Understanding the Merchant Navy: Structure, Pay Scale, and Perks of the Global Commercial Shipping Industry

The merchant navy is the term for global commercial shipping industry which comprises of many types of vessels and private companies.

It is responsible for transportation of cargo from one place to another. For Ex. 1000 containers (40 foot) from India to Brazil. For carrying such a cargo through waterways, specialized vessels must be designed in such a manner that the cargo is transported safely. Therefore, considering all factors required for the safe navigation of ship from one place to another, a ship is built.

A Vessel is just a medium used for transportation and requires regular maintenance and watchkeeping. There comes the role of merchant navy officers and crew.

The merchant navy is different from state navy. The state navy is the armed wing of a state which has vessels to protect and guard the state whereas the merchant navy is a non-armed international body which has vessels to transport cargo.

It is a myth that the merchant navy guys live away from home for 6 months and at home for 6 months. The fact is that the salary in merchant navy is non-taxable in India if the seafarer is on the vessel for 182 or more days in a financial year. Therefore, to save taxes, most seafarers do a minimum of 6 months in a financial year. In higher officer ranks, even 3 months contracts are given. Moreover, the salary comes only when the seafarer is onboard and not on vacations. Nevertheless, making enough money to not work and earn for months is not a big deal if it’s the merchant navy.

There are different types of cargo which needs to be transported. Broadly classifying, there are dry cargo and liquid cargo. The salary difference and more hardship come with more delicate/hazardous cargo the vessel is carrying. Therefore, dry cargo ships have less hardship, low pay scale & more fun and liquid cargo ships have more hardship, high pay scale & less fun.

The salary is always credited in dollars and is as per the market demands and thus is varying. The monthly salary on dry cargo ship ranges from 3000 $ to 10,000 $ for officer ranks and 500$ to 2500$ for general purpose crew ranks whereas the monthly salary on liquid cargo ship ranges from 3000$ to 17,000$ for officer ranks and 500$ to 3000$ in general purpose crew ranks.

Departments in Merchant Navy 

The vessel’s main objective is to transport cargo from one place to another.

A ship requires personnels who can navigate the ship, keep the cargo safe & make sure that the water is not polluted. These personnels are called Navigating Officers.
Officer Ranks in Deck Department: Deck Cadet 🡪 3rd Officer 🡪 2nd Officer 🡪 Chief Officer 🡪 Master

A vessel also requires personnels who can make sure that the vessel’s engine, complex machineries, and power supply is in good condition for the voyage. These personnels are called Engine Officers.
Officer Rank in Engine Department: Engine Cadet 🡪 4th Engineer 🡪 3rd Engineer 🡪 2nd Engineer 🡪 Chief Engineer

Since, the work includes hectic schedules and large machineries, helping hands are a great boon to the officers and thus both the Deck and Engine departments have some General-Purpose Rating ranks who help the officers in daily chaos of the vessel.

Rating Ranks in Deck Department:

Trainee Ordinary Seamen 🡪 Ordinary Seamen 🡪 Able Bodied Seamen 🡪 Bosun
Rating Ranks in Engine Department: Trainee Wiper 🡪 Wiper 🡪 Motorman

Some additional ranks are also there serving different purposes and is hired as required in the vessel:

1. Electro-Technical Officer
2. Trainee Electro-Technical Officer
3. Deck Fitter
4. Engine Fitter
5. Pumpman

In addition to the operational and technical departments, there is also a galley department which ensures that the crew has their basic amenities like food, cleaning services, laundry services, etc.
Ranks in Galley Department: Trainee General Steward 🡪 General Steward 🡪 2nd Cook 🡪 Chief Cook

The above mentioned is basic structure of crew onboard.
Although, a vessel may have more technical/operational rank personnels onboard as required by the vessel and sea such as Armed Guards (for high risky area of piracy), Refrigerated Container Technicians (For maintenance of REEFERS), etc. 

FACT: On an average, there are only 22 crew onboard including all the ranks mentioned above. 

Pay Scale and Perks 

Merchant Navy is well known for the high pay scale and tax-free salary. There are various terms and condition for the same which must be fulfilled by the seafarer. One of the conditions for the income to be tax-free is completing a sea time for 182 days in one financial year.

The Salary scale depends on:

1. Type of Vessel
2. Experience in the Rank

The monthly pay scale as per rank are as follows:

1. Captain/ Chief Engineer: 10,000 $ – 17,000 $
2. Chief Officer/2nd Engineer: 6,000 $ – 10,000 $
3. 2nd Officer/3rd Engineer: 4,000 $ – 5,000 $
4. 3rd Officer/4th Engineer: 2,500 $ – 3,000 $
5. Tr. ETO and ETO: 3000 $ – 5500 $
6. D. CDT. / TME: 400 $ – 800 $
7. Bonus: 1,500 $ – 1,900 $ + OVERTIME
8. AB/Motorman: 1,200 $ – 1,600 $ + OVERTIME
9. OS/Wiper: 700 $ – 1,200 $ + OVERTIME
10. Tr. OS/Tr. Wiper: 200 $ to 450 $
11. 2nd Cook/Chief Cook: 1600 $ – 2500 $ + OVERTIME
12. Tr. GS/GS: 1,000 $ – 1500 $ + OVERTIME

  • It is a myth that merchant navy officers/crew must compulsorily live 6 months (182 days) away from home and then jobless for the other 6 months. The officer/crew stays onboard for a minimum 182 days for tax free income in one financial year. If they wish, then can work for more than 182 days and still get the income tax free but if they decide to quit sea without completing 182 days in a financial year, the income is taxable at the year end.
  • Note: The sea time of 182 days could be completed by doing 3-3 months contract. The Shipping company only gives short contracts to only senior officers and thus G.P. Rating ranks have no such choices.
  • Unlike Indian Navy, there is no canteen services for Merchant Navy Officers/Crew in India. However, all the basic ammonites to carry out life is provided for free at sea which include personal cabin & bathroom, electricity, fresh water, food, indoor and outdoor recreational activities, internet, work cloths, etc.
  • Moreover, for embarkation/disembarkation to or from the vessel, all the expenses which includes visa, travelling, hotel-stay, etc. are paid by the shipping company for all ranks.

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