FIFO Offshore Pay and Tax UK 2026
UK FIFO offshore workers are paid a day rate for every day of the rotation, from about £180 a day entry level to £1,200 a day for an OIM. On a 2 on 2 off rota that is roughly 182 paid days a year. UK residents pay full income tax and National Insurance.
Turning a day rate into an annual figure
Offshore pay is quoted per day, not per year, so the number in a job advert can look larger or smaller than it really is. On a 2 on 2 off rota you work around 182 days. Multiply your day rate by 182 and you have a realistic annual figure, assuming you fill every rotation with no unpaid gaps.
| Level | Day rate | Approx. per year | Typical roles |
|---|---|---|---|
| Entry | £180 to £220 | £33,000 to £42,000 | Roustabout, steward |
| Semi skilled | £240 to £320 | £44,000 to £58,000 | Roughneck, rigger |
| Skilled trade | £380 to £560 | £70,000 to £100,000 | Mech, elec, instrument tech |
| Supervisory | £720 to £950 | £130,000 to £170,000 | Driller, toolpusher |
| Senior | £750 to £1,200 | £135,000 to £220,000 | OIM, rig superintendent |
Why offshore money goes further
While you are on rotation the employer feeds you, houses you and flies you. Your outgoings for two weeks are close to zero. That is the real reason offshore pay feels bigger than the same salary onshore, and it is why many hands clear debt or a mortgage far faster than their onshore equivalents.
PAYE versus limited company
- PAYE through an agency or operator: tax and National Insurance deducted at source, holiday pay and sick provision included, simplest option and what most staff positions use.
- Umbrella company: common on contractor bookings. You are still taxed as an employee but the umbrella deducts its margin and employer costs from the assignment rate, so compare the assignment rate to a PAYE rate carefully.
- Own limited company: more control over expenses and timing, but IR35 status has to be assessed per contract and most operator engagements now fall inside IR35, which removes much of the advantage.
Tax rules that catch offshore workers out
If you are UK resident you pay UK income tax and National Insurance on offshore earnings, whether you are PAYE or contracting. Work on the UK Continental Shelf is treated as UK work even though the installation is at sea.
Seafarers Earnings Deduction is the one people ask about most. It applies to genuine seafaring on ships, not to fixed platforms or jack-ups, so the majority of North Sea platform workers cannot claim it. Some vessel based roles on SOVs and DSVs can qualify, but only if the eligibility period and voyage tests are met, and it is worth paying an accountant who knows the rules rather than guessing.
Keep every receipt for tickets, medicals, travel to the heliport and PPE. Where they are not reimbursed, many are allowable, and over a year they add up to a meaningful deduction.
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More on FIFO offshore work
Back to the FIFO offshore jobs hub or compare offshore day rates by role.
FIFO pay and tax: common questions
How much do FIFO offshore workers earn in the UK?
Between roughly £180 and £1,200 a day in 2026. Entry level deck crew and stewards earn £180 to £220, skilled technicians £380 to £560, and drillers, toolpushers and OIMs £720 to £1,200. Travel, food and accommodation are paid on top of the day rate.
Do offshore workers pay tax in the UK?
Yes. UK resident offshore workers pay full income tax and National Insurance on earnings from the UK Continental Shelf, whether they are employed through PAYE or contracting through an umbrella or limited company.
Can offshore workers claim Seafarers Earnings Deduction?
Only in limited cases. Fixed platforms and jack-ups are not ships for the purposes of the deduction, so platform workers cannot claim. Some vessel based roles on SOVs, DSVs and similar can qualify if the eligibility period and voyage conditions are met.
Is offshore work better paid through PAYE or a limited company?
For most people PAYE is now simpler and comparable, because the majority of operator engagements fall inside IR35. A limited company only makes sense where contracts are genuinely outside IR35 and you have an accountant confirming the status per assignment.