Specific Order of Employee Credit Payments

The order of credit payment types is the following: alimony, decisions of tax authorities (taxes due), administrative payment prohibitions and enforcement decisions. The latter are executed in the order they were received by the employer.

So should due credit payment exist for employee and he or she received decision of tax authority notwithstanding, the decision has priority before tax deduction. That is, tax deduction is stopped if tax liablity exceeds the minimum amount. For detailed treatment see follow-up.

Maximum Allowed Amount of Deduction

The maximum allowed amount of deduction depends on its type. In accordance with the decisions of tax authority apply provisions of the Tax Procedure Act (ZDavP-2). With respect to other deductions apply provisions of the Execution of Judgments in Civil Matters and Insurance of Claims Act (ZIZ). Furthermore, you have to consider provisions of the Social Security Act (ZSV).

Hence decisionso of tax authority will be subject of provisions of the Tax Procedure Act. Here it is stated that one third (1/3) of net salary can be deducted for employee. Moreover, provisions of the Social Security Act (ZSV) are to be respected here. On the other hand, it is stated here that the employee is entitled to minimum income amount (in case when of low salary).

For all other types of deductions apply provisions of the Execution of Judgments in Civil Matters and Insurance of Claims Act which states that two thirds (2/3) of employee's salary can be deducted. As for alimonies, two thirds (2/3) of minimum salary amount of employee can be deducted. Here apply provisions of theSocial Security Act (ZSV), stating that employee must at least get minimum income amount.

If the debtor provides livelihood of the other family members, the minimum income amount increases:
- up to 0.7 share of the minimum income amount for any other adult person
- up to 0.3 shareof minimum income amount of children
- minimum income amount increases by 30% for single-parent familiies.