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May 22, 2022
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Payroll Subsidy Will Not Help Create Jobs

Payroll Subsidy Will Not Help Create Jobs

A few days ago, the Minister of Labor, announced that the government will subsidize up to 55% of the payroll of (mypes), as he explained, in order to preserve the of young people For this purpose, he indicated that S / 320 million will be injected.

The subsidy will be granted for a maximum of six months “per young person hired”. What impact will it have? Labor activists Ricardo Herrera, Germán Lora and Jorge Toyama, consulted by this newspaper, agreed to point out that it is not the solution to the problem of unemployment in this sector.

In this sense, they questioned that the subsidy be limited only to mypes. According to Herrera, “there are 3.5 million formal workers, of which 5% are on the payroll of micro and small companies.”

“The subsidy will be of limited impact. We are not focusing where it is needed”assured.

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For his part, Toyama said that these types of actions “will not be relevant or decisive” and will not contribute to the formalization of mypes.

Meanwhile, Lora, in addition to questioning the fact that medium and large companies are not included, indicated that “it is something temporary, when you should think about the future.”

PROPOSALS

Given this little impact that the Executive’s measure would have, the laborists considered writing down other measures that would help the sector.

In this regard, Lora pointed out that it is possible to bet on a temporary regime in which labor benefits are lower, there are fixed-term contracts and that allows companies to have more accessibility for hiring.

“The course that the government is taking now is wrong, because it is pointing towards a more rigid labor relationship”highlighted and recalled the proposal of the Ministry of Labor to modify the Labor Code that would generate more work overload.

On the other hand, Toyama considered that it is necessary to carry out a labor reform, but that it also includes the education and training of young people so that they can work in a company.

He even specified that a mechanism can be established through which the company is in charge of training the young worker, it can help him pay for a technical career and that is deducted in taxes. “If you put it on the payroll, you can establish that you pay less in Essalud”he added.

Herrera agreed that it can be supported through subsidies through social security.

“You also have to give young people an opportunity through temporary contracts, to encourage companies to call them. Otherwise, they will continue betting more on workers with more experience”he highlighted.

Data

  • The approval of the changes in the Labor Code would increase labor informality between 5 and 8 percentage points, according to Pablo Lavado, a professor at the Universidad del Pacífico.
  • Meanwhile, Miguel Jaramillo, a researcher at Grade, stated that a million people with temporary contracts could be left without work with the modifications proposed by Minister Betssy Chávez to the labor law.

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