Employers Evade Minimum Wage Laws

  • 22 Jun 2017 8:14 AM
Employers Evade Minimum Wage Laws
Employers faced with rising wage costs have found a way to circumvent legal obligations by employing more part-time people, Világgazdaság writes.

The number of people in part-time employment rose 4.6% to 301,000 in the first quarter. Part of the increase was probably fictitous as employers regrouped staff to avoid their legal obligation to fully cover costs.

Economists warned that mainly smaller companies or sectors with low-profit margins will find it difficult to cover the 15 and 25% increase in minimum wage even as the social contribution tax was cut 5 percentage points.

Employees working “part-time” receive a part of their remuneration “in their pockets”, which increases the black economy.

Source: Hungary Around the Clock

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