Thursday, 13 September 2012

Portugal to increase employees' tax and lower employers', is Spain next?

Employees' Social Security up from 11% to 18%, and employers' down from 23.75 to 18% · Are there similar plans for Spain?
PORTUGAL (Agencies) Conservative Prime Minister Pedro Passos Coelho announced last week that Social Security payments are going up for employees while coming down for employers. This comes about because, he said, the decisions made by the European Central Bank recently 'are not enough' to guarantee the possibility of cleaning up the country's economy. At the same time, Passos announced several more cutback measures aimed at the same targets as those demanded in Portugal's rescue package of a year ago.In the meantime, the rest of the financial world is waiting for a decision on whether Spain will ask for a rescue, an announcement that in many opinions, will be delayed until after regional elections in the Basque Country and Galicia, scheduled for October 21.

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