What is the maximum percentage of my salary that can be garnished?

Under Georgian law, a maximum of 50% of your net salary can typically be deducted for forced enforcement. Exceptions apply for alimony and child support, where the deducted percentage can be legally higher.

What happens if an employer refuses to deduct the salary?

If an employer receives a legally binding enforcement order but fails to garnish the employee's wages, the employer becomes jointly and severally liable. The creditor can then sue the employing company to pay the debt.

Can a debtor escape garnishment by quitting their job?

Temporarily, yes. But once the debtor secures a new official job, the lawyer will identify the new employer through state databases and immediately send a new deduction order to resume the garnishment.

Deductions from Wages, Pensions and Other Income

Introduction: The Essence of Deductions from Income

Deductions from wages, pensions, and other periodic income represent one of the most important and stable mechanisms of enforcement proceedings. When a debtor does not have sufficient savings in bank accounts or does not own realizable real or movable property, the debtor's monthly, stable income becomes the primary source for the creditor to recover the debt. This mechanism involves the enforcer sending a mandatory instruction to the employer or the organization issuing the relevant payout (e.g., the Pension Agency) to automatically deduct a certain percentage from the debtor's salary or pension and transfer it to cover the debt. This process ensures the gradual but guaranteed satisfaction of the creditor's claim. At the same time, deductions from income are strictly regulated by law to protect the debtor's subsistence minimum and prevent a catastrophic deterioration of their social condition.

What the Income Deduction Service Covers

The income deduction service encompasses a complex of legal actions aimed at discovering the debtor's official and unofficial income sources and extending enforcement actions to them. The process begins with filing an application at the National Bureau of Enforcement, after which lawyers and enforcers investigate the databases of the Public Registry, the Revenue Service, and the Social Service Agency to determine the debtor's place of employment. The service includes sending the writ of execution and the deduction order to the employer, as well as monitoring that the employer honestly and timely deducts and transfers the funds. In addition to salaries and pensions, the service covers other types of income, such as author's royalties, rental income, or company dividends. The lawyer ensures that no legal income escapes enforcement attention.

Common Practical Scenarios

In practice, the mechanism of salary deduction is most frequently used in alimony enforcement, non-payment of consumer loans, and the collection of small fines. For example, when a court orders a parent to pay alimony, the enforcer obliges their employer to deduct the corresponding portion of the salary every month and transfer it to the child's account. Another common scenario is when an individual cannot pay a bank credit; the bank applies to the bureau, which sends an order to the debtor's workplace to garnish a portion of the salary. In the case of pensioners, enforcement extends to pension accounts, although the protection mechanisms here are much stricter. In a business context, if the debtor is a company director receiving a high salary, this income is also subject to enforcement deduction to fulfill their personal financial obligations.

Georgian Legislation and Percentage Limits

The Law of Georgia on Enforcement Proceedings details the rules for deducting funds from salaries and other income. The main principle of the law is the protection of the subsistence minimum. As a rule, during forced enforcement, it is permissible to deduct no more than 50 percent from the salary and other equated income. This means that the employer is obliged to transfer at least half of the salary to the employee for their existence. However, in the case of alimony, this limit can be higher so that the child's interests do not suffer. Furthermore, the law protects certain incomes that are completely exempt from enforcement: for example, social assistance (targeted social programs), one-time aid during disasters, and some types of compensation. Recovering funds from pension savings also has its strict regulations so that the pensioner is not left without a livelihood.

Employer Liability and Procedure

During the enforcement process, a third party – the employer – plays a crucial role. The enforcer sends them an official letter (an order) specifying the debtor's details, the debt amount, and the percentage to be deducted. The employer is obligated to execute this order exactly every month when issuing salaries. If the employer refuses to deduct the funds, artificially reduces the debtor's official salary (and gives the rest in an envelope), or hides the fact of employment, they bear joint and several liability. This means the creditor can demand the payment of the debt directly from the employing company. Professional lawyers constantly check the behavior of employers and, upon discovering discrepancies, immediately request the application of sanctions against them, including fines, through the enforcement bureau.

Challenges: Informal Employment and Hidden Income

The biggest obstacle when deducting from income is the informal economy. Debtors often agree with employers to work without a contract or receive their salary in cash to avoid enforcement deductions. In such times, the National Bureau of Enforcement is powerless because the fact of employment is not recorded in official databases. In such a situation, an experienced advocate initiates a private investigation: they collect evidence of the debtor's actual work (e.g., work uniform, witness testimonies, social media activity) and apply to the Labor Inspection or the Revenue Service to fine the employer for illegal employment. This pressure often forces the employer to officially register the debtor, after which the forced deduction of funds from the salary becomes possible.

Why Legal Services on legal.ge are Necessary

Recovering funds from salaries and other income is a lengthy process that requires systematic control and constant communication with employers. If you are a creditor, without a lawyer, it might take years to get your money back, or the debtor might easily avoid payment by formally changing jobs. And if you are a debtor and more than 50% of your salary is being illegally deducted, you immediately need legal protection. Legal.ge is the best platform in Georgia where you can select highly qualified lawyers and advocates specializing in enforcement and labor law. The experts featured on our site will ensure the prompt study of your case, control over employers, and the maximum protection of your financial rights. Do not leave your case to chance – find a reliable partner on legal.ge today.