FOURTEENTH CONGRESS OF THE REPUBLIC) 
First Regular Session 
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OF THE PHILIPPINES 
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S. No. sENta 
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Introduced by Senator Miriam Defensor Santiago 
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 lo regulate the garnishment of compensation arising from employment.* 
* This bill was originally filed during the Thirteenth Congress, First Regular Session. 


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OF THE PHILIPPINES 
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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
First Regular Session 
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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 of 
Compensation Act of 2007.” 
SECTION 2. Dejnition ofTerrns. -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. 
SECTION 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, 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 
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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. 
Any debt due for any national internal revenue tax or tax imposed by a local 
government. 
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 - 
(3) 
(4) 
(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 (l), 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 centurn (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 
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a support order with respect to a period which is prior to the twelve-week period which 
ends with the beginning of such workweek. 
SECTION 4. Execution Or Enforcement Of Garnishment Ovder Or Process Prohibited. - 
No court or administrative agency make, execute, or enforce any order or process in violation of 
this Act. 
SECTION 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) o f  this Section shall be fined not more 
than Thirty Thousand Pesos (P30,000.00), or imprisoned for not more than one (I) 
year, or both. 
SECTION 6. Enforcement by Secretary of Labor and Employment. - The Secretary 
of Labor and Employment shall enforce the provisions of this Act. 
SECTION 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. 
SECTION 8. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the reminder of the law of the provision not othenvise affected shall remain 
valid and subsisting. 
SECTION 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. 
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SECTION 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
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