According to Monika Zaręba, an expert of Employers of Poland, growth in graduates’ employment may slow down because the government has rejected the proposal to give employers who have hired an unemployed person under thirty a twelve-month exemption from contributions to the Labour Fund and the Fund of Guaranteed Employee Benefits.
Monika Zaręba points out that the problems with putting knowledge into practice are often emphasized in debates on promoting employment of young people. During the economic slowdown entering the job market and gaining professional experience pose a challenge to a graduate mainly due to costs an employer needs to incur in relation to hiring young employees. For micro and small enterprises those problematic costs are those of training young employees for a job that may take a few months. Therefore, Zaręba believes the proposed exemption could help remove the barriers in hiring graduates with no or little professional experience.
The Minister of Finance opposed such a solution and explained that he feared a decrease in Labour Fund and Fund of Guaranteed Employee Benefits income. The Minister of Labour and Social Policy indicated sources of financing for the solution but it did not help the case.
The bill provides for a similar support instrument for employers. As part of an agreement with a starost an employer would be exempt from social security contributions for an employee under thirty directed by an employment agency. The exemption would be given for a period of up to six months and in the amount stipulated in the agreement but not exceeding half of the amount of the minimum wage. This kind of solutions, financial instruments supporting job mobility, cheap loans for creating new work places or for setting up a business activity can help make 2014 the year of the young on the job market – as announced by the Minister of Labour and Social Policy.
The article isa also available in Polish at http://www.pracodawcyrp.pl/stanowiska/art,5668,minister-finansow-zablokowal-ulgi-dla-pracodawcow.html