In Sweden we recently had an increase of the general payroll tax for adolescences, with the main reason to stimulate unemployment rates. As an example, employers earlier were obliged a payroll tax of 15,49% if employees were born later than 1990, this number today is corresponding to 25,46% – a rise in over 60%.
My question/thought is regarding how this is affects the Swedish startup-climate. Can we consider this an advantage, in terms of seeing a rise in new startups due to fewer employers hiring youngsters- forcing them to try business on their own? Or is this negative – in the aspect that it’s becoming more expensive for employers to hire. I’ve been involved with a few smaller organizations that was solely employing people under the age of 26. This I think, not based on any statistics, is the case of a lot of younger employers. Thoughts?
//Isac
Hi Isaac – I am sorry I am confused and completely unaware of the Swedish laws. Do you mean that the new regulation asks the employers to pay more in case there are hiring young people? (born after 1990)
Pingback: grandpashabet