The Verkhovna Rada registered a bill that proposes to free employers from paying a single social contribution for employees who have not reached the age of 27.
The legislative initiative was filed on October 9 by the Kharkov people’s deputy Aleksey Kucher. The draft law «On Amendments to the Tax Code of Ukraine (regarding the promotion of the employment of students and young professionals, the detailing of the employment market and incomes of the population, and the suspension of the outflow of Ukrainian specialists abroad) was presented to the profile committee on 10 October.
The implementation of the bill should solve the problem of employing young professionals without work experience and their outflow abroad due to the lack of decent work in Ukraine.
«Now, given the size of the minimum wage, the employer must pay at his own expense a single social contribution in the amount of 918.06 hryvnias, as well as withhold from the employee income tax in the amount of 751.14 hryvnias and a military fee of 62.60 hryvnias «, — said in an explanatory note.
At the moment, employers give preference to more experienced employees, and young specialists, in turn, are arranged informally to avoid paying taxes.
According to the expert, the bill needs to be finalized, but its appearance can positively reflect on the labor market.
«The exemption of the employer from paying taxes to the Payroll Fund will stimulate inviting specialists on one condition: that the specialists have a certain level of competence and do not require additional training. The bill is interesting, but I would also add incentives, as in the whole world, for example, in the United States, when small businesses are given grants for the further training of specialists. Especially the young ones whom they employ, because on average they need to spend from 30 thousand hryvnias on a specialist to train him, «- rokommentiroval KHARKIV Today legislative initiative of the president of «Association of Private Employers» Alexander Chumak.
The document says that a similar model of interaction between the employer and young specialists has already been applied in Poland, where taxes on personal incomes for employees who are under 26 years old were canceled.
The adoption of the bill should stimulate both Ukrainians and foreigners to stay at work in Ukraine, to minimize corruption risks in legal relations with regulatory authorities.