What Happens with Wage Garnishment?

The Short Answer

When a bailiff places a wage garnishment, your employer is legally obligated to withhold a portion of your salary before you receive it. This money goes directly to the creditor to pay off your debt. You always keep the garnishment-exempt amount - this is the minimum amount you need to live on. The garnishment continues until your debt is fully repaid or the garnishment is lifted.

What does the law say?

Wage garnishment is regulated in the Dutch Code of Civil Procedure. A bailiff can only place a garnishment after a court ruling or other enforceable title. The law protects employees by the garnishment-exempt amount - a minimum amount that is always exempt from garnishment. Certain benefits are also completely exempt from garnishment, such as child allowance and healthcare allowance.

What should you pay attention to?

It is important that your employer withholds the correct amount and respects the garnishment-exempt amount. Check if the garnishment order is valid and if the correct procedure was followed. Also, note that wage garnishment takes priority over other creditors. If you have multiple debts, wage garnishment often pays off only one debt at a time.

Practical Example

Let's say you earn €2,500 net per month and have an unpaid bill of €5,000. After a court ruling, the bailiff places a wage garnishment. Of your €2,500, the garnishment-exempt amount of €1,414.11 remains free. Of the remaining €1,085.89, a maximum of half (€542.95) can be garnished. You will therefore have €1,957.06 left to live on. This garnishment will continue until the €5,000 plus costs are fully paid off.

What can you do?

If you are confronted with wage garnishment, it is important to take action quickly.