Salary Garnishment Procedures and Limits in Philippine Law

This is a practical, Philippine-specific explainer. It summarizes the black-letter rules, the usual courtroom and payroll practice, and the major carve-outs. It’s not legal advice for a particular case.

1) What “garnishment” means (PH context)

Garnishment is a mode of execution of a money judgment. Instead of seizing the debtor’s property directly, the court orders a third person (the garnishee) who owes or holds money for the debtor—often the employer or a bank—to withhold and turn over part of that money to pay the judgment.

It’s done after a judgment (or an enforceable order for support) and through a writ of execution issued by a court (or by the NLRC in labor cases).
When aimed at wages or salaries, people call it wage or salary garnishment. The law treats these as “credits” owed by the employer to the employee.

2) Core legal sources (and what each contributes)

Civil Code, Art. 1708 — General rule: “The laborer’s wages shall not be subject to execution or attachment,” except for debts incurred for food, shelter, clothing, and medical attendance. → This is the single most important wage-protection rule.
Rules of Court (Rule on Execution of Judgments) — Provides the mechanics: writ of execution, levy on debts/credits, service on garnishees, and the garnishee’s obligations once notified.
Labor Code (wage protection & deductions) — Employers generally cannot deduct from wages unless: (i) allowed by law; (ii) authorized in writing by the employee for a lawful purpose with no employer profit; or (iii) allowed by a CBA/company policy consistent with law. → A court-ordered garnishment counts as “allowed by law.”
Family Code (Support) — Support covers everything indispensable for sustenance (including food, dwelling, clothing, medical attendance, education, and transportation). Courts routinely channel support through an employer by ordering withholding from salary.
Special statutes with express carve-outs
- RA 9262 (Anti-VAWC): Protection orders may direct the withholding of salary/income to satisfy support or other relief.
- SSS Act / GSIS Act / Pag-IBIG Fund law: Benefits from these systems are generally exempt from levy/attachment/garnishment, except for obligations to the systems themselves. (These are benefits, not wages.)
- Tax laws: The BIR may issue warrants of garnishment to collect taxes; in practice these target bank deposits, but they can reach “credits” owed to the taxpayer consistent with due process.
No execution against the State (settled doctrine): Government funds in the hands of public officers cannot be garnished or levied. Salaries of government employees are public funds until paid; courts do not garnish them at source in the usual way. After payment to the employee, the funds become private and ordinary rules apply. Support/VAWC orders are often honored by agencies via internal compliance rather than sheriff’s levy, but they still operate under the “no execution against the State” framework.

3) What can (and cannot) be garnished from wages

General rule

Wages are exempt from execution/attachment except for necessities (food, shelter, clothing, medical attendance). That means a typical commercial debt (credit card, personal loan, supplier’s claim) cannot be satisfied by garnishing wages as such.

Clear allowable scenarios

Court-ordered support (child/spousal/parental) — squarely within “necessities,” and also supported by Family Code and RA 9262.
Medical-necessity debts — fall within Art. 1708’s exception.
Debts for basic housing/shelter or food — likewise within the exception (courts will look at the nature of the debt).
Taxes — collected under specific revenue powers.

Common non-allowable scenarios (for wage garnishment)

Purely commercial or consumer debts (e.g., gadgets, travel, general loans) do not fall within the Article 1708 exceptions; creditors usually execute on non-wage assets (bank accounts, vehicles, real property, receivables) instead.

Gray areas and related pay items

13th-month pay & regular allowances: These are “wage” components. If the judgment is for support/necessities, courts may include them in the base for withholding; for ordinary debts, the wage exemption applies.
Bonuses: If truly discretionary, courts are less likely to treat them as “wages”; if regular and integrated into pay, they may be treated like wage items.
Commissions: If they form part of regular compensation, they’re often treated as wages for protection purposes.
Separation/retirement pay: Separation pay is typically protected as wage-like; government pensions/SSS/GSIS benefits are statutorily exempt from execution/attachment (with narrow exceptions).

4) The step-by-step procedure (when garnishment is legally available)

A) For the creditor (or support claimant)

Get an enforceable order
- Money judgment (final/executable), or
- Support order (including pendente lite or under RA 9262).
Apply for a writ of execution from the issuing tribunal (trial court, family court, or NLRC).
Identify the garnishee
- For wages: the employer (HR/payroll).
- For deposits/other credits: the bank or debtor of the judgment debtor.
Sheriff/levying officer serves the writ and notice of garnishment on the garnishee.
Garnishee’s answer/withholding
- The employer must disclose the nature/amount of the debt (salary) and start withholding in line with the order.
- For support, the order usually states a specific amount or percentage and whether the levy is continuing each pay period.
Turnover/remittance to the sheriff or as the order directs, until satisfied (or until further order).

B) For the employer (garnishee)

Once served, the employer becomes a “forced intervenor”:
- Freeze/withhold the ordered portion;
- Answer the garnishment (confirming pay details);
- Remit as directed.
Failure to comply can trigger contempt and even direct liability for the garnished amount.

C) For the employee (judgment debtor)

You can move to quash or limit the garnishment if it violates the wage-exemption rule or is oppressive.
You can request modification of support (increase or decrease) upon change in circumstances.

5) How much can be taken? (limits & computations)

No across-the-board “25% rule”

Unlike some jurisdictions, Philippine law has no universal percentage cap for salary garnishment. The controlling limits are:

The Article 1708 exemption (wages protected except for necessities); and
The court’s equitable discretion (especially in support cases).

Typical practice

Courts commonly set a fixed amount or a percentage of take-home pay (after mandatory deductions like withholding tax, SSS, PhilHealth, Pag-IBIG). This “disposable income” approach isn’t a statutory formula but a practical convention to avoid undue hardship.
If multiple support obligations exist, courts prioritize support and can re-allocate across dependents.

