Wages of managerial employees

Dear PAO,

I am currently a manager of a fast food chain in Metro Manila. Three years ago, I obtained a loan from a BANK TO fiNANCE THE MEDIcal expenses of my ailing mother. Unfortunately, my loan fell due; I wasn’t able to pay because of the high interest rates. The bank fiLED A CASE AGAINST ME FOR collection and garnishment of my payroll account with my employer. Can I validly object against the legal step taken by the bank?

Lou

Dear Lou,

To answer your question, we shall refer to Article 1708 of the New Civil Code which reads as follows:

“ART. 1708. The laborer’s wage shall not be subject to execution or attachment, except for debts incurred for food, shelter, clothing and medical attendance. xxx”

Applying the said law in your situation, the bank can validly sue you for collection and garnishment of your payroll account. The amount you loaned is included among the exceptions provided for under the law and will fall under the debts incurred for medical attendance. Moreover, in the case of Gaa vs. Court of Appeals (GR L-44169, Dec. 3, 1985), the Court ratiocinated through Associate Justice Lino Patajo that:

“Article 1708 used the word wages and not salary in relation to ‘laborer’ when it declared what are to be exempted from attachment and execution. The term ‘wages’ as distinguished from ‘salary’, applies to the compensation for manual labor, skilled or unskilled, paid at stated times, and measured by the day, week, month, or season, while ‘salary’ denotes a higher degree of employment, or a superior grade of services, and implies a position of office: by contrast, the term ‘wages’ indicates considerable pay for a lower and less responsible character of employment, while ‘salary’ is suggestive of a larger and more important service.”

In view of the said provision and jurisprudence, your salary as a managerial employee is not exempt from garnishment.

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.