Wage fund contribution: 0.25%

Employers will be required to pay a contribution of 0.25% of the total gross monthly wage fund each month as of January 1, 2007 in order to set up a wage guarantee fund, according to law draft devised by the Labour Ministry. At the same time, the contribution companies must make to the unemployment insurance fund will go down by 0.25%. The draft stipulates that depending on the necessary resources for covering the guarantee fund, the contribution may be modified through the social security budget. This fund, which will be managed by the National Employment Agency, will be used to pay wages based on individual and collective employment contracts in case a company becomes insolvent. The new draft is receiving mixed reactions from business people, who appreciate that no additional fiscal obligations were introduced but at the same time have criticised the authorities for not lowering work force taxation, which they say is currently excessive. ZF