Only These 3 Entities Can Garnish Your Salary: Here Are the Amounts and Rules

Understanding Wage Garnishment

Wage garnishment is a legal process wherein a creditor can request a portion of a debtor’s salary to be paid directly to them.
While any creditor can initiate this procedure, only three specific entities have the authority to execute it.
Garnishment serves as a powerful mechanism for debt recovery, as it allows creditors to seize part of a debtor’s income.
It is crucial to note that wage garnishment is a mandated process that can only be initiated by authorized parties.

Contrary to common belief, the Agency for Revenue Collection is not the sole entity able to arrange for wage garnishments; the debtor’s employer acts as the third party involved in this case.

Who Can Request Wage Garnishment?

When the Agency for Revenue Collection sends a debt notice, if the debt remains unpaid after 60 days, they can initiate compulsory debt recovery, which may include wage garnishment.
Thus, the Agency for Revenue Collection is the first entity eligible to request this process.

Additionally, other authorized debt recovery agents listed in the Register as per Article 53 of Legislative Decree 446 of 1997 can also initiate wage garnishment.
These agents possess defined powers, similar to the Agency for Revenue Collection, allowing them to execute procedures such as the garnishment of wages or pensions.
They must hold a license from the local authorities, permitting them to perform these debt recovery activities.

Furthermore, the judiciary can also impose wage garnishment.
Any creditor can petition the court president for authorization to garnish the debtor’s assets, which can include wages.
The court may issue an injunction ordering the debtor to pay; should they fail, wage garnishment can proceed, with notifications sent to the employer.

Limits and Regulations on Wage Garnishment

For those concerned about wage garnishment, it is essential to acknowledge that not the entire salary is subject to garnishment.
Clear rules dictate the process, ensuring that workers retain enough income to meet essential living expenses, often referred to as the minimum subsistence level.

The garnishable amount varies depending on whether the garnishment occurs before payment by the employer or after the salary has been deposited into the debtor’s bank account.
Typically, only one-fifth of the salary can be garnished, regardless of the total amount.
For instance, if an individual earns €1,500, the creditor can only seize €300 each month.
Even with lower salaries, like €750, €150 can still be garnished.

If wage garnishment occurs after deposit into a bank account, the rules alter; any amount exceeding three times the social allowance (set at €534.41 in 2024) can be seized.
This means that amounts above €1,603.23 in the account can be garnished.

Notably, if the garnishment is initiated by the Agency for Revenue Collection, different thresholds apply, with only a portion of the salary deemed garnishable based on specific salary brackets.
For example, if the income is less than €2,500, only one-tenth may be garnished.

Understanding the complexities and regulations surrounding wage garnishment is critical for both creditors and debtors to navigate these legal waters effectively.