Sending money home

For most seafarers, the primary financial purpose of going to sea is supporting a family at home. Getting the remittance structure right — how much to send, how to send it, and what it costs — has a direct impact on how much of each contract's wages actually reaches the people it is meant for. A poorly set-up allotment or a high-fee remittance corridor can erode 5–8% of a year's earnings. This guide covers the mechanics of allotments under MLC, the main transfer options, FX risk, and the OWWA system for Filipino crew.

Allotment authorisation under MLC A2.2(4)

MLC 2006 Standard A2.2(4) requires that shipping companies provide seafarers with a means to transmit all or part of their wages to a nominated recipient — at no excessive charge. The allotment authorisation form is completed on joining day. Key points:

• Specify the recipient's full name, bank name, account number, and SWIFT/BIC code clearly — errors cause delays or misdirected transfers.
• State the amount as a fixed USD figure or a percentage of net basic wage. Most seafarers choose a fixed amount so the recipient can budget reliably.
• Ask the accounts department for the remittance cut-off day and typical receipt date — this determines when your family can rely on funds clearing.
• MLC Standard A2.2(4) requires any fee or charge for the allotment service to be disclosed in writing before signing. Reject vague answers — "reasonable fee" is insufficient.
• Keep a copy of the signed authorisation form throughout the contract.

Typical allotment percentages among experienced seafarers run 50–70% of net wages. The remainder covers onboard expenses, port-call spending, and an onboard cash reserve. See money management at sea for a full breakdown of wage-slip components.

Transfer options compared

• Company allotment channel (SWIFT bank wire).The most common route — the company's crewing accounts department sends a batch SWIFT transfer monthly. Reliable and visible on the wage slip. Cost should be near zero to the seafarer under MLC, though the company may use an exchange rate with a margin. Request the rate schedule in writing.
• Wise (formerly TransferWise). Mid-market exchange rate with a transparent fee (typically 0.4–1.5% depending on corridor). Transfers arrive in 1–2 business days to most countries. Requires internet access and a registered account for both sender and recipient. Best for seafarers with smartphones and recipients with bank accounts. See salary wire transfer troubleshooting if a transfer is delayed.
• Western Union / Remitly / MoneyGram. Higher fees than Wise but support cash-pickup at agent locations — useful where the recipient has no bank account. Rates vary significantly by corridor. Always compare the all-in cost (fee plus exchange-rate margin) not just the headline fee.
• Direct SWIFT wire (personal). Useful for large, irregular transfers — for example, sending a lump sum for a property purchase. Bank fees of USD 25–45 per transfer plus a 2–4% exchange-rate margin make it expensive for small monthly amounts.

FX risk — USD wages vs home currency

Most international seafarer wages are denominated in USD. Exchange-rate movement between USD and the home currency directly affects the purchasing power of allotments. Practical approaches:

• Hold USD savings in a USD account where possible — convert only what the family needs each month, rather than converting the full allotment and then sitting on local currency.
• Avoid converting cash at port money-changers — the spread is typically 3–6% worse than an electronic transfer at the same time.
• During periods of USD strength, consider increasing the allotment slightly to build a local-currency buffer for when the USD weakens.
• Review the family budget in USD terms annually — if USD has depreciated significantly, the nominal allotment may need to increase to maintain the same purchasing power.

If wages are unpaid or allotments are not remitted on time, see unpaid wages — what to do.

OWWA — the Filipino seafarer welfare system

The Overseas Workers Welfare Administration (OWWA) is a Philippine government agency providing welfare services funded by a USD 25 membership fee charged per contract deployment. The fee is typically collected by the manning agency before departure. OWWA membership provides:

• Death and disability benefit — up to PHP 200,000 for work-related death or total disability.
• Education and livelihood assistance — scholarship programme for dependants; livelihood loans and skills training for returning seafarers.
• Repatriation assistance — emergency repatriation funding if stranded abroad.
• Welfare assistance — access to OWWA welfare desks at major Filipino overseas posts.
• SSS, Pag-IBIG, PhilHealth — separate mandatory contributions; confirm the manning agency is remitting these monthly, as non-remittance is a common source of disputes.

Confirm OWWA membership is active before departure — the agency's online portal (owwa.gov.ph) allows verification by OFW ID number. Lapsed membership means benefits are not payable.

Family budget planning

A fixed monthly allotment only works well if the receiving family has a budget. Common problems when planning is absent: the allotment is spent in the first two weeks, leaving the family short; large irregular expenses (school fees, medical bills) are not anticipated; and savings that were promised never materialise. A simple structure that many seafarer families use:

• Divide the allotment into fixed buckets: household expenses (rent, utilities, food), school fees, loan repayments, and savings — agreed before the contract starts.
• Open a dedicated savings account separate from the current account — the allotment arrives into current, the savings transfer is automatic on receipt date.
• Share a simple monthly summary with the seafarer via messaging — two lines: received [amount], balance [amount]. Keeps both parties informed without requiring long calls.
• Review the budget plan at sign-off, not mid-contract — major financial decisions are better made when the seafarer is home.

Frequently asked questions

• What percentage of wages should I send home as allotment?

  Most experienced seafarers send 50–70% of net wages as a fixed monthly allotment, keeping the remainder as onboard spending money for port calls and personal expenses. The right figure depends on your family's monthly needs in local currency, your current debts, and how close you are to major financial goals. Starting at 60% and adjusting after the first two months is a common approach. MLC Standard A2.2(4) does not set a required minimum or maximum — the amount is agreed between you and the company in the allotment authorisation.

• Can I change my allotment amount mid-contract?

  Yes. Submit a written request to the master or ship's accounts department specifying the new amount and the month from which it should apply. Keep a copy. Most companies process changes within one pay cycle. MLC Standard A2.2(4) requires that the allotment mechanism be made available to seafarers — the company cannot refuse a reasonable request to adjust it.

• Is Wise available in all remittance corridors?

  Wise covers around 80 receiving countries and is strong on major corridors such as USD→PHP, USD→INR, USD→NGN, and USD→IDR. It requires both sender and recipient to have bank accounts — it does not support cash pickup. For families without a bank account, Western Union, Remitly, and MoneyGram offer cash-collection options at agent locations. Compare fees for your specific corridor before committing, as rates vary significantly.

• What does OWWA provide for Filipino seafarers?

  The Overseas Workers Welfare Administration (OWWA) provides welfare benefits funded by a mandatory USD 25 membership fee per contract deployment. Benefits include a death and disability benefit (up to PHP 200,000), an education scholarship for dependants, repatriation assistance, and access to livelihood programmes. OWWA membership is renewed per contract — confirm with the manning agency that the fee has been paid before departure. Benefits are not paid if the membership has lapsed.

Primary sources

• · ILO — MLC 2006 Standard A2.2(4) (allotment obligation)
• · OWWA — Overseas Workers Welfare Administration (Philippines)
• · ITF — seafarer pay and allotment rights
• · Wise — international transfer fee comparison tool

See also

• · Money management at sea — full financial guide
• · Unpaid wages — what to do
• · Salary wire transfer troubleshooting
• · Joining-day checklist — allotment form
• · Filipino seafarer guide — OWWA, SSS, PhilHealth
• · Seafarer Employment Agreement — wage terms
• · Pension contributions — guide by nationality

Disclaimer. General practical information only — not financial or legal advice. Transfer fees, exchange rates, and OWWA benefit amounts change periodically. Verify current figures directly with your bank, transfer provider, or OWWA. For wage disputes or allotment failures, contact your union or welfare helpline.