Glossary

What is Garnishment?

A court or agency order directing an employer to withhold part of an employee's pay to satisfy a debt.

Payroll must follow the exact amount and period in the order, and the amount deducted should be shown on the payslip. Wages are partly protected by law, so employers should not deduct for a creditor without a valid order.

Related terms

  • Employees' Compensation (EC): A contribution paid by the employer alone to fund benefits for work-related sickness, injury and death, collected together with SSS contributions.
  • Final pay: The total amount owed to an employee who is leaving, including unpaid salary, prorated 13th month pay, the cash value of convertible unused leave and any other benefit due.
  • Government-mandated contributions: The SSS, PhilHealth and Pag-IBIG contributions that employers and employees must pay each month, together with the employer-only EC contribution.
  • Holiday pay: The pay an employee is entitled to for a regular holiday, whether or not the employee works.

Compute it in OneHRIS

OneHRIS applies Philippine pay and compliance rules in every payroll run. See the Help Center for step-by-step guides, try the free calculators, or see pricing.

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