One of the tools available to creditors against debtors is the issuance of a garnishee order against a salary or wage or wage of the debtor, provided that the garnishee order is applicable only against any amount in excess of a sum protected by law.
Set in 1995, the amount previously established by law which was exempt from such attachment stood at Lm300 (€698.81) per month. This amount was significantly higher than the minimum wage at that time.
Acting under the powers of Article 382 of the Code of Organisation and Civil Procedure, the Ministry for Justice has recently declared a substantial change to the salary or wages exempt from attachment, marking the first adjustment since 1995. Effective from January 1, 2024, the revised amount, outlined in Legal Notice 302 of 2023, is set at €1,233.00 per month.
This amendment is rooted in the acknowledgment that the previously set sum, established 28 years ago, no longer aligns with the benchmarks for a respectable and dignified standard of living, even falling below the present minimum wage. This change reflects the necessity of this adjustment to address societal shifts and ensure a fair balance between creditors and debtors.
Av. Gianluca Cappitta
Mifsud & Mifsud Advocates
For more information you can contact one of our Team Members at Mifsud & Mifsud Advocates.