Friday, March 20, 2015

“Abolished youth discount hitting hard” – Helsingborgs Dagblad

Eva Ostling, President of Visita, warns of the consequences. On the tourism and travel fair TUR, which begins in Gothenburg today, she presents figures that the organization has calculated the basis of SCB’s wage statistics.

The government has announced that this summer would return the employer contributions for young people up to approximately the level prior to 2007, about 32 percent. Today it stands at 15.49 percent.

– It represents a cost shock for companies with many young employees we have in our industry, says Eva Ostling.

The hotel and restaurant is the nutrient with the highest percentage of payroll, 30 percent, goes to young people under 26 years. Second is the construction industry, where over 15 percent of the wage bill goes to the young, and trade with 14.4 percent.

– Since payroll taxes were lowered in 2007 have 10,000 more young people gained employment in our industry. All these jobs do not disappear as the industry expanded, but around 5000 full time jobs will be lost if the employer’s contribution is doubled, says Ostling.

For the hospitality industry, incrementing an increased cost of nearly 1.5 billion per year at an average monthly salary of 20,000 crowns, according Visita.

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