Slovakia: the Parliament is debating on the creation of a low-wage bonus

The Slovak lower parliamentary house is currently debating a state-funded benefit proposal designed to stimulate employment within the low-paid sector. If passed, the draft amendment to Act No. 595/ 2003 Coll. on Income Tax would allow low-income earners to claim an annual bonus in arrears, in the form of an income tax return lump-sum, or 'negative tax' from March 2010. (Ref. 080906)
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Targeted audience. Currently
dubbed ‘employee bonus’, the proposed benefit would boost low-paid incomes at,
or lower, than the minimum wage level by approximately Sk2,500 a year (just
under EUR 83). The Finance Ministry, from which the proposal originates, has
expressed hopes that the bonus will motivate Slovakia’s long-term unemployed,
who now represents 54% of the total jobless. The ministry has also suggested
that the bonus could be used as an incentive to motivate those taking maternity
and

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