The European Commission has approved an update of German regulations on lowering non-wage costs for seafarers (Senkung der Lohnnebenkosten in der Seeschifffahrt). This applies to seafarers working in the German social security system on vessels registered in the European Community (EU/EEA).

Significantly, the update covers seafarers working on Madeira-registered merchant vessels.

That means: Shipping companies employing seafarers on eligible ships can request a reduction in German social security contributions for their seafarers, matching the employer’s contribution.

These changes increase the number of shipping companies qualified to receive state aid: funding is now open for seafarers working on board merchant vessels registered in any European Union country. Prior to the latest move, financial aid was available only to vessels operating in German shipping registers.

The decision underscores the continuing European Commission action on state aid and confirms the consistent and favourable interpretation of European Community guidelines on State aid to maritime
transport.

It follows the decision earlier this year regarding German wage tax deduction.

Marex Media