GKI: how companies protect themselves against cost increases due to mandatory wage increases?
The corporate survey of the GKI Economic Research Co. in February interviewed the companies how they avoid cost increases caused by the minimum wage increase.
In terms of an average company, the raising of norms is the “most popular” technique, to mitigate rising costs caused by the mandatory wage increases. Almost every third company raised the norm. This is not surprising since it is the easiest way to avoid the decline of the employees’ working hours (so the total output) will not be reduced, and simultaneously, the employer can comply with the statutory obligations. A quarter of companies trying to ease the burden by using temporary workers. In addition, 14-19 percent of the companies to reduce the official working hours (the number of gray employers will increase), or classify employees to another job or decreases the cafeteria and lay off people.
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