On Minimum Wage or Pension? How to Respond to Bank Embargos

The Law of “Civil Procedure” does not permit that funds are taken in the form of embargoes from your bank if you are on the minimum pension or wage. The information for minimum wages (SMI) HERE

For those receiving 14 payments annually for either a pension of wage, the extra payment made twice a year may increase the amount going into your bank to above the “minimum wage” level. Administrations will likely take the full amount. This also by law is not permissible. The amount is due to being paid double in one month and not an increase in wages or pension.

The embargo will normally be seen on your bank account as a retention, normally held there for 10 or 20 days. The end date should be visible .

What can you do? Unfortunately neither you or your bank will be able to stop the embargoes Once the funds have been taken from the bank, approach the entity making the embargo (Court house, tax office or provincial recaudacion offices). Go to either of the latter with proof of your income, ID, few months bank statements and last tax declaration if applicable, and ask them to lift the embargo. This will normally take a few days taking weekends into account. Unfortunately you will have to repeat the process if there are further embargoes.

CAB is not advising that debts should not be met. They will have to be paid. This is to assist those who may be left with no funds to live on and pay bills. Arrangements can be made to pay in instalments or by leaving a small amount in the bank before the embargo is due. This will then be taken via the ‘EMBARGO PREVENTIVO’ or ‘EMBARGO EJECUTIVO’.

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What is an embargo and more information

UPDATE:

Minimum Wage January 1/2019 to date

2022. Minimum wage (SMI) 1000€.

2023. Minimus wage monthly 1080€

2025. Minimum wage monthly 1.184€

Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.