--- title: Decreasing tax rate may lead to labor dispute date: 2012-12-17T09:00:48Z modified: 2012-12-17T09:00:48Z permalink: "https://grow.ee/muutuv-netopalk-2013/" type: post status: publish excerpt: "" wpid: 1758 timestamp: 2012-12-17T09:00:48Z tags: - Accounting --- As of 01.01.2013. unemployment insurance contribution rates will decrease, which will also change the amount of wages paid. The new employer's unemployment insurance contribution rate is 1% and the insured person's (employee's) unemployment insurance contribution rate is 2%. Thus, the December salary paid at the beginning of the year should please the salary recipient with a larger amount and the employer with a lower cost. However, confusion may arise for employers who have agreed with employees on the net amount of wages, or "the amount of wages to be paid". In recent years, we have only experienced rising unemployment insurance contribution rates, which is why maintaining the agreed net wage was positive for the employee and fully in accordance with the law. However, as the tax burden decreases, the same net amount of wages will actually become smaller, which is generally not permitted without the agreement of the parties. The legislation stipulates conditions under which a unilateral reduction in wages is permitted, but even then the prescribed procedures must be followed. When an error becomes apparent, you can usually count on the understanding attitude of the employees and correcting the error will be easy. However, any wage dispute can reach the labor dispute committee if various circumstances coincide. A decision made to the detriment of the employer due to an unlawful reduction in wages probably does not surprise anyone. If in doubt, now is the right time to communicate with your accountant or accounting service provider to avoid tensions arising from the tax reduction. In fact, both parties should benefit from the tax change. It will also be easier for accounting to immediately reflect payroll correctly, without making significant adjustments.