Cyprus-Forum.com

[Svetlana]

Currently, employees pay 6.3% for Social Insurance;

Employers pay, gulp:

Social Insurance 6.3%
Social Cohesion Fund (?) 2%
Redundancy Fund 1.2%
Industrial Training Fund .5%
Holiday Fund 8%

The Government now propose to increase Employee's SI contributions by 2.5% (over the next five years). For the Employer, they propose a similar increase as well as an additional 2.55% contribution for the NHS, sometie after 2008!

This will disourage legal employemnt and encourage people to be employed 'off the record'.

Lana

[Christie]

Right.
And if they increase taxes it will discourage people to work at all

[jambo]

just like the UK ...everyone is working on the fiddle ..lol.lol..

[Niki]

One of the many reasons I gave up and sold up!

[cypezokyli]

employees should also have rights

[zoopigi man]

Currently, employees pay 6.3% for Social Insurance;

Employers pay, gulp:

Social Insurance 6.3%
Social Cohesion Fund (?) 2%
Redundancy Fund 1.2%
Industrial Training Fund .5%
Holiday Fund 8%

The Government now propose to increase Employee's SI contributions by 2.5% (over the next five years). For the Employer, they propose a similar increase as well as an additional 2.55% contribution for the NHS, sometie after 2008!

This will disourage legal employemnt and encourage people to be employed 'off the record'.

Lana

Streuth - even more than the UK. What happens when employers, instead of employing permanent staff, go for the self-employed. Who (if anyone) pays the employer contributions?

[michalis5354]

So the net wage will decrease If wages remain as they are! Also another thing is that employers will offer lower wage to counter balance the increase in SI contributions. At the end of the day employers will have nothing to gain or loose. So the burden will be again on the employee!