Wage garnishment
Wage garnishment means that a portion of your salary is withheld to pay off a debt. This can have an impact on you, whether you’re an employee or an employer. We’d be happy to explain what this means for you.
For Employers
Is your employee failing to pay his or her bills? If so, a portion of his or her wages may be garnished. This is called a wage garnishment. As an employer, you are legally required to cooperate with this process.
What is a wage garnishment?
In the case of a wage garnishment, a portion of the salary is used to pay off debts. As an employer, you no longer pay that portion to your employee, but to the bailiff. The employee receives the remaining amount (the exempt portion) directly.
Wage garnishment is only permitted if there is a legal basis for it, such as a court ruling (judgment) or a writ of execution.
What happens if wages are garnished?
If a wage garnishment is issued, you will receive an official document from the bailiff: the garnishment order. This document states that the employee’s wages are subject to garnishment. From that point on, the employer will withhold a portion of the wages.
To determine the exact amount, you will also receive a form: the third-party garnishment notice. In it, we ask, among other things:
- Does this employee work for you?
- How much does this employee earn?
- What deductions are already in place?
- Has a wage garnishment already been issued?
- What type of employment contract is it?
Please fill out these questions and return them within 2 weeks. In some cases, this deadline may be extended by 2 weeks if your employee requests it.
Non-contributory basis
We never garnish an employee’s entire salary. There is always a portion left over to cover living expenses and fixed costs. We call this the exempt portion. This is the amount the employee actually receives. Anything above that is used to pay off the debt.
The exemption threshold is at least 95% of the social assistance standard (including vacation pay). To calculate this accurately, we use the information we receive from the employer and the employee.
When does a wage garnishment end?
Wage garnishment ends when the debt is paid or when the employee leaves the company. Is the employee in question leaving the company? If so, please let us know as soon as possible. We will let you know when the wage garnishment ends.
Important: You cannot stop a wage garnishment on your own; this must always be handled by the bailiff.
Suspension
Sometimes wage garnishment is temporarily halted. We call this a suspension. The garnishment does not stop entirely, but is paused for a while. During that period, you do not need to transfer any amounts to us. You’ll pay your employee their full salary again. If there’s a suspension, we’ll always let you know. And we’ll also let you know when the wage garnishment resumes.
Multiple seizures
It is possible that your employee has multiple debts. In that case, there may also be multiple wage garnishments in place. The bailiff who initiated the first garnishment is the coordinating bailiff. This bailiff determines the exempt portion of the wages. You must remit the amount exceeding the exempt portion to this bailiff. Refer the other bailiffs to him or her. The coordinating bailiff then handles the distribution of the amounts.
Do you have any further questions about a wage garnishment? If so, please contact the bailiff’s office from which you received the documents. You can also find more information on the Tax and Customs Administration’s website. If the garnishment is being handled by Bosveld, you can also send us a message.
For Employees
How does a wage garnishment work for an employee?
If your wages are being garnished, a portion of your income is used to pay off a debt. Your employer withholds that portion and transfers it to the bailiff. We understand that this can have an impact. Debt can be stressful and raise questions. That’s why we’d like to explain it clearly.
You’ll always have money left over
A portion of your income is always set aside for you. This is called the exempt income threshold. It’s the amount you need to cover your fixed expenses and living costs. Anything you earn above that amount goes toward paying off your debt.
What does this mean in practice?
- Your employer withholds a portion of your salary
- You will receive the remaining amount yourself
- You don’t need to make any arrangements with your employer regarding this
It’s (usually) temporary
Wage garnishment stops as soon as the debt is paid. In some situations, we can work together to find a solution that better suits your circumstances.
