THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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The GGestricted g&ishment or deduction by employers from the compensation of 
employees encourages liberal extension of credit by unscrupulous parties. 
Garnishment as a creditor's remedy sometimes results in loss of employment by the 
debtor, resulting in the disruption of employment, production, and consumpt'on which 
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constitutes a substantial burden on local commerce. 
This bill seeks to regulate the garnishment of compensation arising from employment. 


THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
L“, 
.1 
S.B.No. 
1579 
rltLEIVED BY: 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PROVIDING FOR RESTRICTIONS ON GARNISHMENT OF COMPENSATION DUE FOR 
PERSONAL SERVICES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act may be cited as the “Restrictions on Garnishment 
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of Compensation Act.” 
SECTION 2. Definition of Terms. -For purposes of this Act, the term - 
(1) “Earnings” means compensation paid or payable for personal services, 
periodic 
whether denominated as wages, salary, commission, bonus, or otherwise, and includ 
payments pursuant to a pension or retirement program. 
(2) “Disposable Earnings” means that part of the earnings of any ndividual 
remaining after the deduction from those earnings of any amounts required by law to be 
withheld. 
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(3) “Garnishment” means any legal or equitable procedure through which the 
earnings of any individual are required to be withheld for payment of any debt. 
SECTION 3. Restriction on Garnishment. - 
(1) Except as provided in subsection (2) of this Section, the maximum part of the 
aggregate disposable earnings of an individual for any workweek which is subjected to 
garnishment may not exceed - 
(a) twenty five per centum (25%) of his disposable earnings for that week, or 


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(b) the amount by which his disposable earnings €or that week exceed thirty 
(30) times the minimum hourly wage prescribed by law in effect at the !time the eamlngs are 
payable whichever is less. In the case of earnings for any pay period ober than a week, the 
Secretary of Labor and Employment shall by regulation prescribe a multiple o f t he 4 
idimum 
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hourly wage required by law equivalent in effect to that set forth in paragraph (2). 
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(2) (a) The restrictions of subsection (1) of this Section do not apply in the cjue of 
any order for the support of any person issued by a poyt of 
competent jurisdiction or in accordance with an administrative procedure, which is established 
by law, which affords substantial due process, and which is subject to judicial review. 
(i) 
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(aa) any order of any court having jurisdiction over,cases 
involving bankruptcy proceedings. 
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(bb) any debt due for any national internal revenue t; 
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imposed by a-local government. 
(cc) The maximum part of the aggregal 
of an individual for any workweek which is subject to garnishment to enf 
support of any person shall not exceed - 
(aaa) where such individual is sup 
dependent child other than a spouse or child with respect to whose sup 
centum (50%) of such individual's disposable earnings for that week; and 
(bbb) where such individual is n 
spouse or dependent child described in clause (i), sixtycer centum (60% 
disposable earnings that week; 
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Except that, with respect to the disp 
workweek the fifty per centurn (50%) specified in c 
per centum (55"/0) and the sixty per centum (60%) s 
be sixty-five per centum (65%) if and to the extent 
to enforce a support order with respect to a pen 
which ends with the beginning of such workweek. 
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disposable 
:e any ordf 
mrting his s 
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supportin) 
)f such in? 
individui 
med to be 
shall be d, 
)ject to gar 
twelve-wec 
tax 
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SECTION 4. Execution Or Enforcement Of Garnishment Order Or Process 
No court or administrative agency make, execute, or enforce any order or process in 
this Act. 
earnings have been subjected to garnishment for more than one indebtedness. 
SECTION 8. Separability Clause. - If any provision or part thereof, is held 
SECTION 5. Restriction on Discharge From Employment By Reason of Garnishment. - 
(1) No employer may discharge any employee by reason of the fact that his 
earnings have been subjected to garnishment for any one indebtedness. 
(2) Whoever willfully violates subsection (1) of this Section shall be fined not 
more than THIRTY THOUSAND PESOS (P30, OOO.OO), or imprisoned for not more than one 
(1) year, or both. 
invalid or 
SECTION 6. Enforcement by Secretavy ofLabor and Employment. - The Secretary 
of Labor and Employment shall enforce the provisions of this Act. 
SECTION 9. Repealing Clause. - Any law, presidential decree or i ssuance, executive 
order, letter of i nstruction, administrative order, rule o r regulation c ontrary t 0, or inconsistent 
with, the provisions of this Act is hereby repealed, modified or amended accordingly. 


SECTION 10. Effectivity CZause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
I343