Luxembourg’s Ministry of Justice has informed that there will be changed to the number of transferable and seizable instalments on earned income, pensions and unearned income from 1 December 2016.
As of 1 December this year, the Grand Duke’s regulation from 27 September 2016 will come into force regarding salaries, pensions and private income, thus replacing the current regulation dating from 26 June 2002.
This modification to seizable and transferable amounts is an attempt to take into account the increase in the index used in the mobile salary grid. The changes will affect any legal seizures forced upon salaries, pensions or private income, including seizures carried out before the specified date.
As a result, there will be a recalculation of all salary garnishments which allowed lenders to block the sum owed by an employee. Likewise, people who have authorised such assignments in order to recover debt will be affected by these changes. Therefore, the new regulations apply to employees (assignor) who give their employer (assigned debtor) to assign a part of their salary to a third person (assignee).
It is important to specify that the current Grand Ducal regulation from 2002 remains applicable until 30 November 2016.
