|  | General:
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Employment Cost Reduced |
|
|
|
| |
|
Example: A Company with an annual Wage Bill of €1,000,000 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
Increased |
Net Cost of |
Reduced |
Tax |
Tax |
Total Cost of |
|
|
| |
|
|
By |
Employment |
By |
Rate |
Paid |
Employment |
|
|
| |
|
|
|
A |
Percentage |
|
B |
A+B |
|
|
| |
|
Before Agreement |
|
1,000,000 |
Points |
13.0% |
130,000 |
1,130,000 |
|
|
| |
|
1st Year |
+ 2% = |
1,020,000 |
2.2 = |
10.8% |
110,160 |
1,130,160 |
|
|
| |
|
2nd Year |
+ 2% = |
1,040,400 |
2.2 = |
8.6% |
89,474 |
1,129,874 |
|
|
| |
|
3rd Year |
+ 2% = |
1,061,208 |
2.2 = |
6.4% |
67,917 |
1,129,125 |
|
|
| |
|
4th Year |
+ 2% = |
1,082,432 |
2.2 = |
4.2% |
45,462 |
1,127,894 |
|
|
| |
|
5th Year |
+ 2% = |
1,104,081 |
2.2 = |
2.0% |
22,082 |
1,126,162 |
|
|
| |
|
6th Year |
+ 2% = |
1,126,162 |
2.2 = |
-0.2% |
(-2.252) |
1,123,910 |
|
|
| |
|
|
Total cost of Employment before the Agreement = |
1,130,000 |
|
|
| |
|
|
|
Total cost of Employment six years later = |
1,123,910 |
|
|
| |
|
|
|
|
|
The Saving = |
6,090 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
