Article 174 of the Saudi Labor Law
المادة 174 من نظام العمل · الباب الحادي عشر: عقد العمل البحري
All of a seaman's entitlements are paid in the official currency, and may be paid in foreign currency if they fall due while the ship is outside territorial waters and he agrees; he may ask for his cash wages to be paid to someone he names.
Official text (Arabic)
This article has not been amended since the law was issued.
تدفع جميع استحقاقات البحار بالعملة الرسمية ، ويجوز أداؤها بالعملة الأجنبية إذا استحقت والسفينة خارج المياه الإقليمية وقبل البحار ذلك.
وللبحار أن يطلب من صاحب العمل صرف ما يستحقه من أجره النقدي لمن يعينه.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 174 explained in plain English
Article 174 of the Labor Law regulates how a seaman's entitlements are paid, that is, the worker bound by a maritime work contract on board a ship. It sets a general rule and one exception, then gives the seaman an additional right to direct his pay to whomever he chooses.
The general rule: all of the seaman's entitlements are paid in the official currency of the Kingdom. The text uses the phrase "all of the seaman's entitlements," so it is not limited to basic pay but covers everything he is owed under his contract and the Law.
The exception: entitlements may be paid in a foreign currency, but on two conditions that must both be met:
- The amount must fall due while the ship is outside the territorial waters of the Kingdom.
- The seaman himself must accept payment in the foreign currency.
If the ship is within territorial waters, or the seaman refuses to receive his pay in a foreign currency, payment must be in the official currency; the employer cannot impose a foreign currency unilaterally.
The right to direct pay: the seaman may ask the employer to pay what he is owed of his cash wages to a person he names, such as a member of his family in the Kingdom. This right is established in the seaman's interest, he is the one who decides the beneficiary, and the text in this paragraph is limited to cash wages.
This article is within Part Eleven on the maritime work contract. Article 173 sets the conditions for who works as a seaman (completing 18 years, obtaining a certificate that allows work in maritime service, and medical fitness), and Article 175 protects the seaman's pay from reduction if the voyage is shortened for any reason, for the duration of a single sea voyage. The three articles thus complement one another in protecting the seaman in terms of his working conditions, his entitlement to his pay, and the way it is paid.
If a dispute arises over the currency in which pay was made, or over carrying out the seaman's request to have his pay paid to someone he named, it is advisable to consult a lawyer specialized in labor cases.
Practical example
Ahmed is a seaman working on a cargo ship belonging to a company in Dammam. His monthly pay fell due while the ship was anchored at a foreign port outside the Kingdom's territorial waters, so the master offered to pay him in that country's currency so he could spend there. Because the entitlement fell due outside territorial waters and Ahmed accepted, payment in the foreign currency is valid under Article 174. Had Ahmed refused, the company would have had to pay his wages in the official currency. The following month, Ahmed asked the company to pay his cash wages to his mother in the Kingdom instead of to him, which the Law expressly entitles him to, since a seaman may name the person to whom his cash wages are paid.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Active contributorFrequently asked questions about Article 174 of the Saudi Labor Law
Can a seaman's pay be paid in a foreign currency?
Yes, but on two conditions together: the entitlement must fall due while the ship is outside territorial waters, and the seaman must accept. Otherwise payment must be in the official currency.
Can a seaman ask for his salary to be paid to his family?
Yes. Article 174 provides that the seaman may ask the employer to pay what he is owed of his cash wages to a person he names, such as a member of his family.
What if the seaman refuses to receive his pay in a foreign currency outside territorial waters?
The seaman's acceptance is a condition for the validity of payment in a foreign currency, so if he refuses the employer must pay in the official currency.
Does the article cover all entitlements or only wages?
The general rule in the article applies to all of the seaman's entitlements, not wages alone, while the right to name the person to whom the amount is paid appears in the text with respect to cash wages.
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The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.