Scotland’s Insolvency Service, Accountant in Bankruptcy, are expected to lay regulations in the Scottish Parliament during November 2021 to increase the current rates to the Diligence against Earnings tables. 

The Diligence against Earnings tables are used to calculate the amount to be deducted from an employee’s pay if they are subject to an earnings arrestment or conjoined order. There are three tables available according to pay frequency; weekly, monthly and daily.

Current Weekly Calculation 

The current tables, for example, for a weekly paid employee apply to weekly earnings of more than £122.28 and the deduction due is £4 or 19% whichever is the greater.

The current tables go up to maximum earnings of more than £664.50 and the deduction due is £111.92 plus 50% of earnings over the threshold of £664.50.

New Proposed Weekly Rates

The new proposed increase to the weekly tables starts where weekly earnings are more than £130.73 and the deduction due would be £4 or 19% whichever is the greater.

The new maximum earnings for a weekly paid employee would rise from £664.50 to £710.42. The deduction would be £119.66 plus 50% of earnings over the threshold of £710.42. 

When will they apply from?

Once approved by the Scottish Parliament, the new rates will apply to any payment for a new or existing order from 6th April 2022.

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