Understanding Pay Components

What each pay component means and how the calculation engine uses it.

Earnings

Basic Salary

Your fixed monthly base salary, paid regardless of hours flown or sectors operated. This is the foundation of your pay — many other components (like percentage-based deductions) are calculated from this amount.

Basic Salary: 15,000 SAR / month (fixed)

Housing Allowance

A fixed monthly addition to cover housing costs. Common in GCC airlines where housing is provided as a separate line item rather than part of the base salary.

Housing Allowance: 5,000 SAR / month (fixed)

Transportation Allowance

A fixed monthly addition for commuting and transportation costs. Like housing, this is a standard allowance at many airlines and is paid every month.

Transportation Allowance: 1,500 SAR / month (fixed)

Flight Pay / Block Hour Pay

Compensation based on the number of block hours you fly in a month. Uses the Rate × Quantity rule — you set a per-hour rate in your Pay Profile, then enter the hours flown each month in the Salary Calculator.

Block Hour Rate: 65 SAR × 85 hours = 5,525 SAR

Sector Pay

Paid per sector (flight leg) operated. Common at low-cost carriers where pay is heavily tied to the number of flights rather than block hours. Uses the Rate × Quantity rule.

Sector Rate: 150 SAR × 24 sectors = 3,600 SAR

Layover Pay / Per Diem

A daily allowance for time spent away from your home base. AeroLedger supports separate domestic and international per diem rates, since international layovers typically pay more. Enter your layover days each month and the engine calculates both automatically.

Domestic: 200 SAR × 5 days = 1,000 SAR | International: 350 SAR × 8 days = 2,800 SAR

Overtime Pay

Extra pay for flying beyond a threshold number of hours. Uses tiered brackets — you define a base hours threshold and a rate multiplier for hours above it. The engine calculates overtime automatically based on your total block hours.

Base threshold: 80 hours | Above 80: 1.5× rate | 90 hours flown = 10 hours OT = 975 SAR

Bonus Pay

Flat-band or tiered bonuses triggered by block hour thresholds. AeroLedger checks which tier your monthly hours fall into and applies the corresponding bonus amount.

Block hours ≥ 70: 2,000 SAR bonus | Block hours ≥ 90: 4,000 SAR bonus

Reimbursement

Annual capped claims (such as schooling or uniform allowances) that are spread evenly across months. You set the annual cap and AeroLedger divides it into monthly amounts.

Annual schooling: 12,000 SAR / 12 months = 1,000 SAR / month

Deductions

GOSI / Social Insurance

Saudi social insurance deduction, calculated as a percentage of your basic salary. Automatically included for Saudi-based users. The percentage is set by regulation but can be adjusted in your Pay Profile if your employer uses a different base.

GOSI: 9.75% of 15,000 SAR basic = 1,462.50 SAR

SANED

Saudi unemployment insurance contribution, also calculated as a percentage of basic salary. Like GOSI, this is automatically included for Saudi-based users and deducted before your net pay is calculated.

SANED: 1% of 15,000 SAR basic = 150 SAR

Tax / Statutory Deduction

A percentage-based deduction for income tax or other statutory obligations. Used by pilots in countries with income tax. The percentage is applied to your basic salary.

Income tax: 20% of 15,000 SAR basic = 3,000 SAR

Other Deduction

A fixed monthly deduction for anything not covered by the other categories — union dues, loan repayments deducted at source, insurance premiums, or any other recurring deduction.

Union dues: 250 SAR / month (fixed)

How Components Work Together

The Pay Engine always processes earnings before deductions. It adds up all enabled earning components to produce your gross salary, then subtracts all enabled deductions to arrive at your net salary.

Tip: If a component is enabled but has no value set, it contributes zero to the calculation and shows as "needs setup" on your dashboard. It won't cause errors — but you'll want to configure it for an accurate result.