Coalition agrees on changes in terms of distraint to help low-income people

Changes in the terms of distraint will mainly help low-income groups of the population, said representatives of the governing coalition. On Wednesday, they approved a draft regulation changing the extent of salary deductions when carrying out distraint. In line with the new rules, salary levels and growth in the cost of living will be taken into account to a greater extent in the case of non-preferential claims. The changes will take effect as of January 1, 2022. Labour Minister Milan Krajniak (We Are Family) said that changes in the terms of distraint will apply to some half a million people. Justice Minister Maria Kolikova said that the legislation pushes up the income threshold that should not be subject to deductions. Finance Minister and OLaNO leader Igor Matovic claimed that it would result in a lower volume of loans provided by so-called non-banking entities.