Employees with outstanding debts may face payroll deductions. This process can only be enforced by a court or a government agency, typically the tax office or a social security authority. These organizations determine the amount to be withheld from the employee’s income each month until the debt is fully paid, directly affecting the employee’s take-home pay.
It is important to note that employers are required to comply with these withholding rules. If they fail to do so, they can be held liable for the debt as described in labor regulations and guidance. [Citation: Labor issues]
If you have a debt, how much can be deducted from payroll?
It is relevant to ask how much can be deducted from salary in the year 2023. The amount retained is always determined by specific rules aligned with wage protections. The Minimum Inter-Professional Salary (SMI) is €1,080 gross monthly for 14 payments or €1,260 gross monthly for 12 payments for this year. This threshold is kept separate from other allowances and protections.
When the salary equals the minimum wage, deductions are not permitted. If the salary exceeds the SMI, a proportional portion of income may be withheld, but the full salary cannot be seized.
Regarding the maximum deduction, Article 607 of the Code of Civil Procedure sets lien limits by applying a percentage of withholding based on the Interprofessional Minimum Wage and the salary, with variations by department. Based on the 2023 SMI, the following framework applies:
Percentage that can be withheld for a loan
If the salary equals the SMI: nothing can be withheld.
Salary from 1,080 to 2,160 euros: 30% can be withheld.
Salary from 2,160 to 3,240 euros: 50% can be withheld.
Salary from 3,240 to 4,320 euros: 60% can be withheld.
Salary from 4,320 to 5,400 euros: 75% can be withheld.
Salary over 5,400 euros: up to 90% can be withheld.
Difference between 12 and 14 payments
It is important to determine whether the debt is calculated over 12 payments or 14 payments (the regular 12 plus two extra payments). This distinction matters because the timing and method of payments can change how much is subject to lien and what remains non-embargoed:
If charged in 12 payments, the non-subject-to-lien amount, including proportional extra payments, is €1,260.
If 14 payments are charged, extra payments are set aside and the non-embargoed amount reduces to €1,080.
Extraordinary payments are not proportionate; when more than 14 payments are received, the specific situation must be considered. By year-end, no more than €15,120, equivalent to the annual SMI, can be seized.
This differentiation comes from amendments to wage lien provisions, which state that both the accumulation period and the calculation method must be considered, regardless of how extraordinary payments are allocated. The irrevocability of the resulting amount remains in effect in all cases. [Citation: Labor issues]