Profitable firms to foot jobless benefits for early retirees
The government wants profitable companies which decide to reduce their payroll by offering early retirement to workers to also foot the bill for the cost of their unemployment benefits, according to Labor Ministry sources.
Ministry officials are drafting a bill that will be presented to parliament that proposes to call on firms with high earnings to pay jobless benefits for their workers over 52 who are given early retirement.
Although the idea isn't new, the proposal will be worked in as an amendment to the Social Security Law.
The measure also comes on the heels of Telefónica's announcement that it will reduce 20 percent of its workforce after earning a record-breaking 10 billion euros last year.
In Catalonia, the government on Sunday announced that it will reduce taxes for people who earn 120,000 euros annually in the region, which is in the process of cutting social services.
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