Final Wages at Sea: How and When a Seafarer’s Last Salary Must Be Paid

Final Wages at Sea: How and When a Seafarer’s Last Salary Must Be Paid — and What Guarantees Protect It

For every seafarer, the moment of signing off a vessel is not only the end of a contract but also a critical financial checkpoint. It is the stage when the shipowner’s compliance and transparency are tested.
The final wage payment is more than a routine transaction — it is a legally binding obligation, governed by international conventions and flag-state laws that protect the seafarer’s rights.

1. Legal Framework: What International Conventions Say

The key legal document governing seafarers’ pay is the Maritime Labour Convention (MLC 2006).
Its Regulation 2.2 “Wages” and Standard A2.2 state clearly:

“Seafarers shall be paid at least once a month and not later than seven days after the end of the wage period or upon termination of employment.”

Other relevant provisions include:

• Standard A2.5 (Repatriation) — requires shipowners to settle all outstanding wages before repatriation;

• Standard A2.1 (Seafarer’s Employment Agreement) — ensures that seafarers receive final payment upon completion or termination of their SEA.

Additionally, ILO Convention No. 95 (Protection of Wages) and MLC Guideline B2.2.1 stipulate that no portion of wages may be unlawfully withheld and that all wage records must be transparent and verifiable.

2. When Final Wages Must Be Paid

The final wage settlement is due:

1. On the day of sign-off, when possible onboard;

2. Within seven days after repatriation, if handled through the company’s office or manning agency;

3. By bank transfer, if stipulated in the Seafarer’s Employment Agreement (SEA) or allotment arrangement.

Flag administrations generally require that all financial settlements be completed before the seafarer’s discharge (sign-off) and properly documented in the Crew List and Wage Account.

3. Documents a Seafarer Must Receive

Upon sign-off, a seafarer must be provided with a complete set of financial and legal documents confirming the settlement:

1. Final Wage Account — a statement showing:

   • employment period;

   • all earnings (basic pay, overtime, bonuses, allowances);

   • all deductions (taxes, advances, communication, etc.);

   • final balance payable.

2. Seafarer’s Employment Agreement (SEA) — endorsed as “Contract completed” or “Signed off”.

3. Receipt of Payment / Acknowledgement — signed by the seafarer confirming receipt or acceptance of bank transfer.

4. Discharge Book / Seaman’s Book — officially endorsed with the date and port of discharge.

5. Repatriation documents (if applicable) — travel ticket, port clearance, or other relevant records.

4. Payment Guarantees and Financial Protection Mechanisms

a) Shipowner’s Financial Security

MLC 2006 requires every shipowner to maintain a Financial Security System, ensuring payment in case of:

• non-payment of wages;

• crew abandonment;

• shipowner bankruptcy or arrest.

This system is backed by P&I Clubs (Protection & Indemnity insurance), and details must be displayed onboard in the MLC Certificate (Part II – Financial Security).If wages remain unpaid, the seafarer may file a complaint with:

• the Master or ship management office;

• the Flag State Administration;

• or the Port State Control (PSC), which can detain the vessel until full payment is made.

b) Flag-State Practices

Each flag administration sets its own procedural deadlines:

• Liberia, Panama, Cyprus — require final wage settlement within five working days of sign-off;

• Malta, Marshall Islands — allow up to seven to ten days for bank transfer;

• UK, Isle of Man, Singapore — require written proof of payment and a signed Payroll Statement.

5. The Role of the Master and Port Agent

The Master is responsible for ensuring compliance and accurate documentation:

• signing the Final Wage Account;

• recording completion in the Discharge Book;

• notifying the company office of the seafarer’s departure and payment status.

The port agent must verify that the seafarer receives:

• all relevant documents and wage slips;

• repatriation tickets;

• and, if necessary, a local payment arrangement.

6. Disputes and Seafarer Actions

If a seafarer’s final wages are delayed or unpaid:

1. File a written complaint with the Master or company.

2. Escalate to Port State Control (PSC) or the ITF (International Transport Workers’ Federation).

3. ITF inspectors can intervene and even detain a vessel until all wage arrears are cleared.

4. In cases of company insolvency, payments are covered by P&I financial security.

Importantly, under MLC 2006, a seafarer cannot be prevented from repatriation due to wage disputes — they retain full rights to leave the ship, with payment handled later through insurance or flag-state mechanisms.

7. Practical Advice for Seafarers

1. Always keep copies of your SEA, Wage Slip, and Crew List.

2. Regularly review your monthly allotment statements for accuracy.

3. Request and verify your Final Wage Account before signing it.

4. Never rely on verbal promises of later payment — demand written confirmation.

5. If the vessel changes flag or management, ensure the new operator acknowledges pending wages.

8. If the Shipowner Refuses to Pay

Under MLC Regulations A5.1.4 and A5.2.2, the seafarer may appeal to:

• the Flag State Inspector;

• the ITF or local union;

• or the Port State Authority.

Complaints must be handled within 10 days, and non-payment of wages is a valid ground for vessel detention.

Conclusion

The final wage payment is not just a matter of bookkeeping — it is a test of maritime ethics and legal compliance.
The MLC 2006, ILO Convention No. 95, and national flag laws provide a robust framework that ensures every seafarer is paid fully and on time.A knowledgeable seafarer who understands their wage rights, documentation, and complaint mechanisms is always protected — both financially and professionally.