Salaries of public officials can be garnished or legally collected when ordered by the courts as payment for their debts, the Supreme Court (SC) said.

The SC stressed that there is no law that exempts the salaries of public officials from garnishment.

An exception exists for manual laborers, whose wages are protected to ensure they can still support their families, the SC said.

It 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, it said only up to four months’ worth of wages of manual laborers preceding the levy are exempt, and any amount beyond can still be collected to pay debts.

In a press briefer, the SC’s Office of the Spokesperson said the High Court clarified that public officials are held to stricter standards when it comes to their income and financial obligations due to “their constitutional role as custodians of public trust.”

“On the other hand, laborers, such as private employees, are subject to the terms of their employment contracts and labor laws, which offer protective measures for their wages and earnings, consistent with the State's constitutional mandate to afford full protection to labor,” the SC said.

In the case of public officials, their salaries are fixed by law and are not necessarily dependent on the number of hours worked or the specific tasks performed, it also said.

However, laborers particularly in the private sector are paid based on their employment contracts, which may include provisions for performance-based pay, hourly wages, or other variable considerations, it added.

The ruling was contained in a decision written by Associate Justice Samuel H. Gaerlan. The case was docketed in the SC as GR No. 274980 and the copy of the decision was posted last July 4 at the SC’s website – sc.judiciary.gov.ph.

The press briefer stated that the SC decision denied the petition filed by lawyer Fred L. Bagbagen, a Baguio City councilor, who challenged the 2019 and 2020 orders of garnishment of his salaries issued by the regional trial court (RTC).

His salaries then had been withheld by the Philippine Veterans Bank.

In 2014, Bagbagen was acquitted of the estafa case filed by a person from whom he owed P308,000. Despite his acquittal, the RTC ordered him to pay the money he owed with legal interest.

In 2023, the Court of Appeals (CA) affirmed the RTC rulings. The CA ruled that once a public official’s salary is deposited in their personal bank account, it is no longer considered government money.

Bagbagen elevated the issue before the SC. He reiterated his arguments that his salaries cannot be garnished since the funds were still considered government property until spent.

In resolving Bagbagen’s petition, the SC affirmed the CA ruling. It said that under Rule 39 of the Rules of Court, salaries --whether in the public or private sector -- can be garnished to settle debts.

Thus, the SC said that the CA correctly upheld the RTC orders on the garnishment of Bagbagen’s salaries.

“Accordingly, the Petition for Review on Certiorari is hereby denied. The Decision dated Aug. 18, 2023 and the Resolution dated April 15, 2024 of the Court of Appeals in CA-G.R. SP No. 164945 are hereby affirmed,” the SC ruled.