X 5Hrs)
1557.10 (Total Payment)
Total income for the month
$2419.60 (before taxes)
80 flight hours
322 hours away from base