Supplemental allowances for Players can become confusing if this is your first season. Most Players have no idea how this benefit gets calculated or where it comes from.
Luckily, you are different.
The first take-away is this CBA benefit is automatic and provided daily. The second takeaway is this benefit doesn’t get paid unless the Player encounters actual expenses. In other words, get a receipt.
Allow me to explain.
MLB Supplemental Allowances: What does it Pay for?
Very simply, this monetary benefit pays for:
- First-Class hotel accommodations,
- A full daily meal, and
- Tip allowances.
For certain players, a Club grants a housing allowance. I will describe this further down below.
Sometimes, Players confuse travel expenses with their supplemental allowances. So you know, travel expenses is generally a separate line-item on a Player’s paycheck.
Supplemental Allowances: Which Players Get it?
In-Season supplemental allowances are available when a player meets any of the following five conditions:
- Player’s contract was assigned by a MiLB Club to a MLB Club,
- Player has no service time and is on the opening day roster,
- Service time is only after August 31 and the Player was on the opening day roster,
- A MLB player’s contract was assigned to another MLB Club during the season, or
- With 16 or fewer days before the start of the season, a MLB Player’s contract was assigned to another MLB Club.
Supplemental Allowances: Housing Allowances
One of the most intriguing elements of this daily benefit is the housing allowance. For players coming from the minors or with no service time and on the opening day roster, a Club is required to grant first-class hotel accommodations or a housing allowance equal to the value of the first-class hotel.
WARNING: For a Player to be eligible for this benefit, they are required to incur actual housing expenses. In other words, Players need receipts.
Supplemental Allowances: Off-Season
Here is when this benefit gets tricky: when a player is assigned from a Minor league club to a Major League Club, the Player is only entitled to benefits on the days they served on the active roster.
Because this and the various parts of this rule are somewhat complicated, every Club is required to submit a report to the Player’s Association on a monthly basis.
Thus, this monthly report should be used to affirm actual payments received.