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.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

We want a decent Slovakia, people chanted in squares

On the eve of the Velvet Revolution anniversary, people protested in the thousands, calling for a decent Slovakia.

Bratislava protest November 16, 2018

What we didn't know about our freedom

In 1989, we thought that once the job was done, we would only go out to the squares for Sunday walks.

November 1989 in Bratislava

The courage to fight for democracy

Authoritarian societies squander the possibilities of human achievement, of lives lived to their fullest, writes the US ambassador to Slovakia.

Illustrative stock photo

While France has Beaujolais Nouveau, Slovakia has St Catherine's wines

This warm summer with an early harvest was a blessing for young wine.

St Catherine's wines