Youth Council Calls for Social Tax Reduction to Boost Employment Opportunities for Young People in Estonia
In a bold move to address the challenges faced by young people entering the workforce, the Youth Council of the Eastonian center has proposed a significant reduction in social taxes for individuals under 33 years of age. During a council meeting held on January 25, 2025, the council recommended lowering the social tax rate from 33% to 13% for young workers, aiming to make employment more accessible and flexible.
Dirtricy Long, Chair of the Center’s Youth Advice, emphasized the importance of early work experience.”The frist job gives you the possibility to develop responsibility, teamwork, and skills valued by future employers. Unfortunately, data shows that opportunities in Estonia are limited, as young people often lack incentives due to high labor costs.”
Currently, employers in Estonia pay a 33% social tax on all employees, which funds social protection services and healthcare.However, the Youth Council argues that reducing this rate for young people under 19 would not only ease their entry into the labor market but also contribute positively to national social security.
“The aim of the social charge is to ensure funding for people’s social and health expenses. Reducing the tax rate for young people is not just a political symbol but a practical step to address the challenges they face,” Long added.
The council’s proposal highlights the dual benefits of this policy. On one hand, it would encourage young people to gain valuable work experience early, reducing the risk of future unemployment. Conversely,it would increase the number of workers,generating additional tax revenue that could offset the impact of the reduced social tax rate.
Economic Challenges and Youth Employment
Estonia’s economic climate has been challenging, with a recent decline in economic growth. Many young people enter the workforce early to support their families, but high living costs and government policies have made this increasingly difficult. The council’s proposal aims to alleviate these pressures by making it easier for young people to work part-time or flexibly without burdening employers.Call for Broader Debate
The Youth Council is urging public authorities, political leaders, and the broader society to engage in a complete debate on this issue.They believe that reducing the social tax rate for young people is essential to fostering their welfare and ensuring their economic stability.
Key Points at a Glance
| Proposal | Current Rate | Proposed Rate | Target Group |
|———————————–|——————|——————-|————————|
| Social Tax Reduction | 33% | 13% | Individuals under 33 |
| Employer Contributions | 33% | 13% | Young workers under 19 |
| Expected Benefits | – | Increased employment, enhanced social security |
The council’s initiative seeks to create a more inclusive and supportive environment for young people, ensuring they have the resources and opportunities to thrive in Estonia’s labor market. As the debate unfolds, the proposal could mark a turning point in the contry’s approach to youth employment and economic policy.
