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Seafarer allotment is the system that allows seafarers to send a portion of their wages directly to their family or dependants while they are at sea. For the majority of the world’s maritime workforce — particularly crew from the Philippines, India, Indonesia, Ukraine, and other major seafaring nations — allotment is a critical financial lifeline. Understanding how it works, what your rights are, and how to set it up correctly can save you time and money on every contract.

Under the Maritime Labour Convention 2006 (MLC 2006), seafarers have the right to transmit all or part of their wages to their families at no cost, or at a cost that is reasonable and not higher than the actual cost of the transaction. This is a legal protection — not a benefit — and every employer operating under MLC-compliant flag states is required to facilitate it.

What Is a Seafarer Allotment?

An allotment is an agreed monthly deduction from your wages that is transferred to a nominated bank account — typically that of a spouse, parent, or other dependant — while you are serving on board. The remainder of your wages, after the allotment and any other deductions, is either held on board as balance of wages or paid into your personal account at the end of the contract.

Most seafarers set up a regular monthly allotment at the start of each contract by completing an allotment note or allotment form with their employer or manning agent. The form typically specifies the amount in USD (or another agreed currency), the beneficiary’s name, bank account number, and bank details.

How the Allotment Process Works

• At sign-on, complete the allotment form provided by your employer or manning agent
• Specify the allotment amount and the beneficiary’s bank account details
• The company deducts the allotment from your monthly wages and transfers it to the nominated account
• Transfers are typically made by the 7th–15th of each month, depending on the company’s payroll cycle
• You receive a payslip showing your gross wages, allotment deducted, and any other deductions
• At sign-off, outstanding wages are settled in full

In practice, most allotments go through the company’s payroll department or the manning agent, which then uses a bank or money transfer operator to credit the beneficiary’s account. The speed and fees involved depend on the payment corridor — transfers to the Philippines or India, for instance, are typically fast and well-supported by the banking system.

MLC 2006 Protections for Seafarer Allotments

Additionally, regulation 2.2 of the MLC 2006 (Wages) sets out the framework for seafarer pay and allotments. Key provisions include:

• Seafarers are entitled to receive their wages in full at no more than monthly intervals
• Allotments must be transmitted within one month of the deduction
• Any charges for transmitting allotments must be reasonable and disclosed in advance
• Seafarers must be given a written account of their wages (payslip) each payment period
• Employers cannot require seafarers to use a specific bank or money transfer service as a condition of the allotment right

“I’ve sailed for 14 years and allotment has never been a problem on reputable vessels,” says a veteran AB from Cebu with experience on bulk carriers and container ships. “But I’ve heard stories on smaller operators — always check your payslip against what your family receives. If there’s a shortfall, raise it with the Chief Mate or Master immediately and document it.”

Currency Considerations and Exchange Rates

Furthermore, most seafarer wages and allotments are denominated in US dollars, regardless of flag state or nationality. When the allotment reaches the beneficiary’s country, it is converted to the local currency at the prevailing rate. This means the actual amount your family receives in local currency can fluctuate from month to month even if your allotment amount is fixed.

Some seafarers choose to hold allotments in USD accounts (where the banking system permits) to avoid unfavourable exchange rates, or they time larger transfers when the exchange rate is favourable. In the Philippines, for example, Bangko Sentral ng Pilipinas (BSP) provides reference exchange rates, and many banks offer remittance products specifically designed for OFW families.

Common Issues and How to Resolve Them

• Delayed allotment: If your family has not received the allotment by the expected date, check your payslip first. If the deduction was made but the transfer is delayed, contact your Manning Agent or the company’s payroll department in writing.
• Incorrect amount received: Compare your payslip deduction to the amount received. Discrepancies may be due to bank charges at the receiving end — clarify the fee structure with your employer.
• Wrong bank account: Always double-check account numbers on the allotment form before signing. Errors are difficult to reverse once a transfer has been made.
• Allotment not set up: If you signed on without completing an allotment form, contact the Chief Officer or Purser as soon as possible — it can usually be set up within the first pay cycle.

Digital Remittance Options for Seafarers

Beyond the traditional company allotment system, many seafarers now use digital remittance platforms to send money home independently — particularly for top-up transfers or when shore leave allows access to banking services. Platforms such as Wise (TransferWise), Western Union, and MoneyGram are widely used in maritime communities for their competitive exchange rates and fast transfer speeds.

Some ship operators and manning agencies have partnered with fintech companies to provide crew with digital wage wallets and low-fee remittance options. These can offer better rates than traditional bank transfers, but always verify the platform is licensed and regulated in your home country before using it.

For broader financial planning resources, see our Seafarer Salary Guide by Rank and the Seaplify blog for related guides.

Frequently Asked Questions

What is a seafarer allotment?
A seafarer allotment is a regular monthly transfer of a portion of a seafarer’s wages to a nominated beneficiary — usually a family member — while the seafarer is on board. It is set up via an allotment form at the start of a contract and is protected under MLC 2006.

Is a seafarer entitled to an allotment by law?
Yes. MLC 2006 Regulation 2.2 gives all seafarers the right to transmit wages to their families. Employers must facilitate this at no cost or at a reasonable cost, and must transmit the funds within one month of deduction.

How much of my wages can I allot?
There is no fixed maximum under international law, but most companies allow allotments of up to 80–90% of monthly basic wages. You must retain enough wages to cover any on-board deductions. Check your Collective Bargaining Agreement (CBA) or employment contract for the specific limit on your vessel.

What should I do if my allotment is not received?
First check your payslip to confirm the deduction was made. If the deduction was made but not received, contact your Manning Agent or the vessel’s operator in writing. MLC 2006 provides a formal grievance process — document your complaint and, if unresolved, you can raise it with the Port State Authority or your flag state.

Can I change my allotment amount during a contract?
Yes, in most cases. Speak to the Chief Officer, Purser, or Master to request a change. Changes typically take effect from the next payroll cycle. Keep a signed copy of any amended allotment note for your records.

Conclusion

Importantly, seafarer allotment is a fundamental financial right that connects crew members to their families across the world. Knowing how the system works — and what to do when it does not — helps you protect your income and your family’s financial security.

For seafarers planning their next career move or looking for vessels with reputable operators who pay on time, explore maritime job opportunities at Seaplify.

For official maritime standards and further information, visit the International Transport Workers’ Federation (ITF).