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Germany Boosts Garnishment Exemption to €1,560 Starting 1 July

Debtors can shield more of their income by converting a Girokonto into a P-Konto before the thresholds take effect.

Ab dem 1. Juli gibt es neue Pfändungsfreigrenzen: Bei einer Pfändung von Einkommen auf der untersten Stufe gilt fortan ein Freibetrag von 1179,99 Euro.

Overview

  • Effective 1 July 2025, the basic non-garnishable monthly allowance rises to €1,559.99 (rounded to €1,560 on P-Kontos).
  • Dependent exemptions climb to €585.23 for the first underage dependent and €326.04 for each additional dependent up to five.
  • Debtors retain 30% of surplus income above the basic threshold without dependents, 50% with one dependent and an extra 10% per additional dependent up to a 90% cap.
  • Any net income exceeding €4,767 per month becomes fully subject to garnishment regardless of dependent status.
  • From 1 July 2025 employers and banks must apply the new thresholds, and debtors can secure the protections by converting a Girokonto into a free P-Konto.