How Seafarer Overtime Pay Is Calculated: Fixed OT vs Actual Hours

Quick answer: Seafarer overtime is calculated against a standard baseline of 8 working hours per day (208 hours per month under common international agreements), with most contracts building in a fixed or guaranteed monthly overtime allowance — commonly cited around 85–103 hours depending on rank and the applicable collective agreement — paid as part of your regular monthly wage regardless of actual hours worked. Hours worked beyond that fixed allowance are typically paid at an additional hourly overtime rate, calculated from your basic wage, and recorded through onboard hours-of-work and rest records required under STCW and MLC 2006.

“Overtime included” is one of the most confusing phrases in a merchant navy salary offer. Some seafarers assume it means unlimited unpaid extra work; others assume it’s a marketing term with no real substance. Neither is accurate. Here’s how overtime actually works.

The Standard Hours Baseline

Merchant navy work schedules are built around a standard working day — commonly 8 hours — against which any additional hours worked are measured as overtime. This is the same basic structure as most shore-based jobs, but the nature of shipboard work (watchkeeping, cargo operations, drills, maintenance) means hours regularly exceed the standard day, especially in port or during operations.

Fixed / Guaranteed Overtime: What “Included” Actually Means

Because overtime beyond the standard day is so routine at sea, most employment contracts don’t calculate it hour-by-hour from zero every month. Instead, they build in a fixed or guaranteed overtime allowance — a set number of hours (commonly cited in the range of 85–103 hours per month, varying by rank and the specific collective bargaining agreement your company follows) that is paid every month as part of your standard salary, whether you worked exactly that many overtime hours, fewer, or more.

This is what “overtime included” in a salary figure typically refers to: not that your total number is inflated for no reason, but that a realistic average monthly overtime allowance is already factored into the headline salary you’re quoted.

What Happens Beyond the Fixed Allowance

If your actual overtime hours in a given month genuinely exceed the fixed allowance built into your contract, the excess is typically payable separately, calculated as an additional hourly rate derived from your basic wage. The exact hourly rate and calculation method vary by company and the collective agreement in force, so this is worth confirming specifically in your own employment contract rather than assuming a universal figure.

How Overtime Hours Are Actually Recorded

Every seafarer, at every rank, is required under STCW and MLC 2006 to maintain hours-of-work and hours-of-rest records — not primarily for pay purposes, but as a safety requirement to prevent fatigue. In practice, these records also form the basis for any overtime calculation or dispute:

• Hours are logged daily, typically in a standardized format covering work and rest periods across each 24-hour cycle
• The ship’s master or designated officer reviews and countersigns these records
• MLC 2006 sets minimum rest requirements (a floor on rest hours, which functions as an effective ceiling on work hours) that these records are meant to demonstrate compliance with

A Practical Approach for Seafarers

• Keep your own daily record, separate from the official log, especially during busy port stays or operational periods where actual hours may run well beyond the fixed allowance
• Understand your specific contract’s fixed overtime hours and hourly excess rate before joining — this detail is in your Seafarer Employment Agreement, and it’s worth asking your company or manning agent to clarify if it isn’t obvious
• Check your payslip against your own record every month rather than only at contract end, so any discrepancy is caught and raised while it’s still fresh and easy to resolve
• Escalate promptly if there’s a genuine, unresolved mismatch — first with your ship’s master or company payroll, then through your manning agent, and if necessary as a formal wage claim (see our guide to recovering unpaid seafarer wages)

Why This Matters for Comparing Offers

When comparing salary offers between companies, “overtime included” figures aren’t directly comparable unless you know the fixed hours each one assumes. A higher headline number built on a larger fixed-overtime allowance isn’t necessarily a better real offer than a lower number with a smaller fixed allowance and a strong excess-hour rate — the honest comparison requires looking at the actual structure, not just the total figure.

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