Spectator on facebook

Spectator on facebook

Payroll tax incentives have yet to create many jobs

THE LABOUR Ministry’s expectations that firms will hire long-term unemployed people thanks to payroll taxes relief has not materialised in first nine months since the law kicked in.

THE LABOUR Ministry’s expectations that firms will hire long-term unemployed people thanks to payroll taxes relief has not materialised in first nine months since the law kicked in.

The firm which gives a work to person who has been registered in the Labour Office for at least one year may apply for payroll taxes relief paying 1.05 percent of his or her gross income instead of 35.2 percent. Just 2,500 firms have used this possibility in nine months hiring almost 6,000 people, Sme daily wrote.

The government expected that around 15,000 long-term unemployed will get job in the first year.

“It is not going to happened for sure,” head of The Federation of Employers’ Unions (AZZZ) Rastislav Machunka said, as quoted by Sme, adding that he stills does not consider 6,000 hired people as a failure.

Moreover, besides payroll tax relief, firms have tapping subsidies meant to encourage the hiring of young people, which has led to the creation of 12,000 jobs. The result of lower payroll taxes project should be evaluated after at least one year of its effectiveness, according to Labour Ministry spokesman Michal Stuška.

Compiled by Spectator staff from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Letters can be checked at work – but is it legal?

The recent scandal surrounding the parliamentary office opening and checking the post of MPs has opened the issue of postal privacy – which also concerns emails or text messages – guaranteed by the law.

Andrej Danko, speaker of parliament

New investor to create 500 jobs in Nitra

A company following the Jaguar Land Rover carmaker to Nitra plans to create 500 new jobs and invest €17 million.

Tha Jaguar Land Rover draws also other investors to Nitra.

Blog: A line does not always form

A foreigners' real experience at the foreigners’ police department in Bratislava.

The foreigners’ police department in Petržalka

Coalition SNS seeks mandatory 13th salary

The business sector claims that such a step would lead to speculation and slow the growth of wages.