In an effort to dispel misconceptions about the recently enacted Magna Carta of Filipino Seafarers, Philippine Senator Raffy Tulfo, chairperson of the Senate Committee on Migrant Workers, held a consultative dialogue with maritime stakeholders on April 23 to clarify key provisions of the law.
The meeting, attended by representatives of seafarers’ unions, manning agencies, seafarers’ spouses, and advocacy groups, focused on addressing widespread concerns over alleged salary reductions and financial obligations under the Magna Carta, formally known as Republic Act No. 12021.
Allotment rule clarified
Tulfo, one of the law’s principal authors and lead sponsor in the Senate, directly addressed misinformation circulating on social media that the new law would result in pay cuts for seafarers.
“There is no provision in the Magna Carta that says the salary of any seafarer will be reduced,” Tulfo said in Filipino during the dialogue.
He explained that confusion likely stems from Section 38 of the law, which introduces a mandatory 80 percent allotment rule. This provision requires seafarers to remit at least 80 percent of their monthly salary to a designated allottee in the Philippines.
The provision remains fair, according to Henry Zamora of the Associated Marine Officers’ and Seamen’s Union of the Philippines, as the Implementing Rules and Regulations (IRR) allow seafarers to designate more than one “allottee”.
Under this setup, 80 percent of a seafarer’s basic salary is allotted to their family, while 80 percent of the fixed overtime pay may be designated as a “self-allotment”, which serves as personal savings upon their return to the Philippines.
Previously, the allotment was based solely on a seafarer’s basic monthly salary. Under the law’s IRR, however, the Department of Migrant Workers (DMW) defined monthly salary to include fixed or guaranteed overtime pay.
“Nothing was taken away from the seafarer’s salary,” said Migrant Workers Secretary Hans Leo Cacdac during the meeting.
Kabayan Party-list’s representative Ron Salo, also a principal author of the Magna Carta in the House of Representatives, added further clarity. He said that all mandatory expenses of a seafarer will be removed first before computing the 80 percent.
“It will go directly to them in full. Their earnings are not taxed.”
Exchange rate concerns raised
Tulfo also brought up a recurring complaint from seafarers who claim they are losing money due to manipulated exchange rates used by some manning agencies when converting U.S. dollar earnings into Philippine pesos.
The senator emphasized that the correct exchange rate must be honored at the time of remittance.
Captain Antonio Ladera III, president of the Association of Licensed Manning Agencies, affirmed this, saying the law is clear: The applicable exchange rate should be based on the date the shipowner remits the salary. This rate should be reflected in either an electronic or physical pay slip issued by the manning agency.
Cacdac warned that such discrepancies constitute “unlawful deductions”, and any agency found engaging in these practices could face penalties. He said sanctions include license suspension ranging from six months to two years, or permanent cancellation for severe violations.
To address lingering confusion, Tulfo ordered all manning agencies to conduct an aggressive information and education campaign on the Magna Carta’s key provisions, in coordination with the DMW and the Overseas Workers Welfare Administration. The goal, he said, is to ensure Filipino seafarers fully understand their rights and responsibilities under the new law.
Senator Raffy Tulfo engaged stakeholders in a dialogue on April 23 to clarify misconceptions surrounding the Magna Carta of Filipino Seafarers.
Education provisions questioned
While lawmakers and government officials sought to correct public misconceptions, the Magna Carta of Filipino Seafarers is facing another challenge, this time from the education sector.
On April 10, the Philippine Association of Maritime Institutions (PAMI) filed a petition before the Supreme Court questioning the constitutionality of certain sections of the law that they argue overstep the state’s role in regulating maritime education.
PAMI’s petition challenges Sections 75, 76, and 78 of the Magna Carta, citing violations of academic freedom and the unconstitutional transfer of authority over maritime higher education institutions from the Commission on Higher Education to the Maritime Industry Authority (MARINA).
“(This) represents an overreach of state control that undermines the autonomy of maritime higher education institutions in areas such as curriculum, admissions, and governance,” PAMI said in a statement.
The association is also seeking to nullify Chapter XVIII of the law, arguing that its inclusion of maritime education exceeds the Magna Carta’s original purpose of protecting seafarers’ welfare.
Citing Article VI, Section 26 (1) of the 1987 Constitution, PAMI said the law improperly merges two unrelated subjects: seafarers’ rights and maritime education, which according to them, has caused confusion and delayed the establishment of clear implementing rules and regulations.
This, the association claims, violates the constitutional requirement “that every bill embrace only one subject, clearly expressed in its title”, according to the PAMI.
PAMI emphasized that its legal action is not an attempt to block seafarers’ rights. Rather, the association says it aims to preserve academic integrity while aligning with international maritime education standards.
“The law, as it stands, compromises both clarity and constitutional compliance,” the association stated. “PAMI urges maritime stakeholders to recognize that this effort is not about opposing the Magna Carta, but about ensuring it upholds the rule of law and truly serves the best interests of our nation, particularly our students,” it concluded.
When reached for comment by Maritime Fairtrade, MARINA’s administrator Sonia Malaluan declined to comment on the matter.
In an earlier interview on the sidelines of port inspection in Batangas, Malaluan acknowledged that one of the agency’s greatest hurdles in implementing the Magna Carta lies in taking over the regulation of maritime education.
“For us, it’s really education,” she said in mixed Filipino and English. “Because we will have sole jurisdiction over all maritime higher education institutions, and the challenge on our end is that we still don’t have the personnel. Once we do, we’ll need to build their capacity — and that’s highly technical,” she told Maritime Fairtrade.
Malaluan added that the process is more complex than hiring general staff.
“We can’t just hire anyone off the street; we need people who understand and have actual experience in navigation, those who have been on ships. That’s the real challenge.”
She earlier told reporters that MARINA is pushing for a reorganization to strengthen its institutional capacity. This includes increasing its workforce to 3,500, more than triple its current staffing of around 800, as well as establishing additional regional and satellite offices to improve service delivery and bring government closer to maritime stakeholders.
Malaluan said the reorganization is crucial to fulfilling MARINA’s regulatory and supervisory functions and other key programs outlined in the Maritime Industry Development Plan (MIDP). The MIDP, adopted through Executive Order No. 55, seeks to develop a “nationally integrated and globally competitive” maritime industry by 2028.
All photos credit: Senate of the Philippines
Top photo: Philippine Senator Raffy Tulfo
