Estonian employers: Lowering of social tax minimum would help create part-time jobs

Employees at work. Photo is illustrative. (Postimees/Scanpix)
11/7/2016 5:21 PM
Source: BNS
Category: Business

Lowering or abolishing the social tax minimum requirement would help find part-time workers in low pay sectors such as retail trade, mass catering and real estate management, the head of the Estonian Employers' Confederation (ETTK) says.

Minister of Health and Labour Jevgeni Ossinovski's proposal to consider lowering the social tax minimum requirement for employers is a good proposal and echoes the suggestions made more than once by employers themselves, ETTK Chairman Toomas Tamsar told BNS.

"For many employers, hiring a part-time worker doesn't make sense today because it will cost them more than a full-time worker. Because of that, we have people who cannot or do not wish to work full time but no part-time jobs suitable for them," he said.

Abolishing or substantially lowering the social tax minimum requirement would open the opportunity for part-time work in sectors like retail trade, catering, real estate management and other sectors where the pay is low but which at the same time could employ people who lack or have few skills in demand on the labor market, Tamsar said.

In Ossinovski's opinion, consideration should be given to lowering the social tax minimum requirement for employers after an analysis of the step's impact on the budget of the government sector.

Both the elimination of the requirement and the lowering of the monthly tax rate can be assumed to have a significant social impact primarily on employment, the minister said in his proposals to the government.

Editor: Aili Vahtla

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