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RA 12021: New Rules for Seafarers' Allotment and Remittances of Wages
The Magna Carta of Filipino Seafarers (Republic Act No. 12021) was signed into law by the President of the Philippines on 23 September 2024. While the Implementing Rules and Regulations (IRR) are being finalized, it's crucial for stakeholders to understand the full scope of this Act and its potential impact on operations.
One notable provision is Section 38, which mandates the remittance of 80% of the seafarer's monthly salary to their designated allottee in the Philippines through an authorized Philippine bank. This remittance must be made once a month, at no expense to the seafarer.
Key Changes & Considerations:
Definition of Monthly Salary:
While awaiting the official IRR (expected mid-December and implemented by January), preliminary interpretations suggest that "monthly salary" under this Act encompasses basic pay plus guaranteed overtime. This differs significantly from the previous requirement of 80% of basic pay only.
Remittance Timing:
The Magna Carta removes the previous provision allowing for wage payments by the 15th of the succeeding month. This means adjustments to cash flow management may be necessary for companies accustomed to the previous timeline.
Implementation:
Companies should proactively plan for these changes, particularly the increased allotment amount and revised remittance schedule, to ensure compliance by January 2025 when the law is expected to take effect. This may involve adjusting payroll computations and/or customizing crewing systems.
By understanding and preparing for these key changes, stakeholders can ensure a smooth transition and uphold the rights and welfare of Filipino seafarers as outlined in the Magna Carta.
Link to copy of Magna Carta of Filipino Seafarers (Republic Act No. 12021): https://lnkd.in/gqavDNWh
#MagnaCarta #FilipinoSeafarers #MaritimeIndustry #Allotment #Changes #Shipping #Seafarers
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