BUSINESS IN SHORT

Government to cut payroll taxes

LOW-INCOME employees could see a reduction in their payroll taxes, which could increase their net salary and help create new jobs. This is the plan presented by the Robert Fico government on August 21.

LOW-INCOME employees could see a reduction in their payroll taxes, which could increase their net salary and help create new jobs. This is the plan presented by the Robert Fico government on August 21.

“There is a proposal by the labour minister which talks about 2.5-percent increase in the minimum wage,” said Fico, as quoted by the TASR newswire.

Neither Fico nor the cabinet members specified how the reduction should work. Fico added that the government might discuss the proposal in September, TASR wrote.

The proposal to reduce payroll taxes might also help the long-term unemployed to find work. The labour offices registered 212,476 long-term jobless in July, the Sme daily wrote.

One of the options for reducing the payroll taxes of low-income employees is to introduce the payroll-tax bonus, through which the state would subsidise part of the payroll taxes paid by the employees. The government might also set a cap for salaries eligible for payroll reduction. If either of these options work, the net salary of low-income employees should increase, Sme wrote.

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