Question

employees in Korea, all employers must enroll their employees in social es such as national pension, health insurance, and employment insurance. As ow, employers and employees are required to equally share the cost 2. W hen hiring i shown in the table bel burd en of the contributions according to the relevant laws. (9 points) Employers 45% 3.23% 0.65% Employees 45% 3.23% 0.65% National Pension Health Insurance Employment Insurance e) What effect does the labor tax have on employment? (1 point)

Answer 1

Ans) Over the years we have seen an upward trend in employment, thus revolutionary changes in taxes. Different countries have adopted different sorts of taxes to deal with the issues prevailing in their country. Labor tax can be defined as the amount of taxes and mandatory contributions on labor paid by the business. We have been able to see a growing costs of labor, and thus an increasing trend in labor taxes.

Now the effect that such a tax may have on employment, is diverse having different types of effect. This is another form of tax which cuts down on personal savings, shall decrease the level of amounts at their disposal. Thus an increase in the percentage of this tax may have a negative effect on employment and the employer since a contribution from both the sides is made.