Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
The unrestricted garnishment 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 consumption which 
constitutes a substantial burden on local commerce. 
This bill seeks to regulate the garnishment of compensation arising from employment. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
August 3, 2023
2:05 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
PROVIDING FOR RESTRICTIONS ON GARNISHMENT OF COMPENSATION 
DUE FOR PERSONAL SERVICES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Sec. 1. Short Title. – This Act may be cited as the “Restrictions on Garnishment of 
Compensation Act.” 
Sec. 2. Definition of Terms. – For purposes of this Act, the term: 
(A)
“Earnings” means compensation paid or payable for personal services, whether
denominated as wages, salary, commission, bonus, or otherwise, and includes
periodic payments pursuant to a pension or retirement program.
(B)
“Disposable Earnings” means that part of the earnings of any individual
remaining after the deduction from those earnings of any amounts required by
law to be withheld.
(C)
“Garnishment” means any legal or equitable procedure through which the
earnings of any individual are required to be withheld for payment of any debt.
Sec. 3. Restriction on Garnishment. – 
(A)
Except as provided in paragraph (B) 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 –
(1)
Twenty five per centum (25%) of his disposable earnings for that week,
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or 
(2) 
The amount by which his disposable earnings for that week exceed thirty 
(30) times the minimum hourly wage prescribed by law in effect at the 
time the earnings are payable whichever is less. In the case of earnings 
for any pay period other than a week, the Secretary of Labor and 
Employment shall by regulation prescribe a multiple of the minimum 
hourly wage required by law equivalent in effect to that set forth in 
paragraph (B). 
(B) 
The restrictions of subsection (A) of this Section do not apply in the case of: 
(1) 
Any order for the support of any person issued by a court 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. 
(2) 
Any order of any court having jurisdiction over cases involving 
bankruptcy proceedings. 
(3) 
Any debt due for any national internal revenue tax or tax imposed by a 
local government. 
(4) 
The maximum part of the aggregate disposable earnings of an individual 
for any workweek which is subject to garnishment to enforce any order 
for the support of any person shall not exceed – 
(a) 
Where such individual is supporting his spouse or dependent 
child other than a spouse or child with respect to whose support 
is used, fifty per centum (50%) of such individual’s disposable 
earnings for that week; and 
(b) 
Where such individual is not supporting such a spouse or 
dependent child described in subparagraph (1), sixty per centum 
(60%) of such individual’s disposable earnings that week. 
 
Except that, with respect to the disposable earnings of any individual for any workweek 
the fifty per centum (50%) specified in paragraph (B)(4)(a) of this Section shall be 
deemed to be fifty-five per centum (55%) and the sixty per centum (60%) specified in 
paragraph (B)(4)(b) of this Section shall be deemed to be sixty-five per centum (65%) 
if and to the extent that such earnings are subject to garnishment to enforce a support 


 
order with respect to a period which is prior to the twelve-week period which ends with 
the beginning of such workweek. 
 
Sec. 4. Execution or Enforcement of Garnishment Order or Process Prohibited. 
– No court or administrative agency make, execute, or enforce any order or process 
in violation of this Act. 
 
Sec. 5. Restriction on Discharge from Employment by Reason of Garnishment. 
– 
(A) 
No employer may discharge any employee by reason of the fact that his 
earnings have been subjected to garnishment for any one indebtedness. 
 
(B) 
Whoever willfully violates paragraph (A) of this Section shall be fined not more 
than Thirty Thousand Pesos (P30, 000.00), or imprisoned for not more than one 
(1) year, or both. 
 
Sec. 6. Enforcement by Secretary of Labor and Employment. – The Secretary of 
Labor and Employment shall enforce the provisions of this Act. 
 
Sec. 7. Effect on Existing Laws. – This Act does not annul, alter or affect, or exempt 
any person from complying with any existing law – 
(A) 
Prohibiting garnishments or providing for more limited garnishments than are 
allowed under this Act, or 
(B) 
Prohibiting the discharge of any employee by reason of the fact that his 
earnings have been subjected to garnishment for more than one indebtedness.  
 
Sec. 8. Separability Clause. – If any provision or part hereof, is held invalid or 
unconstitutional, the reminder of the law of the provision not otherwise affected shall 
remain valid and subsisting. 
 
Sec. 9. Repealing Clause. – Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or 
inconsistent with, the provisions of this Act is hereby repealed, modified or amended 
accordingly. 


 
 
Sec. 10. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
 
Approved,