Eighty per cent. For an ordinary debt, the Ontario wage garnishment exemption limit protects 80 per cent of your wages. Steps to Justice puts the most a creditor can garnish at 20 per cent of your wages. For a support order, the protected share is 50 per cent.
That is the number people search for. It is not the whole answer. The wages it protects do not include what your employer is required by law to deduct. A judge can change it on a motion. And one creditor does not need a court to garnish at all. We will give you those limits first, because it is better to learn them here than from your next pay stub.
The rule, and the Act that sets it
The rule sits in section 7 of Ontario’s Wages Act. Subsection 7(2) says that “80 per cent of a person’s wages are exempt from seizure or garnishment.” Subsection 7(3) sets the exception. When the debt is an order for support or maintenance enforceable in Ontario, only 50 per cent is exempt.
The Act also decides what counts as wages. Payments from a disability insurance or indemnity plan meant to replace lost income are deemed wages under subsection 7(1.1). That holds whether the scheme is administered by the employer or by another person.
The Small Claims Court follows the same line. Rule 20.08 of the Rules of the Small Claims Court ties its cap to the Act. It says the amounts paid into court “shall not exceed the portion of the debtor’s wages that are subject to seizure or garnishment under section 7 of the Wages Act.”
Wages after the deductions the law requires
This is the part people get wrong. Subsection 7(1) says that for this section, wages do not include “an amount that an employer is required by law to deduct from wages.” The exemption is counted on what remains.
What does the rule look like on a real pay week? The legal information site Steps to Justice uses this example: “if you make $1,000 per week, they can only garnish up to $200.” Under a support order, the protected half replaces the protected four fifths, so the reachable share grows.
What a court creditor cannot reach at all
Steps to Justice lists three kinds of payment a creditor in most cases cannot garnish: employment insurance, social assistance and pension payments. That holds “even if you’ve deposited the payment into your bank account.” It also warns that “some government organizations can garnish your pension or social assistance payments.”
A joint bank account is split. If you hold the account with one other person, “no more than half of the account can be garnished.”
Who can move the line
The 80 per cent is a starting point, not a guarantee. Either side can ask a judge to move it.
- The creditor can ask for more. Under subsection 7(4), the creditor can bring a motion to decrease your exemption. The judge looks at the nature of the debt, your financial circumstances and anything else the judge considers relevant.
- You can ask to keep more. Under subsection 7(5), you can bring a motion to increase your exemption. The judge looks at your financial circumstances and anything else relevant.
Steps to Justice says the Small Claims Court usually holds garnishment hearings by Zoom. You can ask for one if “the garnishment will create real financial hardship for you.” At the hearing, you can ask “that less money be taken from your wages.” The form is a Notice of Garnishment Hearing. Serve it on your creditor, any co-owners of the debt and anyone else affected, such as your employer. After that, you file it at the court. Bring the pay stubs and the bills.
If your employer receives notice of either motion, subsection 7(6) says it may pay the part that is not exempt into court.
Support orders run under their own Act
Under the Family Responsibility and Support Arrears Enforcement Act, 1996, it is the duty of the Director of the Family Responsibility Office to enforce support orders filed in that office. Section 23 says the deduction “shall not exceed 50 per cent of the net amount.” The Act defines the net amount as pay less income tax, Canada Pension Plan, Employment Insurance, union dues and any other deductions the regulations prescribe.
Two other rules in that Act matter here:
- Refunds and lump sums. Subsection 23(3) allows up to 100 per cent of an attachable income tax refund or other lump sum payment to be deducted under a support deduction order.
- Joint bank accounts. Under subsection 45(1), a garnishment served on a bank attaches 50 per cent of the money in an account you hold with someone else.
Do not count a tax refund as yours while support is in arrears.
A CRA garnishment is a different document
The Canada Revenue Agency garnishes for income tax with a Requirement to Pay. In the CRA’s own table for employers, the legal requirement for that document reads “No court order required.”
