Prior active duty Navy. Got my license and new to the commercial industry. Can someone please explain what an allotment is? We always had “Draws” for the pay period in the Navy. How does an allotment differ from a draw?
An allotment is a predetermined amount of your base pay which is sent where you want it to go. I’ve seen allotments as high as 80% of your base pay. OT pay doesn’t figure into it.
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The allotment is a pre defined constant amount you get paid on a set interval (usually bi monthly or monthly) then you get the remaining balance of what you’re owed when you pay off at the end of your trip.
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A draw is a cash payment to crew members, usually before a port call.
As has been said, an allotment is a payment, can be direct deposit or a mailed check. Almost all allotments are reoccurring but (with NS-5 at least) one-time payments can also be set up.
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In FOC multinational environment I have never heard of “draw” used for cash payments although it’s meaning is rather obvious. We used the term on board and in official comms with office " cash advance " .