Interaction with other deductions

Mandatory deductions (tax, SSS, PhilHealth, Pag-IBIG) come first.
Voluntary deductions (e.g., cooperative loans, salary loans authorized by the employee) yield to a court order if there’s a conflict.
Employers should re-sequence deductions to honor the writ and notify the court if the employee’s net pay is insufficient.

Interest and arrears

Judgments accrue legal interest (jurisprudentially 6% per annum) on the amounts adjudged until full satisfaction. Courts/Sheriffs will incorporate accrued interest into the running balance that the continuing garnishment pays down.

6) Special handling: public-sector pay

No garnishment of government funds: Salary in the hands of a disbursing officer is public money; ordinary garnishment does not lie.
Compliance route: Agencies typically implement support/VAWC orders administratively (deduct and remit) without treating it as a sheriff’s levy on public funds. For ordinary debts, creditors must pursue non-wage assets or wait until income becomes private (e.g., after deposit to the employee’s account), subject to other exemptions (like bank secrecy rules on disclosure, not on execution per se).

7) Multiple garnishments & priority

First in time, first in right generally applies among similar claims served on the same garnishee.
Support typically outranks ordinary judgment collections because of public policy and the Article 1708 exception.
A garnishee facing competing writs should inform the court(s) and seek guidance to avoid double liability.

8) Duration and termination

A wage garnishment continues until:

The judgment (including interest and costs) is fully paid;
The court issues a recall/termination order; or
The employee separates from employment (in which case, the final pay is subject to the writ; a new employer will need to be served for continuing deductions).

9) Employer HR/Payroll checklist (Philippine practice)

Verify the writ/order (court/tribunal, case number, parties, exact directive).
Calendar effective date and compute on net pay (after mandatory deductions) unless the order states otherwise.
Re-sequence deductions: mandatory → court-ordered → voluntary.
Withhold and remit strictly as directed (cut-off dates, payee, reference case number).
Notify the employee (transparency) and acknowledge to the court/sheriff with payroll particulars.
Track the running balance (principal, interest, costs) so you can stop on full satisfaction.
Keep records (copies of writ, proof of service, answers, remittance slips).
For government agencies, route through your legal/accounting consistent with the no-execution-against-the-State rule.

10) Employee options & defenses

Invoke Art. 1708 — If the judgment isn’t for necessities (or taxes), move to lift the wage garnishment; creditor should execute on non-wage assets instead.
Seek modification — In support cases, petition to reduce/increase based on need and capacity.
Challenge over-reach — If the order effectively leaves insufficient means of subsistence, ask the court to cap/adjust the withholding.
Verify accounting — Check interest computations and credits for payments already made.

11) Banks vs. wages: don’t confuse them

Bank deposit garnishment (notice served on the bank) is different from wage garnishment (notice served on the employer). The wage exemption protects wages in the employer’s hands; once wages are paid and deposited, they are bank deposits—not wages—and are generally not protected by Art. 1708 (though other rules—e.g., bank secrecy on disclosure, not on execution—may affect procedure). Courts often honor legitimate claims by targeting deposits rather than invading wage protection.

12) Frequent misconceptions (and the correct view)

“Any judgment lets me garnish salary.” — False. Wages are protected except for necessities (and certain statutory claims).
“There’s a fixed 25% cap.” — False in PH. No universal statutory percentage. Courts set amounts case-by-case, with support a priority.
“Public employee pay is freely garnishable.” — False. No execution against government funds in the hands of officers; agencies implement support via administrative compliance.
“SSS/GSIS benefits can be garnished.” — Generally false. These are statutorily exempt, save narrow exceptions.

13) Practical examples

Child support order: Court directs Employer X to withhold ₱15,000 per month from A’s net pay and remit to B (child’s custodian). If take-home pay dips (e.g., unpaid leave), employer withholds up to the amount available after mandatory deductions and resumes full amount when pay normalizes, unless the order says otherwise.
Hospital bill judgment: Because it’s a medical-necessity debt, the court may allow monthly wage withholding (e.g., 10% of net pay) until the judgment (plus 6% p.a. interest) is fully paid.
Credit card judgment: Wages cannot be garnished under Art. 1708. Creditor executes on non-wage assets instead (bank deposits, receivables, property).

14) Penalties & risks for non-compliance

Garnishees (employers/banks) who ignore a valid writ can be held in contempt and even liable for the amount they should have withheld.
Employees/creditors who game the system (e.g., sham resignations or sham transfers) risk sanctions for fraudulent conveyances or indirect contempt.

15) Quick answers to “Can they garnish…?”

Basic salary? — Yes, but only for necessities/support/taxes and by court order.
13th-month pay? — Often yes in support/necessities cases; no for ordinary debts.
Discretionary bonuses? — Usually no (not wage), unless the order says otherwise.
Commissions? — If integral to pay, treated like wages for protection/withholding.
SSS/GSIS/Pag-IBIG benefits? — No (statutorily exempt, with narrow exceptions).
Government salary (pre-payment)? — Not via ordinary garnishment; agencies implement support through administrative compliance.

16) Takeaways

Wage protection is the rule; necessities/support/taxes are the main gateways.
No one-size-fits-all cap; amounts are court-set and must be reasonable.
Employers must comply precisely or face liability; sequence deductions correctly.
Public-sector pay follows the no-execution-against-the-State doctrine; implement via administrative routes.
SSS/GSIS/Pag-IBIG benefits are off-limits to ordinary levy.

If you want, tell me your role (employee, employer, creditor, or support claimant) and I’ll tailor an action checklist and sample wording for motions/answers that fit your situation.