That changes how you read the Wages Act. The motions in subsections 7(4) and 7(5) are brought before a judge of the court in which the notice of garnishment is issued. For a CRA garnishment, the CRA says the first page shows the maximum amount the employer must withhold. Start with that page. The post on the CRA requirement to pay notice shows how to read your copy.
| Creditor type | Protected share | Who sets it | How to challenge |
|---|---|---|---|
| Ordinary judgment debt | 80 per cent of wages exempt | Wages Act, subsection 7(2) | Motion under subsection 7(4) or 7(5) |
| Support order | Deduction up to 50 per cent of the net amount; up to 100 per cent of an attachable refund under subsection 23(3) | Family Responsibility and Support Arrears Enforcement Act, 1996, subsection 23(1) | Not covered in this post |
| CRA Requirement to Pay | No court order required; the first page of the document shows the maximum amount to withhold | The CRA, in the document | Start with the first page of the document |
If the CRA is the creditor, the questions change. Is the debt personal income tax, or a business account? Have all the returns been filed? The page on CRA tax debt help for individuals and business owners covers the tax side together. Mention any unfiled returns on that first call too.
When the exemption is not enough
The exemption limits how much of each pay can be garnished. It does not reduce the debt. Anyone who tells you the exemption protects you from the debt is selling you something.
A formal filing is a different route. For the stay of proceedings, read our page on what a consumer proposal is. If you are comparing that against a payment plan, our post on debt relief vs debt consolidation shows what each route changes.
Questions people ask
What is the most that can be garnished from wages in Ontario?
For an ordinary judgment debt, 20 per cent of your wages can be reached. Subsection 7(2) of the Wages Act exempts 80 per cent of wages. Under subsection 7(1), wages here do not include an amount your employer is required by law to deduct. On a motion by the creditor, a judge may order the exemption decreased. On a motion by you, a judge may order it increased.
How much can be garnished for child or spousal support?
Up to 50 per cent of your net pay. Section 23 of the Family Responsibility and Support Arrears Enforcement Act, 1996 sets that limit. Subsection 23(3) allows up to 100 per cent of an attachable income tax refund or other lump sum payment to be deducted under a support deduction order.
Does the Wages Act limit apply to a CRA garnishment?
Read the CRA document, not the Act. In the CRA’s table for employers, a Requirement to Pay reads “No court order required.” It also says the first page shows the maximum amount to withhold. The Wages Act motions to change the exemption are brought in the court that issued the garnishment.
Is disability income protected the same way?
Yes, if the payments come from an insurance or indemnity scheme intended to replace income lost because of disability. Subsection 7(1.1) of the Wages Act says those insurance or indemnity payments shall be deemed to be wages for section 7.
Before the first call
Every file is different, and your buddy’s garnishment is not yours. Who the creditor is decides which of these rules applies to you.
Have three things in hand before you call. The first is the notice of garnishment or the CRA’s document. The second is your two most recent pay stubs. The third is a list of every creditor that has sued you or written to you. Tell us at the start if one of them is the CRA or a support order. It changes the advice.
Where we fit
Get Total Debt Relief is a debt consulting and representation firm, not a Licensed Insolvency Trustee. Only a Licensed Insolvency Trustee can file your documents for a consumer proposal or a bankruptcy with the Superintendent of Bankruptcy. However, he is not the only one you should get your information from. Unlike a Trustee, we look to preserve your equities and assets, not liquidate them. What we do is make sure you only pay what you have to pay, not what someone thinks you can pay. We use every tool available to make sure you protect your home, your business and other equities as well as Spousal rights. Once you’re ready to move forward with whichever process you choose, that’s when it’s time to move on to the selection of a Trustee. Please keep in mind that if for any reason, you have to deal with a legal matter during your Bankruptcy or Proposal, a Trustee can NEVER legally represent you. However, he CAN act against you. Choose your representation wisely!
DISCLOSURE:
Get Total Debt Relief is a debt consulting and representation firm. We are not a Licensed Insolvency Trustee, and we are not connected to the Canada Revenue Agency or any government body.
Only a Licensed Insolvency Trustee can file your documents for a consumer proposal or a bankruptcy with the Superintendent of Bankruptcy.
OUR SERVICE:
However, any Trustee you choose can’t legally represent you over your Creditors nor can he give you any advice that will benefit you over your Creditors. The Trustee’s job is to maximize how much he can get from you and your estate for the benefit of your Creditors and the more he collects in a Proposal, the more he makes.
What we do is the work before the filing and the path you choose will come from the advice and information that goes with it. More importantly, we use tools that are not available to the Trustee because of who’s interests he represents. We go through your whole situation with you. We answer your questions, for as long as it takes and as many times as you need to ask them. Every consultation is free and if or when you decide to move forward, you’ll know which option best suits you, your family and or your business. And, unlike the Trustee, we will NEVER use the information you’ve given us against you in Court. The bottom line is that we don’t look to liquidate your assets and equities, we look to protect them.