The floor: the ILO minimum wage
Seafarer pay is one of the most searched and least clearly explained subjects in shipping. The confusion comes from the fact that there is no single number — there is a floor set internationally, a set of collectively bargained scales above it, and a market that in 2026 is paying well above both for certain ranks.
The ILO's Joint Maritime Commission subcommittee on wages sets a minimum monthly basic wage for an able seafarer. The settlement agreed in Geneva in April 2025 sets:
| Effective from | Minimum basic wage, able seafarer |
|---|---|
| 1 January 2025 | USD 673 |
| 1 January 2026 | USD 690 |
| 1 January 2027 | USD 704 |
| 1 January 2028 | USD 715 |
That is an increase of more than 6% across the settlement. Two things to understand about it:
- It is a basic wage for one rank. It is not total earnings, and it does not apply to officers.
- It is a floor, not a market rate. Most seafarers on well-run tonnage earn considerably more.
What a seafarer's pay is actually made of
| Component | Typical basis |
|---|---|
| Basic wage | Monthly, by rank |
| Guaranteed overtime | Fixed monthly hours beyond the basic working week |
| Additional overtime | Hourly, beyond the guarantee |
| Leave pay | Accrued days per month of service |
| Subsistence / victualling allowance | Where applicable |
| Seniority / company service increments | Retention mechanism |
| Special allowances | Tanker, gas, war risk area, ice class |
| Bonuses | Completion, safety, performance |
Total monthly earnings for the same rank can therefore differ substantially between two ships that quote the same basic wage. When comparing offers — as a seafarer or as an owner benchmarking — compare total monthly cost of employment, not basic.
ITF and collective agreements
The International Transport Workers' Federation negotiates collective bargaining agreements that set wage scales above the ILO minimum. Vessels covered by an ITF-approved agreement carry a Blue Certificate, and the applicable scale depends on which agreement applies.
For owners the practical points are: know which agreement your vessel is covered by, know what it obliges you to pay for each rank, and understand that ITF inspectors may check compliance in port. Back-pay claims and vessel delay are the enforcement mechanism.
What is driving wages in 2026
Scarcity at officer level. A global shortfall of 39,100 certificated officers, with 113,735 more needed by 2030, means senior ranks are priced by competition rather than by scale.
Segment premiums. Gas, chemical and offshore command premiums for competency that takes years to build.
Concentration of supply. The top five supply countries account for 56.25% of the workforce; local wage expectations in those countries feed directly into global cost.
Crew as 40–48% of OPEX. Every wage movement flows straight into vessel operating cost, and there is no offsetting productivity lever of any size.
The part owners underestimate: how the money arrives
A wage is only as good as its delivery. Seafarers send most of their earnings home through allotments, and the friction in that path is real: multiple currencies, correspondent banking chains, fees deducted at several points, delays around weekends and holidays, and payslips that do not explain deductions.
| Failure | Consequence |
|---|---|
| Late payment | Immediate trust damage; fastest driver of attrition |
| Fees eroding allotments | Effective pay cut invisible to the owner |
| Opaque deductions | Disputes, grievances, ITF involvement |
| Wrong currency conversion | Perceived underpayment |
| No payslip access | Seafarer cannot verify anything |
Owners spend months negotiating a wage scale and then lose the retention benefit to a payment process nobody owns. Fixing payment reliability is one of the cheapest retention interventions available.
Wage benchmarking for owners
- Compare total cost of employment per rank, not basic wage
- Include travel, victualling, training and medical in the comparison
- Track wage cost per available day, not per month
- Benchmark against the same nationality mix — cross-nationality comparisons mislead
- Watch the ladder effect: minimum wage movements reset expectations several ranks up
minimum wage figures from the ILO Subcommittee on Wages of Seafarers settlement agreed April 2025 for 2026–2028; workforce data from BIMCO/ICS 2026. This is general information, not employment or tax advice. Reviewed by the Zeaclub Editorial Team, 24 August 2026.
Frequently asked questions
What is the minimum wage for a seafarer in 2026?
USD 690 per month basic for an able seafarer under the ILO settlement, rising to USD 704 in 2027 and USD 715 in 2028. Officers and other ranks are paid on scales above this.
Do all ships pay ITF rates?
No. ITF scales apply where a vessel is covered by an ITF-approved collective bargaining agreement. Other vessels pay according to national or company scales, subject to the ILO minimum and flag state requirements.
Are seafarer wages taxed?
It depends on the seafarer's country of residence and its rules on foreign employment income. Several supply countries offer relief for time served abroad. Seafarers should take advice specific to their residence.
Why do wages vary so much for the same rank?
Vessel type, trading area, nationality, collective agreement coverage, company service and the current tightness of the market for that particular certificate.