The Prime Minister announced yesterday in Congress that increasing the Social Security tax on non-cash salary benefits will be postponed by three months. Even though the delay will not solve the eventual problem (the measure will eventually hurt job creation), it is a relief for businesses.
The government decided quickly to implement this measure in December without advising social agents that they were doing something that is inconsistent with Spanish labor law, which was characteristic of this regime's habit of acting without consulting with external parties so that people can have time to prepare and make necessary changes to day to day operations. Now, companies will have the time they need to trim payroll, but they will not be able to avoid real increases to labor costs.
