Disposable Earnings

That portion of one's income that a person is free to spend or invest as he or she sees fit, after payment of taxes and other obligations.

Legally mandated deductions are those for the payment of taxes and Social Security. Any deductions for medical insurance, Pension plans, life insurance, or employee savings plans do not qualify and must be included in the disposable earnings. Take-home pay is, therefore, not necessarily synonymous with disposable earnings because of this distinction between the deductions.

The federal Consumer Credit Protection Act (15 U.S.C.A. § 1601 et seq. [1968]) establishes a minimum amount of disposable earnings that can be garnished by a debtor's creditors. The lesser figure of 25 percent of a worker's weekly disposable earnings or the amount by which his or her disposable earnings exceed thirty times the maximum hourly wage is subject to Garnishment.

State laws also impose restrictions on the garnishment of debtor's wages.

Mentioned in

garnishment

References in periodicals archive

Mortgage payments in Manchester take up over a quarter (26%) of disposable earnings (Q4 2018)

Lloyds-Wonderwalls - Manchester homes up 50%

In recent years, we have seen increase in the disposable earnings, shifting the way of life and economic situation.

Cover Stories - Overview of auto sector of Pakistan

While mortgage payments are at their lowest as a proportion of disposable earnings in Northern Ireland (19%), Scotland and the North East (both 20%), Yorkshire and the Humber and the North West (both 23%), they are highest in London (45%), the South East (40%) and South West (34%).

The most affordable part of Britain to buy a home - where it's 4 times cheaper to get a mortgage; Depending on where you live you could be paying double the national average for your mortgage - or just half it

Section 222.11(2)(b) provides, "disposable earnings of a head of family ...

Employed, but not an employee: the applicability of Florida's head-of-household exemption

The new law reduces the prohibited amount of an individual judgment debtor's weekly disposable earnings subject to levy under an earnings withholding order from exceeding the lesser of 25 percent of the individual's weekly disposable earnings or 50 percent of the amount by which the individual's disposable earnings for the week exceed 40 times the state minimum hourly wage, or applicable local minimum hourly wage, if higher, in effect at the time the earnings are payable.

Don't labor under new laws: what employers need to know about 2016 California Labor Laws

Halifax found that parents are paying more than PS650 a month on a variety of items, equating to more than one third (35%) of average UK disposable earnings.

FINANCIAL VIEW; Your finances may be motoring along quite smoothly at the moment, but how well would you cope with a sudden shock?

On average parents are paying in excess of GBP650 a month of a range of items for their children, which equates to 35% of the average UK disposable earnings.

Average cost of raising a child to 11 increases 4%

Halifax found that parents are paying more than PS650 a month for a variety of items, equating to more than one-third (35%) of average UK disposable earnings.

POUND NOTES

Halifax found that parents are paying more than PS650 a month on a variety of items, equating to more than one third (35 per cent) of average UK disposable earnings. Childcare is the most expensive element of raising a child, the study found.

pound notes

The proportion of a first-time buyer's disposable earnings spent on mortgage payments stood at 30% in the last three months of 2013, compared with a peak of 50% in the summer of 2007.

Return of the first-time buyer