Government increases salary threshold exempt from garnishee orders

The Ministry for Justice has announced a substantial revision to the amount of salary or wages 'exempt from attachment', marking the first adjustment since 1995.

The decision is set to come into effect on January 1, 2024.

The new regulation, as outlined in Legal Notice 302 of 2023, establishes €1,233.00 per month as the revised amount exempt from attachment.

Justice Minister Jonathan Attard, invoking powers conferred in Article 382 of the Code of Organisation and Civil Procedure, emphasised that this adjustment is a critical step to address the evolving social landscape and to ensure a more equitable balance between the interests of creditors and debtors.

"The amount of salary or wages not subject to attachment has never been revised since 1995. At that time, Parliament decided that the amount was to be Lm300 (€698.81) per month, meaning that it was much more than the minimum wage. In order to strike a balance between the interest of the creditors and debtors, we applied the rate of inflation on the amount established 28 years ago," Attard said.

This revision is grounded in the recognition that the previously established amount, dating back 28 years, no longer meets the standards of a decent and dignified living, falling even below the current minimum wage.

Attard said the mathematic calculation for the increase is based on data published by the National Statistics Office and the Central Bank, with the new amount of €1,233 established through the application of cost-of-living increments.