The Labor Code and the Civil Procedure Code refer, in legal terms, to the salary retentions and to their limits. There are several types of salary retentions and both parties (employer and employee) must comply with the legal regulations on them.

The retentions from salary can be organized, in practice, in several categories:

• Salary retentions prescribed by law – social contributions, tax, taxes etc.
• Salary withholding set by courts: support obligations, other liabilities – retentions from banks for loans outstanding, compensation for damage etc.;
• Amounts owed to public authorities (ex. local authorities, financial administration);
• Salary retentions agreed between employer and employee, in compliance with legal terms – private pension, labor union, insurance etc.

The Labor Code establishes, in Art. 169, paragraph 2, that the salary retentions as damages caused to the employer can not be made unless the employee's debt is due, liquid and payable and has been found as such by a final and irrevocable court decision.

In this context, in case of damage caused by the employee, even if he agrees to pay damages, for the strict law compliance it is necessary to have a court decision in this regard. The employee engagement of payment can be used as evidence in court.

To avoid addressing the court in case of damage caused by the employee, in practice the employee pays directly the damage after receiving full salary, so the money are in his heritage.

The law establishes that the total salary retentions can not exceed, every month, half of the net salary.

 

When there are more creditors of the employee, the mandatory order that the employer must respect is, according to the Labor Code:

a) the support obligations, under the Family Code – the support obligation exists between husband and wife, relatives in a straight line, between siblings and between other persons specifically required by law, applicable provisions in the case of adoption and also between former husbands, as provided by law, under Article 516 of the Civil Code (Law 287/2009, republished and updated 2015); b) contributions and taxes owed to the state; c) damage to public property by illegal acts; d) the cover of other debts.

Also, the Civil Procedure Code requires, at art. 728, the tracking income limits, to half of the net income for amounts for support obligation or allowance for children and to one-third of the net income for any other debts.

Legal note – art. 728, New Civil Procedure Code (1) The salaries and other regular incomes, pensions awarded under the social security, also other amounts that are periodically paid to the debtor and are addressed to ensure livelihoods may be followed: a) up to half of the net income for the amounts due as support obligation or allowance for children; b) up to a third of the net income for any other debts. (2) If there are multiple prosecutions on the same amount, the tracking can not exceed half of the net income of the debtor, regardless of the nature of the claims, unless the law provides otherwise. (3) The work revenues or any other amounts which are periodically paid to the debtor and are addressed to ensure his livelihoods, if they are less than the amount of net minimum salary can be track only on the part exceeding half of this amount. (4) The aids for temporary work disability, the compensation granted to employees in the event of dissolution of the individual labor contract on any legal provisions and the amounts for unemployed persons, by law, can not be traced only for amounts due as support obligation and compensation for damage caused by death or bodily harm, unless the law provides otherwise. (5) The follow of the rights under par. (4) can be made up to half of the amount. (6) The amounts withheld under par. (1) – (4) are issued or distributed according to art. 863 and following. (7) The state allowances and the allowances for children, sick child care aids, maternity grants, loans in case of death, the state granted scholarships, allowances and any other compensation with special purpose, determined by law, can not be traced for any debt.

 

Limit retentions table depending on the types of income

Types of incomes	The withholding nature	The retention limits
Salaries Regular incomes Pensions Amounts for ensuring livelihoods liabilities	Amounts due as support obligation or child allowance	Any other debts
	Up to half of the net income	Up to one third of the net income
Aid for temporary disability Compensation for dismissal based on legal provision Amounts owed by unemployees	Amounts due as support obligation, compensations for damage caused by death / bodily harm, unless the law provides otherwise	Up to half the amount
State allowances Allowances for children Aid for the sick child care, maternity, in case of death Scholarships granted by the state Daily allowances Any other special allowances		Can not be tracked for any debts

The Labor Code sets the limit based on the net salary, while the Civil Procedure Code relates to the net income, as the limit retentions is made for amounts from other sources besides salary.

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