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Press watch: ‘Treasury weighs German “mini jobs” scheme’

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‘Treasury ministers are considering the introduction of German-style “mini jobs”, which exempt workers from tax and national insurance, as part of a swathe of labour reforms to reboot the economy.

‘The flexible contract system introduced in Germany a decade ago allows employees to earn up to €400 (£314) a month tax free, while their employers pay an easy-to administer flat rate of wage taxes, insurance and pension contributions. Designed to bring the long-time unemployed back into the labour force, it has been hailed as part of the country’s “job miracle”, helping to increase employment by 1m in its first four years.

‘One ally of George Osborne, the chancellor, said the idea was being given serious consideration …’

Financial Times, 20 August 2012