The same law as for everyone
There is no separate debt review for government employees. You apply to a debt counsellor registered with the National Credit Regulator, who assesses whether you are over-indebted and, if you are, proposes reduced payments to each creditor and has them made an order of court or of the National Consumer Tribunal. From then on you make one payment a month through a payment distribution agency.
The counsellor notifies your creditors and the credit bureaus. The Act does not require your employer to be told. Our general guide on debt review explains the process, the fees and how it ends.
What changes on your payslip
Many public servants repay loans and insurance by PERSAL deduction. When debt review restructures those loans, the deductions on your payslip can change too: some may stop, others may be reduced, and the single debt review payment may be arranged as a debit order or as a deduction. The payroll office processes those changes, so it may see that your deductions have been rearranged.
Check your payslip every month while the review is set up. If a creditor keeps deducting the old amount after the restructuring, tell your debt counsellor straight away with a copy of the payslip.
Your GEPF pension is protected
Under section 21 of the Government Employees Pension Law, your benefits in the Government Employees Pension Fund may not be ceded, pledged or transferred to a creditor. The exceptions are narrow: maintenance and divorce orders, amounts you owe the employer or the Fund itself, and a loan for which the Fund stands as guarantor, such as a housing loan.
Debt review does not change that. Your creditors are paid from your monthly debt review payment, not from your pension.
No new credit until it ends
Once you have applied for debt review, you may not enter into a new credit agreement other than a consolidation agreement until the review ends with a clearance certificate. A registered lender may not lend to you in the meantime, even one with a PERSAL deduction code, and an offer of a loan to someone under review is a warning sign.
Leaving debt review early is no longer possible on your own: it takes a court order. Before you apply, be sure it is the right step, and compare it with a payment arrangement with one or two creditors if only a few accounts are the problem.
Where it fits
Debt review suits public servants whose deductions and debit orders together leave too little to live on. If a creditor has already obtained a judgment and a garnishee order on your salary, discuss it with the counsellor too. When the review is over and you need credit again, our page on personal loans for government employees explains what to compare.