Withholding notice

The withholding notice is a mandatory instruction to the payer of the debtor’s wages or salary as to how much of the income of the debtor must be remitted into enforcement. The notice indicates also the protected portion. If the wages or salaries are less than the protected portion, no withholding takes place.

The withholding notice contains instructions on how to calculate the withholding. Wages and salaries are treated the same way in enforcement as they are in taxation. Hence, the value of a perquisite is considered to be salary. The withholding is directed at the net wages or salary of the debtor.

Periodically paid wages or salary

In the garnishment of periodically paid wages or salary, a protected portion must be left for the debtor. The protected portion is EUR 22.41 per day for the debtor, and EUR 8.04 per day for each dependant.

The protected portion is indicated as a total sum in the prohibition of payment, and it is calculated for 30 days in a month (for wages or salary paid twice a month, for 15 days) regardless of how many days the debtor works in this period of time.

If a debtor's wages or salary is at most twice the amount of the protected portion calculated for him/her, two thirds of the amount in excess of the protected portion will be garnished from the wages or salary (income limit garnishment).

If the debtor’s wages or salary is higher than twice the amount of the protected portion, one third will be garnished from the wages or salary.

A fixed sum can also be ordered for garnishment in the prohibition of payment.

Other than periodically paid wages or salary

One third will be garnished from wages or salary other than periodically paid wages or salary. No protected portion will be taken into account.

The regularity of the pay period is decisive in assessing whether the pay in question is considered to be periodically paid wages or salary.

When the employer and pay period remain unchanged, the rule of garnishment for periodically paid wages or salary apply, regardless of how often the employee has worked during the period in question.

Validity of a withholding notice

The withholding notice is in effect indefinitely or for a set period. A later notice repeals an earlier one. Temporary interruptions of wages or salary payments should be notified to the assistant enforcement officer mentioned on the withholding notice.

Failure to comply with the withholding notice may result in the enforcement authority collecting the unremitted amount from the payer.

Remittance of withheld funds
Attachment of salary

 
Published 20.12.2018
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