[PDF]What Seafarers Should Know About Remittances

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What Seafarers
Should Know About
Remittances


by Barista Uno



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This guide was written and
edited by Barista Uno of the
popular Marine Cafe Blog. It
contains essential information
about seafarer remittances —
what ILO Maritime Labour
Convention, 2006, says on the
subject; the remittance rules of
the Philippines and India; and
some steps seafarers can take
to protect their hard-earned
money.

The guide is free to copy,
share and distribute.






The Rules on Remittances
Under ILO Maritime Labour
Convention, 2006



ILO Maritime Labour Convention, 2006, as amended, lays down
certain rules and guidelines pertaining to seafarer remittances.
The following are the most important points to remember:

1. Shipowners have an obligation to provide a means by which
seafarers can send home regularly all or part of their wages to
their families.

2. Seafarer remittances are normally made through bank
transfer. However, MLC 2006 does not preclude other means
(e.g., international debit card).

3. It is up to seafarers to determine what proportion of their
wages shall be sent home to their families.

4. The money transferred should be paid directly to the
seafarers' designated allottee. That is to say, direct to the
allottee's bank account.

5. Any conversion of the money to local currency should be
based on the official published rate or prevailing market rate.

The exact wording of the pertinent MLC 2006 provisions is as
follows:

Regulation 2.2- Wages (Standard A2.2 - Wages)

3. Each Member shall require that shipowners take measures,
such as those set out in paragraph 4 of this Standard, to provide
seafarers with a means to transmit all or part of their earnings to
their families or dependants or legal beneficiaries.









4. Measures to ensure that seafarers are able to transmit their
earnings to their families include:

(a) a system for enabling seafarers, at the time of their entering
employment or during it, to allot, if they so desire, a proportion of
their wages for remittance at regular intervals to their families by
bank transfers or similar means; and

(b) a requirement that allotments should be remitted in due time
and directly to the person or persons nominated by the
seafarers.

5. Any charge for the service under paragraphs 3 and 4 of this
Standard shall be reasonable in amount, and the rate of
currency exchange, unless otherwise provided, shall, in
accordance with national laws or regulations, be at the prevailing
market rate or the official published rate and not unfavourable to
the seafarer.


Philippines: Rules on
Remittances of Filipino
Seafarers



Existing rules of the Philippine Overseas Employment
Administration (POEA) limit the remittance options provided to
seafarers under ILO Maritime Labour Convention, 2006, as
amended. Indeed, they appear to be out of sync with the letter
and spirit of the Convention as it applies to seafarer remittances.

Filipino seafarers are required to remit at least 80% of their
basic monthly wages as family allotments. There is no
alternative means prescribed for transmitting the money
other than through bank transfer. Lastly, family allotments are
supposed to be paid in Philippine currency.




The following is the exact wording of the pertinent provisions in
the POEA's Standard Terms and Conditions Governing the
Overseas Employment of Filipino Seafarers on Board Ocean¬
going Ships (commonly referred to as the "Standard
Employment Contract" or SEC for seafarers).

SECTION 8. ALLOMENTS AN REMITTANCES

A. The seafarer is required to make an allotment which shall be
payable once a month to his designated allottee in the
Philippines through any authorized Philippine ban. The
principal/employer/master/company shall provide the seafarer
with facilities to do so at no expense to the seafarer. The
allotment shall be at least eighty percent (80%) of the seafarer's
monthly basic salary.

B. The principal/employer/master/company may also provide
facilities for the seafarer to remit any amount earned in excess of
his allotment, including backwages, if any, to his designated
allottee in the Philippine through any authorzed Philippine bank
without any charge to him.

C. The allotments shall be paid to the designated allottee in
Philippine currency at the rate of exchange indicated in the credit
advice of the local authorized Philippine bank.



India's remittance rules for seafarers adhere strictly to ILO
Maritime Labour Convention, 2006. They are, in fact, an almost
verbatim copy of the MLC 2006 provisions on remittances.



Here is the exact wording of the pertinent section of India's
Merchant Shipping (Maritime Labour) Rules, 2016:

9. Wages

(3) The ship owner shall take measures to provide seafarers with
a means to transmit all or part of their earnings to their families
or dependents or legal beneficiaries.

(4) The ship owner shall formulate measures to ensure that
seafarers are able to transmit their earnings to their families
which include:

(a) a system for enabling seafarers,at the time of their entering
employment or during it, to allot, if they so desire, a proportion of
their wages for remittance at regular intervals to their families by
bank transfers or similar means;

(b) a requirement that allotments shall be remitted in due time
and directly to the person or persons nominated by the
seafarers;

(c) any charge for the service under sub-rule (3) and clauses (a)
and (b) of sub-rule (4) shall be reasonable in amount, and unless
otherwise provided the rate of currency exchange shall be at the
prevailing market rate or the official rate prescribed by the
Reserve Bank of India and not be unfavourable to the seafarer.



What seafarers can do if they are being short¬
changed in the conversion of their dollars or
their family allotments are unduly delayed

Here are some ways seafarers can protect their hard-earned
money from unscupulous manning agents:

1) Tell your family (i.e., your designated allottee) to keep all
pay slips as evidence in any complaint that may be filed in
future.

2) Complain to the top management of the manning agency
if the allotments are unduly delayed or if the money is not
converted to local currency based on the official published
rate or prevailing market rate.

3) If the manning agency stonewalls the complaint or query
from the family, communicate directly with the agency's
foreign principal and report the problem. There are decent
shipowners who will not tolerate malpractices by their
manning agencies.

4) In lodging a complaint with the shipowner, request that
the matter be treated as confidential. Also make sure that
you provide copies of pay slips to support your claim of
short-changing by the manning agency.

5) If possible, find a job through a manning agency that
handles seafarer remittances with honesty and integrity.


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