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Legislation to stop predatory wage deductions under way

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Cape Town - The National Assembly is considering an amendment bill to the Magistrates’ Court Act 32 of 1944 to curb predatory wage garnishment orders.

Officially known as emolument attachment orders (EAO’s), these are court orders that require employers to deduct payments from the salary of an employee to service debts.

Under current South African law, there is no limit on how much of a person’s salary can be garnished. Most countries place limits on the percentage or amount that can be garnished. For example, Rwanda sets limits on garnishments at 33% of a person’s wage, while Australia requires that a debtor access at least AU$447 from their weekly salary.

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