1. What is Wage Garnishment in Alberta?

Wage garnishment in Alberta is a legal process where a portion of an employee's earnings is withheld by their employer to pay a debt. Alberta law limits garnishments to 50% of disposable income or the court-ordered amount, whichever is less.

2. How Does Garnishment Work in Alberta?

The garnishment calculation follows this formula:

Where:

• Disposable Income — Gross pay minus mandatory deductions (taxes, CPP, EI)
• Court Order Amount — The amount specified in the garnishment order

Explanation: Alberta law protects debtors by ensuring they retain at least 50% of their disposable income, regardless of the court order amount.

3. Importance of Garnishment Calculation

Details: Proper calculation ensures compliance with Alberta's Employment Standards Code while satisfying creditor claims. Incorrect calculations can lead to legal issues for employers.

4. Using the Calculator

Tips: Enter the employee's disposable income (after mandatory deductions) and the court-ordered garnishment amount. The calculator will determine the maximum allowable garnishment under Alberta law.

5. Frequently Asked Questions (FAQ)

Q1: What is considered disposable income in Alberta?
A: Disposable income is gross pay minus mandatory deductions (income tax, CPP, EI). Voluntary deductions like RRSP contributions are not subtracted.

Q2: Are there any exemptions to garnishment in Alberta?
A: Certain payments like child support take priority, and some social benefits are exempt from garnishment.

Q3: Can multiple garnishments exceed 50%?
A: No, the total of all garnishments cannot exceed 50% of disposable income in Alberta.

Q4: How often should garnishments be recalculated?
A: Garnishments should be recalculated with each pay period as disposable income may vary.

Q5: What if the employee's pay varies?
A: The 50% limit applies to each pay period's actual disposable income, not an average.