aggregate demand by providing counter-cyclical spending during economic downturns Not possible to quantify Some improvement of playing field between employment and contract forms with corresponding effects on competition and factor allocation Partial de-segmentation of Not possible to quantify labour market by incentivising the wider use of standard employment Higher taxable basis if the Not possible to quantify adjustments in social security contributions steer a movement from forms of employment which have a simplified taxation system to standard employment and more highly taxed employment contracts Not possible to quantify Possibly some reduction of the expenditure on last resort safety nets. Partial removal of obstacles that Not possible to quantify may discourage employees from taking on the risks associated with improving factor allocation II. Overview of costs Preferred option – Citizens/Consumers Businesses Administrations One-off Recurrent One-off Recurrent One-off Recurrent None Limited decrease None Possible Possible None in disposable financial increase of income for a more burden to labour cost sizeable group introduce (previously uncovered and for reforms. whom the risks do Formal not materialise) Direct costs – coverage through contributions, taxes or lower wages in the case of NSE if employers pass on the cost of their contributions
aggregate demand by providing counter-cyclical spending during economic downturns Some improvement of playing field between employment and contract forms with corresponding effects on competition and factor allocation Not possible to quantify Partial de-segmentation of labour market by incentivising the wider use of standard employment Not possible to quantify Higher taxable basis if the adjustments in social security contributions steer a movement from forms of employment which have a simplified taxation system to standard employment and more highly taxed employment contracts Not possible to quantify Possibly some reduction of the expenditure on last resort safety nets. Not possible to quantify Partial removal of obstacles that may discourage employees from taking on the risks associated with improving factor allocation Not possible to quantify II. Overview of costs – Preferred option Citizens/Consumers Businesses Administrations One-off Recurrent One-off Recurrent One-off Recurrent Formal coverage Direct costs None Limited decrease in disposable income for a more sizeable group (previously uncovered and for whom the risks do not materialise) – through contributions, taxes or lower wages in the case of NSE if employers pass on the cost of their contributions None Possible increase of labour cost Possible financial burden to introduce reforms. None
2954331_EN_impact_assessment_part1_v7.docx