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BNS - In a bid to help bring more people to the labor market, the Estonian parliament on Thursday passed amendments to the Social Tax Act scrapping the principle whereby social tax has to be paid at least on the national minimum wage for each person employed.
The government-drafted bill adopted in the 101-seat chamber with 83 votes says that social tax has be paid on the amount actually paid to the employee.
This, authors of the bill said, will provide better preconditions for the creation of part-time jobs.
Currently employers must pay social tax on at least 4,350 kroons (EUR 278) of gross wage monthly for every employee.
The amendments also create the possibility to conduct summary calculation of social tax on persons employed in several part-time jobs.
Estimated to affect 41,900 people, the change is expected to open the way for the creation of 3,000 new part-time jobs. Additional social tax to be received as a result is estimated to reach 32 million kroons
The legislation takes effect from July 1.
(EUR 1 = EEK 15.65)
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