The Ministry of Social Affairs and Employment has announced that the Limited-salary youth jobs rule will be temporarily continued in 2011. This rule lessens the labor costs for employers.
In particular, the rule provides that no premiums have to be paid by employers for employees under 23 years of age with a job where they earn less than half the statutory minimum wage. Those jobs falling under the rule are also exempted from income-based healthcare insurance contributions.
At the request of the Minister of Social Affairs and Employment, the effects of the Limited-salary youth jobs rule were examined. There are indications that the rule has a positive effect on employment opportunities in sectors where many young people work in part-time jobs.
The rule will be temporarily continued. A final decision on the rule will be made in the spring of 2011.