Coincidence of alimony and non-alimony enforcement - what to do?

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An employee may have their wages seized for maintenance and non-maintenance enforcement. The employer may also make a voluntary deduction. How are all these deductions different from each other? Which deduction takes precedence when the maintenance and non-maintenance enforcement coincide? You can read about all the rules of deductions in the article.

Deductions from wages

If we are dealing with enforcement of remuneration, the bailiff sends a letter to the employer in which he calls on him to transfer part of the debtor's remuneration to the bailiff or the creditor (Article 881 § 3 of the Civil Code). Why parts? Because there is an amount free of deductions and limits on deductions, you will read about it later in the article.

In the event of an overlap of enforcement from different creditors, the employer is required to notify the enforcement authorities of this overlap.

The following deductions can be made from remuneration for work:

  • forced:

    • maintenance deductions enforced under enforcement orders,

    • non-maintenance deductions enforced under writs of enforcement,

    • cash advances paid to the employee,

    • financial penalties (Article 108 of the Labor Code),

  • voluntary.

Attention!

Among the deductions from remuneration, we can distinguish compulsory and voluntary deductions.

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Financial penalties may be imposed on an employee due to:

  • non-compliance with health and safety regulations or fire regulations,

  • leaving work without justification,

  • appearing for work while drunk,

  • drinking alcohol at work (Article 108 § 2 of the Labor Code).

A fine for one transgression or 1 day of absence from work cannot exceed the amount of one-day salary. Altogether, all fines cannot exceed 1/10 of the salary (Article 87 § 3 of the Labor Code).

Compulsory deductions from wages are made without the consent of the employee. However, in order to make voluntary deductions, the employee's written consent to set off a specific type of receivables is necessary. The employee must know the amount and title of the deduction.

Deductions are made after deducting contributions for ZUS (social and health insurance), as well as advance payments for personal income tax.

Importantly, there is a chronology in making deductions from wages, which is important if there is a coincidence of maintenance and non-maintenance enforcement. If you want to know in what order the deductions are made, read the rest of this article.

Amount free of deductions

When making deductions from your wages, please be aware that there are limits to the amount withheld. This is related to the amount free of deductions. It protects against making excessive deductions and ensures a minimum living. Importantly, in the case of maintenance deductions, no deduction-free amount is applied.

Attention!

The amount free of deductions does not apply in the case of maintenance enforcement.

The amount free from deductions is the amount of:

  • the minimum remuneration for the work of a full-time employee (after deduction of social security contributions and income tax advance payments) - in the case of non-maintenance payments,

  • 75% of the above-mentioned remuneration - in the case of cash advances,

  • 90% of the above-mentioned remuneration - in the case of financial penalties (Article 871 § 1 of the Labor Code).

The amount free from deductions, in the case of voluntary deductions is the amount of:

  • the minimum remuneration for the work of a full-time employee (after deduction of social security contributions and income tax advance payments) - in the case of receivables to the employer,

  • 80% of the above-mentioned remuneration - in the case of other receivables.

In the case of a part-time employee, the amount free from deductions is proportionally reduced (Article 871 § 2 of the Labor Code). This rule applies to both compulsory and voluntary deductions.

As you can see, the amount free from deductions depends on the amount of the minimum wage. Due to the fact that the minimum wage increases every year, the amount free from deductions also changes.

There may be a situation when an employee receives several payments in one month, e.g. in addition to remuneration for work, he / she receives a jubilee award. In this case, deductions are made from the total amount of all payments made during the month. This rule applies to components of remuneration for periods longer than 1 month (Article 87 § 8 of the Labor Code).

Deduction Limits

In addition to the free amount, there are deduction limits in the case of deductions from the salary.

Deductions from remuneration may not exceed:

  • ⅗ remuneration after deduction of ZUS contributions and income tax advance - in the case of maintenance deductions,

  • ½ remuneration after deduction of ZUS contributions and income tax advance - in the case of non-maintenance deductions.

In the case of amounts paid on the previous payment date for the time of absence from work for which the employee retains the right to remuneration, deductions in full amount may be made without the consent of the employee. The employer may only deduct the overpaid remuneration in the next payment period following the unjustified payment.

Convergence of alimony and non-alimony enforcement

In the event of multiple executions, the deductions are made in the following order:

  • maintenance deductions,

  • non-maintenance deductions under enforcement orders,

  • cash advances,

  • financial penalties.

Maintenance deductions are made first. Only after them, provided that there is still the amount of remuneration from which it will be possible to make a deduction and an amount free of deductions, the employer may make further deductions. Voluntary deductions are made last.

If there is a coincidence of maintenance and non-maintenance enforcement, the total limit will be ⅗ of the remuneration after deduction of social security contributions and income tax advance payment.

Example 1.

Mr. Andrzej earns PLN 4,000 a month. His salary is subject to maintenance in the amount of PLN 500 per month. In addition, he has a debt in the form of a bank loan in the amount of PLN 7,000. Deductions in what amount will the employer be able to make?

  1. Deduction of ZUS contributions from gross wages and income tax advance

    1. PLN 4,000 x 13.71% (social security contributions) = PLN 548.40

    2. PLN 4,000 - PLN 548.40 = PLN 3,451.60

    3. PLN 3,451.6 x 9% (health insurance contribution) = PLN 310.64

PLN 3,451.6 x 7.75% (health insurance contribution to be deducted) = PLN 267.5

    1. PLN 3,451.6 - PLN 111.25 (BUY) = PLN 3340.35

    2. PLN 3,340.35 x 18% - PLN 46.33 (tax-free amount) = PLN 554.93

    3. PLN 554.93 - PLN 267.5 = PLN 287.43 ~ PLN 287 (advance income tax)

    4. PLN 4,000 - PLN 548.40 (social security contributions) - PLN 310.64 (health insurance) - PLN 287 (advance income tax) = PLN 2,853.96 (net remuneration)

  1. PLN 2,853.96 x ⅗ = PLN 1,712.38 (permissible amount of deductions for alimony payments)

  2. PLN 2,853.96 - PLN 500 = PLN 2,353.96 (remuneration after the maintenance deduction)

  3. PLN 2,353.96 - PLN 1,459.48 (minimum remuneration for work in 2017) = PLN 894.48 (this amount can be deducted from a bank loan)

  4. PLN 500 + PLN 894.48 = PLN 1,394.48 <PLN 1,712.38

  5. PLN 2,853.96 - PLN 500 - PLN 894.48 = PLN 1,459.48 (the salary the employee will receive).

The employer may make a maintenance deduction in the full amount (PLN 500) and a deduction of PLN 894.48 towards a bank loan.