Deductions by bailiffs from allowances in 2017.

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In a situation where an employee receives a benefit from social insurance, e.g. sickness, care or maternity benefit, or receives a rehabilitation benefit, he will not avoid deductions from administrative enforcement bodies or bailiff bodies. Employers are obliged to take into account bailiff's deductions. In doing so, they are bound by strict rules. The provisions of the Code of Civil Procedure and the provisions of the Act on pensions and disability pensions from the Social Insurance Fund regulate the principle of deductions from benefits.

The most important rules are compliance with the maximum allowable deduction, which is the appropriate percentage of the gross amount (i.e. before deducting the monthly advance on personal income tax) and the amount free from deductions, which depends on the level of the lowest pension in a given calendar year.

The amount of the deductions

The contribution payer may deduct a maximum of:

  • 60% of the gross amount of the allowance for the recovery of maintenance enforced under enforcement orders and maintenance payments deducted at the request of the creditor on the basis of the enforcement order submitted by him, or

  • 25% of the gross allowance for the enforcement of non-maintenance payments (e.g. for the benefit of a bailiff).

However, bailiffs' deductions from allowances and rehabilitation benefits may not exceed:

  • 50% of the gross payment due in the recovery of maintenance payments enforced under enforcement orders and maintenance payments deducted at the request of the creditor on the basis of the maintenance order submitted by him;

  • 75% of the gross benefit - from July 1, 2017 to June 30, 2017, this is the amount of 50% - for the enforcement of non-maintenance benefits enforced under enforcement orders, including enforcement costs and fees;

  • 20% of gross benefits in the collection of receivables related to payments: for a stay in social welfare homes, for a stay in nursing and care institutions or for a stay in nursing and care institutions, and amounts of unduly received benefits (e.g. received pensions, disability pensions, family and nursing benefits) or benefits from the maintenance fund) together with interest for late payment;

  • 60% of the gross benefit in the enforcement of other receivables (e.g. for the benefit of a bailiff).

Convergence of deductions

In the event of multiple deductions, the execution may not exceed:

  • 60% of the gross benefit - if the deductions include maintenance payments,

  • 50% of the amount of the allowance - when the deduction is made, inter alia, amounts of unduly received benefits, fees for staying in a nursing and care institution,

  • 20% of the benefit - when only other receivables are collected.

Changes at the coincidence of executions from September 8, 2016.

Before 8 September 2016, the payer had to wait for the decisions of the enforcement authorities as to which of them should receive the deducted amounts. Until the decision on this matter was obtained, he kept them in a deposit. After this date, a change took place and in a situation where the receivables are to be deducted for the benefit of several creditors, and the total amount that can be seized is not sufficient to fully cover the enforced receivables, we deal with the coincidence of enforcement. In such circumstances, the payer of benefits is obliged to perform two actions jointly:

  • shall pay the seizure to the enforcement authority which first effected the seizure, and if that priority cannot be determined - to the authority that effected the seizure of the higher amount, and

  • shall immediately notify the competent enforcement authorities of the convergence of the enforcement, indicating the date of delivery of the notifications of the seizures made by these authorities and the amount of the amounts due against which the seizures were made.

The minimum payment and bailiff's deductions

As mentioned above, when making bailiff's deductions from allowances or rehabilitation benefits, it is not allowed to violate the free amounts. We currently have four percentage rates that determine the level of these amounts: 20, 50, 60 and from July 1, 2017 we have reached another rate of 75%. This change took place under the Act of 21 October 2016 amending the Act on pensions and disability pensions from the Social Insurance Fund (Journal of Laws of 2016, item 2036).

Pursuant to this act, from the beginning of July this year. social insurance benefits are free from execution and deductions in the part corresponding to 75% of the lowest old-age or disability pension; when deducting sums enforced under enforcement orders to cover debts other than maintenance payments, together with enforcement costs and fees.

From March 1, 2017, the amount of the lowest old-age pension, PLN 882.56, increased to PLN 1,000.

Incomplete month of illness

It is often the case that the rehabilitation benefit, sickness benefit, care or maternity benefit is only paid for part of the month. In such a situation, the contribution payer is obliged to calculate the amount free of deductions in proportion to the number of days for which the benefit is due.

When calculating the proportional amount of the allowance free of deductions, divide the allowance by 30 and multiply the result by the number of days for which you were entitled to sickness benefit.

Example 1.

An employed employee, whose receivables paid to him by his employer are subject to bailiff seizure due to unpaid loan, submitted to the employer a sick leave due to health problems for the period from May 1 to May 8, 2017. For this reason, he is entitled to a gross sickness benefit in the amount of 1400, 00 PLN. The employee will receive the entire benefit for the aforementioned disease on June 10, 2017. The employee has not submitted the PIT-2 form to the company (as a result, he is not entitled to the amount reducing the tax advance).

Step 1.

Determining the maximum amount of the deduction:

PLN 1400 x 25% = PLN 350.00

Step 2.

Proportionate calculation of the amount exempt from allowance deductions:

- PLN 500.00 (50% of the lowest pension applicable from March 1, 2017): 30 days x 8 days of illness = PLN 133.60

- the total amount free from deductions from the allowance = 133.60 PLN

Step 3.

Calculating the actual amount you can deduct from your Benefit:

- reduction of the allowance by tax: PLN 1,400 x 18% = PLN 252; 1400 - 252 = PLN 1148

- PLN 1400 - PLN 252 - PLN 350 = PLN 798

As the amount of the net benefit after deductions is higher than the proportionally determined amount free from deductions (PLN 798> 133.60), the employee may take the maximum 25% of the benefit from sickness benefit, i.e. PLN 350.00.

Example 2.

Suppose that the employee referred to above will be on care allowance from July 10 to July 15, 2017, the bailiff's deduction will be as follows:

Sickness benefit - PLN 278.00 gross - for days from 10 to 15 July.

Step 1.

Determining the maximum amount of the deduction:

278.00 x 25% = PLN 69.50

Step 2.

A proportional calculation of the amount exempt from allowance deductions

- July: PLN 750 (75% of the lowest pension applicable from March 1, 2017): 30 days x 6 days of illness in July = PLN 150

- total free amount: PLN 150.00

Step 3.

Calculating the actual amount you can deduct from your Benefit:

- reduction of the allowance by tax: PLN 278 (allowance for July) x 18% = PLN 50.00 (rounded up to the nearest PLN); PLN 278.00 - PLN 50.00 = PLN 228.00

- PLN 278 - PLN 50.00 - PLN 69.50 = PLN 158.50

As it results from the presented conversions, the amount of the net benefit after deductions is higher than the amount free of deductions (PLN 158.50> PLN 150.00). For this reason, the employee receives the care allowance for the period from July 10 to July 15 this year. you can deduct the amount of PLN 69.50.

If the employee receives both the allowance and sick pay during one month, the amount of the deduction must be calculated separately. Attachment to the enforcement authority from sickness pay should be carried out according to the same rules that apply to wages for work. When calculating such bailiff deductions, it is necessary to use, inter alia, the amount free from deductions reduced in proportion to the working time of the employee. No provision gives grounds for reducing the exempt amount applicable to receivables from the employment relationship in the event that the employee receives remuneration (including for health indisposition) only for a part of the month. This was confirmed by the Legal Department of the Chief Labor Inspectorate in a letter of 3 July 2008 (GPP-306-4560-457 / 08 / PE).