Seafarers’ Wages on Board: Structure, Overtime, and Global Trends

1. International Standards for Seafarers’ Pay

Seafarers’ wages are regulated by international bodies — primarily the International Labour Organization (ILO) and the International Transport Workers’ Federation (ITF).
These institutions establish and periodically revise the minimum wage benchmarks for seafarers under the Maritime Labour Convention (MLC 2006).As of 1 January 2025, the basic wage for an Able Seaman (AB) is set at USD 673 per month, while the total monthly income, including leave and holiday pay, averages around USD 1180.
Officers earn significantly higher salaries: a Master receives approximately USD 3980, a Chief Engineer around USD 3600, and a Chief Officer about USD 2570.These rates are derived from ITF/ISF agreements and are widely adopted by shipowners operating under internationally recognized flags.

2. Structure of Seafarers’ Wages

A seafarer’s monthly remuneration typically consists of several key components:

1. Basic Pay – the fixed monthly salary, independent of voyage duration or port schedule.

2. Overtime (OT) – payment for work exceeding the standard hours.

3. Leave Pay – compensation for accrued paid leave days.

4. Leave Pay for Public Holidays – additional pay for work performed on national or international holidays.

5. Bonuses and Allowances – performance-based incentives for safety, fuel efficiency, and operational discipline.

3. Overtime: Definition, Calculation, and Practice

Overtime refers to remuneration for working hours beyond the standard limits — 8 hours per day or 48 hours per week.

Calculation of Overtime

• The base hourly rate is calculated as:
  (Basic Pay × 12) ÷ (52 weeks × 48 hours)

• Overtime is paid at 1.25 times the basic hourly rate.

• Most contracts include a guaranteed overtime of 104 hours per month, paid regardless of whether those hours are fully utilized.
  This ensures a stable income component and avoids disputes over variable workload.

• Additional hours beyond this limit must be approved by the Master and recorded as Extra Overtime in the Payroll Statement.

Who Earns Overtime

• Ratings (AB, OS, Pumpman, etc.) are most affected by overtime due to port operations, mooring, and deck maintenance.

• Officers typically do not receive overtime, as their managerial duties are covered by a higher fixed salary.

Thus, overtime forms a core part of total income for ratings, while for officers it is implicitly included in the base pay.

Regulatory Limits

Under MLC 2006 (Standard A2.3), working hours must not exceed:

• 14 hours in any 24-hour period, and

• 72 hours in any 7-day period.

Any work performed beyond these limits must be treated as overtime and compensated accordingly.
If regular violations occur, the Master must either adjust the schedule or provide compensatory rest.

4. Leave Pay and Public Holiday Pay

Leave Pay represents paid annual leave, calculated at 2.5 days per month of service, or roughly 30 days per year.
Leave Pay for Public Holidays is an additional payment for working on official holidays while the ship remains in operation.Public holiday pay is not covered by regular overtime if it falls outside the guaranteed hours.
Therefore, both Leave Pay and Holiday Pay are separate wage components, ensuring that seafarers are fully compensated for all working days, including national holidays.

5. Transparency and Payroll Control

According to MLC 2006, wages must be paid monthly, in full, and in the agreed currency.
Every seafarer must receive a Payroll Statement, clearly listing all components: base pay, overtime, leave pay, holiday pay, and bonuses.Compliance is monitored by ITF, IBF, and flag or port state control authorities.
If discrepancies are found (e.g., unpaid overtime or incorrect deductions), the company must issue a correction and pay the outstanding balance immediately.Such transparency ensures trust between seafarers and employers and reinforces fair labour practices at sea.

6. Trends and Wage Growth Forecast

The global maritime labour market continues to experience inflation and a shortage of qualified personnel.
Between 2024 and 2026, international wage frameworks project an average increase of 3–5% per year to maintain real income levels.Shipowners are increasingly adopting hybrid payment models combining:

• a fixed salary plus guaranteed overtime,

• performance bonuses,

• loyalty or retention payments for long-term service.

Wages in the tanker, LNG, and offshore sectors remain the highest due to higher technical complexity and safety responsibilities.

7. Principle of Fair and Equal Pay

The cornerstone of MLC 2006 is the principle of “Equal Pay for Equal Work.”
Differences in pay must reflect rank and responsibility, not nationality or origin.
ITF and IBF actively promote unified global pay scales, ensuring that all seafarers performing the same duties receive the same remuneration under comparable conditions.

8. Conclusion

A seafarer’s salary is more than just a figure — it is a structured system built on fairness, transparency, and international standards.

• Basic Pay ensures stability,

• Overtime rewards real effort,

• Leave Pay protects rest rights,

• Bonuses promote excellence.

As of 2025, wage structures show steady growth, improved transparency, and greater alignment across fleets and nationalities.
The ultimate goal remains the same: to guarantee that every seafarer — on any flag, in any ocean — receives fair, timely, and dignified compensation for their essential contribution to world trade.