The territorial government recently implemented amendments to the monthly exemption amounts under the territorial <i>Exemptions Act</i>.
The Act establishes the rules for determining the amount of an employee's salary or wages that are exempt from garnishment.
The territory revised the Act, effetive June 1, 2006, to move the exemptions from the Act to regulations under the legislation.
Under the new regulations, which also took effect June 1, 2006, the following amounts, whichever is higher, of an employee's wages or salary are exempt from garnishment each month:
$1,500, plus $300 per month per dependant, or 70% of the employee's net pay (i.e., after deductions for CPP, EI and income tax), up to $3,500 per month, plus $300 per month for each dependant.
Previously, the exemptions were $400 per month for married persons; $400 plus $80 per month for each dependent child, for married persons with children; $300 plus $80 per month for each dependent child, for employees who are widowed, unmarried mothers or divorced; and $300 a month for a single person.
The Act also enables a debtor to apply to the Nunavut Court of Justice for a higher exemption amount. The court may increase the exemption, depending on the debtor's (or the debtor's family's) circumstances.
The territory revised the Act, effetive June 1, 2006, to move the exemptions from the Act to regulations under the legislation.
Under the new regulations, which also took effect June 1, 2006, the following amounts, whichever is higher, of an employee's wages or salary are exempt from garnishment each month:
$1,500, plus $300 per month per dependant, or 70% of the employee's net pay (i.e., after deductions for CPP, EI and income tax), up to $3,500 per month, plus $300 per month for each dependant.
Previously, the exemptions were $400 per month for married persons; $400 plus $80 per month for each dependent child, for married persons with children; $300 plus $80 per month for each dependent child, for employees who are widowed, unmarried mothers or divorced; and $300 a month for a single person.
The Act also enables a debtor to apply to the Nunavut Court of Justice for a higher exemption amount. The court may increase the exemption, depending on the debtor's (or the debtor's family's) circumstances.
