Wage Arrestment Scotland


This article provides a comprehensive overview of wage arrestment in Scotland, including its legal basis, process, exemptions, consequences, and alternatives.

In Scotland, wage arrestment is a legal process that allows creditors to recover debts owed by individuals directly from their earnings. It is an important tool used to enforce payment obligations and ensure that creditors receive the money they are owed.

This article provides a comprehensive overview of wage arrestment in Scotland, including its legal basis, process, exemptions, consequences, and alternatives.

Understanding the Legal Basis of Wage Arrestment

Wage arrestment is authorized under the law of Scotland, primarily governed by the Debtors (Scotland) Act 1987. This legislation grants creditors the right to recover debts by instructing the individual’s employer to make deductions from their wages.

The Process of Wage Arrestment in Scotland

Notification to Employer

The wage arrestment process begins with the creditor obtaining a decree from the court. Once the decree is granted, the creditor serves an earnings arrestment order to the individual’s employer, directing them to deduct a portion of the employee’s wages.

Protected Earnings and Deduction Tables

In Scotland, individuals are entitled to a certain level of income protection known as “protected earnings.” These protected earnings are determined based on the employee’s net income and the number of individuals financially dependent on them. Deduction tables are used to calculate the amount that can be deducted from the employee’s wages.

Calculation of Wage Arrestment

The amount deducted from an employee’s wages is calculated based on a sliding scale, with higher rates applied to higher earnings. The deduction tables take into account factors such as the frequency of payment (e.g., weekly or monthly) and the number of dependents.

Duration and Frequency of Wage Arrestment

Wage arrestments in Scotland can be continuous or periodic. Continuous wage arrestments remain in effect until the debt is fully repaid, while periodic arrestments are limited to a specific time period. The frequency of arrestments depends on the court order and the outstanding debt.

Exemptions and Limits of Wage Arrestment

Minimum and Maximum Deduction Rates

There are limits to the amount that can be deducted from an employee’s wages through wage arrestment. The minimum deduction rate ensures that individuals have a certain level of income to cover essential living expenses. The maximum deduction rate places a cap on the percentage of wages that can be taken, preventing excessive deductions.

Exempt Income and Priority Debts

Certain types of income are exempt from wage arrestment. These include social security benefits, student loans, and certain tax credits. Additionally, wage arrestment is subject to priority debts, such as child maintenance payments, which take precedence over other debts.

Consequences of Wage Arrestment

Financial Impact on Employees

Wage arrestment can have significant financial implications for employees. The deducted amount affects their disposable income, making it challenging to meet day-to-day living expenses. This can lead to increased financial stress and hardship.

Impact on Credit Rating

Wage arrestment may also impact an individual’s credit rating. The presence of wage arrestment on a credit report could make it difficult for them to access credit or obtain favorable lending terms in the future.

Dealing with Multiple Wage Arrestments

In cases where individuals face multiple wage arrestments, the cumulative effect can be overwhelming. Juggling multiple deductions can further restrict disposable income and make it harder to escape the cycle of debt.

Seeking Advice and Assistance

When faced with wage arrestment, individuals should seek advice and assistance to understand their rights and explore possible solutions.

Contacting Debt Advice Agencies

Debt advice agencies, such as Citizens Advice Scotland and StepChange Debt Charity, provide free and confidential guidance on managing debt and dealing with wage arrestment. They can help individuals negotiate repayment plans and explore alternative debt solutions.

Legal Representation and Advocacy

In certain cases, individuals may require legal representation to challenge the wage arrestment or seek modifications. Legal professionals specializing in debt and employment law can provide valuable support and advocacy.

Alternatives to Wage Arrestment

While wage arrestment is a common debt recovery method, there are alternatives worth considering.

Negotiating Repayment Plans

Individuals can engage directly with creditors to negotiate affordable repayment plans. This approach allows for more flexibility and may prevent the need for wage arrestment.

Debt Arrangement Scheme

The Debt Arrangement Scheme (DAS) is a government-backed debt management program in Scotland. It enables individuals to repay their debts in an affordable manner while protecting them from wage arrestment and other forms of enforcement action.

Sequestration (Bankruptcy)

Sequestration, commonly referred to as bankruptcy, is a formal insolvency process that individuals can consider as a last resort. It provides relief from unmanageable debts and protects individuals from wage arrestment, allowing them to make a fresh financial start.

Challenges and Criticisms of Wage Arrestment

While wage arrestment serves as a debt recovery tool, it is not without its challenges and criticisms.

Impact on Low-Income Workers

Wage arrestment can have a disproportionate impact on low-income workers who rely on every penny of their earnings for essential expenses. The deduction of wages can push them further into financial difficulty and perpetuate a cycle of poverty.

Potential for Exploitation

There are concerns about the potential for exploitation by certain creditors who may use wage arrestment as a means to extract excessive payments. It is important to ensure that wage arrestment is used responsibly and within the legal framework.


Wage arrestment in Scotland is a legal process designed to facilitate debt recovery. While it provides a mechanism for creditors to recover outstanding debts, it can have significant financial consequences for individuals. Seeking advice and exploring alternative solutions is crucial when faced with wage arrestment, ensuring individuals can navigate their way toward financial stability.

<strong>Maxine McCreadie</strong>

Maxine McCreadie

Maxine is an experienced writer, specialising in personal insolvency. With a wealth of experience in the finance industry, she has written extensively on the subject of Individual Voluntary Arrangements, Protected Trust Deed's, and various other debt solutions.