05/07/2025
The (SC) has clarified that the salaries of public officials can be garnished—or legally collected—by the courts to pay off their debts. These salaries are not exempt from garnishment under current laws and rules.
In a decision written by Associate Justice Samuel H. Gaerlan, the SC’s Third Division ruled that the salary of Atty. Fred L. Bagbagen, a Baguio City councilor, can be garnished to pay his debt to respondent Anna May F. Perez.
Bagbagen was cleared of criminal charges for estafa, but the Regional Trial Court (RTC) still found him civilly liable and ordered him to pay Perez PHP 308,000. The RTC allowed the garnishment of his salary, which was then withheld by the Philippine Veterans Bank.
Bagbagen attempted to stop the garnishment, arguing that his salaries should not be collected due to public policy reasons, and that these funds were still considered government property until spent.
The SC affirmed the ruling of the trial court and the Court of Appeals that once a public official’s salary is deposited in their personal bank account, it is no longer considered government money.
It emphasized that there is no law exempting public officials’ salaries from garnishment. Under Rule 39 of the 𝘙𝘶𝘭𝘦𝘴 𝘰𝘧 𝘊𝘰𝘶𝘳𝘵, salaries – whether in the public or private sector – can be garnished to settle debts.
An exception exists for manual laborers, whose wages are protected to ensure they can still support their families. The SC explained that manual laborers “usually look to the reward of a day’s labor for immediate or present support, and such persons are more in need of the exemption than any other.”
However, only up to four months’ worth of wages are exempt. Any amount beyond that can still be collected to pay debts.
Read the full text of the Press Release at https://tinyurl.com/44u5fp2s.
Read the full text of the Decision at https://tinyurl.com/4pzbvsv9.
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