Seafarer Leave Entitlements 2026: MLC 2006 Rules and How Leave Pay Works

Leave entitlement is one of the contract terms most seafarers skim past when signing, assuming “it’s standard anyway.” It isn’t entirely standard — the regulatory minimum and what companies actually offer can differ meaningfully, and the calculation method behind your leave pay affects your real take-home more than most people realize.

The MLC 2006 Minimum

The Maritime Labour Convention 2006 — which India has ratified — sets a floor of 2.5 calendar days of paid annual leave per month of service. That works out to 30 days per year at minimum.

This is genuinely a floor, not a norm. In practice, most Indian seafarer contracts, particularly at officer level, specify considerably more — commonly 8-15 days per month worked, reflecting the demanding nature of continuous sea service rather than the bare regulatory minimum.

How Leave Accrues

Leave typically accrues based on actual sea service — the days you’re actually onboard and working count toward your leave balance, calculated per the rate specified in your contract (whether that’s the MLC floor or a higher contractual rate).

Understanding Leave Pay Calculation

This is where the real financial detail lives, and it’s genuinely worth checking before you sign, not assuming.

The core question: is leave pay calculated on basic wage alone, or on a broader set of salary components?

A typical officer salary package breaks down roughly as:

Component	Approximate Share of Total
Basic wage	50-60%
Guaranteed overtime	15-20%
Leave pay accrual	10-15%
Fixed allowances	remainder

If your leave pay is calculated only on the basic wage component, your actual leave earnings can be meaningfully lower than if it’s calculated on a broader package including guaranteed overtime. Neither approach is universally standard — this genuinely varies by company, and you should confirm the specific calculation method in your contract before signing, not discover it when your leave settlement doesn’t match what you expected.

What to Check in Your Contract

Before signing any Seafarer Employment Agreement (SEA), verify:

• The stated leave rate (days per month) — is it the MLC minimum, or higher?
• The calculation base for leave pay — basic only, or a broader component set?
• Carry-forward rules — can unused leave roll over to a future contract, or must it be encashed at sign-off?
• Encashment terms — if leave is encashed rather than taken, what rate applies?

None of this is standardized across the industry — it genuinely differs by company, and the contract is the only reliable source. Verbal assurances about “standard leave terms” aren’t a substitute for reading the actual clause.

What Happens to Unused Leave

This depends entirely on your specific contract and company policy:

• Some companies allow leave balance to carry forward into a subsequent contract
• Others require full encashment (payment in lieu) at the end of each contract, with no carry-forward
• A few offer a choice between the two

There’s no MLC-mandated default here — check your SEA directly rather than assuming based on what a previous company did.

Leave Pay Timing

Leave pay owed at contract completion should be settled as part of your final wage settlement at sign-off, alongside any other outstanding dues. If this doesn’t happen promptly, it’s treated the same as any other wage dispute — document it, raise it with the company/manning agent first, and escalate to DG Shipping or ITF if unresolved.

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Unsure how your specific contract calculates leave, or want help reading a clause before you sign? Chat with SailorGPT for guidance on seafarer contract terms.