How much will families pay after the domestic workers legal reform?

more rights for women workers more tax effort by the families who employ them, as well as by the workers themselves. Although the government provides bonuses to employers during the enactment of new regulations to reduce this increase in costs, households and workers themselves will need to contribute more to the public treasury.

Every family should assuming a greater or lesser increase in contributions, in proportion to the number of hours the domestic worker is laid off. It won’t be just them, because the workers themselves will see how the government withholds a small portion of their salary for future benefits. The manager has focused his bonuses on families and will currently apply 80% on new unemployment contributions and access to the Payroll Guarantee Fund (Fogasa). What they can add extra 20% reduction 45% in case of hiring a domestic worker for the first time or if it is a large family.

With reference to a family working 40 hours a week, which will be a normal full-time day for the remaining employees and paying the inter-occupational minimum wage (most common within the union), The monthly extra cost of the new standard is 24.4 Euros.. This would be a viable example of families with an internal employee who fully bears the cost of social contributions. On the other hand, if the domestic worker only comes for a few hours a day or a few specific days of the week, the additional cost for a 20-hour working week would be 12.2 Euros per month.

According to sources consulted from a group of professional managers, a common practice when hiring domestic workers is for employers to fully bear the cost of social contributions. In other words, the additional 24.4 euros implied by the new rule is paid directly by the family, because so you can do it directly by wire transfer or cash and does not have to write a payslip.

However, if the employer decides to distribute the contributions, as any company does with its employees, the distribution of the extra cost will be more even among them. As workers will see how they make discounts €12.2 payrolls and working families will pay an additional 12.1 euros per month to pay for unemployment benefits; always reference a 40 hour work week and a salary from SMI.

The result of these calculations takes into account the 80% premium provided by the Government for the employer. It is a significant amount undertaken by the state.because if not implemented, the new taxes will mean an additional contribution. 60 Euros for families, in the case of a 40-hour workday. Or 25.6 Euros in case of a half day.

Discounts for first hire

The government maintained an existing bonus network and expanded it so that the increase in required contributions would not cause some families to decide to break the law and force domestic workers to work ‘black’. After the new norm 20% bonus retained about common situations for families hiring a domestic worker for the first time. In the case of a large family, this can be extended up to 45%.

One change that will force families to recalculate their budgets for domestic workers is the entry into force of the Intergenerational Equality Mechanism (MEI) from 1 January 2023. It’s a ‘mini piggy bank’ pensions It was created by the Government, which will come into force from next year and will oblige all employers to pay an ‘extra’ social contribution, whether from an industrial company, for example services such as wage earners. In the case of domestic workers, the employer must accept a ‘plus’. 5.8 euros per month, in the case of a 40-hour working week and a gross salary of 1,000 euros (on 14 payments). In this case, the worker has to pay on his own behalf. €1.2 more One month for Social Security.