Disposable Earnings

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.

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References in periodicals archive ?
Owing to the growing disposable earnings of consumers in emerging regions, the demand for housing construction has demonstrated a firm upward arch in the past few years.
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.
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.
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.
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.
MD of Afgri's foods division Izaak Breitenbach, has announced that over the last two years chicken producers have slashed volumes as pressure on disposable earnings and strikes have prompted some consumers to switch to other proteins like polony and beans.
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.
The proportion of disposable earnings devoted to mortgage payments by a first-time buyer stood at 30 per cent in the last three months of 2013, compared with a peak of 50 per cent in the summer of 2007.
Mortgage payments typically take up 27% of disposable earnings for a new borrower, the lowest proportion since 1999 and well below the average of 36% over the past 30 years.
Typical mortgage payments for a borrower accounted for 27% of disposable earnings in the second quarter, the lowest proportion since the second quarter of 1999.
Within the GCC area, it appears the UAE has the largest disparity, where women's disposable earnings amounted to only 24 per cent of men's as of 2012.
Specifically, the amendment increased the amount of a debtor's exempt disposable earnings and also added certain requirements to the wage garnishment exemption waiver.