1a): Employees share to the social/national insurance
Description:
The employees share to the social/national insurance depends on the hours worked
(the less the weekly hours worked, the less the percentage of the NI)
Goals:
1. Incentive for employees to work less hours a week and therefore
2. Incentive for employers to increase the number of employees
3. Increase of the labour force participation
Conflicts:
1. Disadvantage for research-intensive companies
2. Individual wish to maximize the income
Problems:
1. Proof and documentation of the hours worked
2. Exception for research-intensive companies and non-profit organisations
1b): Employers share to the social/national insurance
Description:
The employers share to the social/national insurance depends on the average turnover for each employee (the less the turnover, the less the percentage of the NI)
Goals:
1. Incentive to increase of the number of employed (by reducing the hours worked)
2. Increase of the competitiveness of labour intensive companies
3. Increase of the labour force participation
Conflicts:
1. Reducing the incentives to increase the labour productivity and therefore
2. indirect subsidiaries for unproductive companies
Problems:
1. Possibility to manipulate the company figures
2. Exceptions for banks, insurances, and capital companies?