In Prince Edward Island (PEI), the court determines the portion of wages exempt from garnishment based on a predefined exemption amount for each “item of need.” These items include food, clothing, living accommodations, fuel and utilities, household and personal items, and health care services. The garnishment order will specify the exempted amount accordingly.
As of May 11, 2024, the PEI Garnishee Act (Garnishee Regulation EC84/23) has been amended, resulting in the following changes to the maximum monthly exemptions:
- From $511 to $537 for each adult (clause a)
- From $388 to $407 for each dependant (clause b)
- From $293 to $309 for each dependant (clause c)
- $40 for communications in the judgment debtor’s household, or $60 if there are more than two persons in the household (addition after clause e)
- From $150 to $165 per person (clause f)
Employers should note that they may modify the maximum monthly exemption under certain circumstances:
- If a judgment debtor resides in housing where one or more basic needs are provided or
- If a dependent child of the judgment debtor does not ordinarily reside with the judgment debtor for each day of a month.
In such cases, the maximum monthly exemption is adjusted using the following calculation:
(MME ÷ 30 days) x D
Where:
- MME is the Maximum Monthly Exemption.
- D is the number of days in a month that the dependent child ordinarily resides with the judgment debtor.
More details are available here (page 217).