According to him, the calculation shows that, on average, people make a positive contribution to the public economy – i.e. pay more taxes than they receive social benefits – only if their gross income exceeds 2,500 euros per month.
A work-based residence permit can currently be granted if an immigrant earns at least 1,331 euros per month in a job not covered by a collective agreement or a full-time minimum wage job in a job covered by a collective agreement.
Jukka MattilaThe financial adviser of the Ministry of Finance told Helsingin Sanomat on Wednesday that public interpretations of the calculations are based on an “unfortunate misunderstanding”.
He told the paper that the calculation actually suggests that, on average, an employed person will have a net positive impact on the public finances if they earn just over €2,000 a month instead of €2,500.
The calculation, he also reminded, is not related to work-based immigration, as it was drawn up as part of the workforce reform to assess the benefits of employing the unemployed for municipalities. If the estimate were extended to the effects of work-related immigration on the public economy, it would also have to take into account indirect taxes paid by the employee, such as value added tax, and the costs of public services used by the employee. .
Earlier this month, the Ministry of Economy and Labor considered that the income limit for work-related immigrants should be set at 1,500 euros. The proposal is based on the assessment that people with a foreign background are typically so-called net payers if they earn more than 1,500 euros per month.
Mattila argued that the calculation has similar problems. It does not distinguish between labor-based immigrants and other immigrants and only takes into account taxes and direct income transfers paid by immigrants on their earnings.
He stressed that it is critical to look at the long-term economic impact of labor immigrants to answer questions such as whether they will stay in the country, whether their wages will increase over time and whether they will become dependent on Social Security benefits if made redundant.
According to Mattila, setting a single income criterion for a work-based residence permit on economic grounds is practically impossible due to the influence of variables such as age. He explained that those who move to the country at a younger age are more likely to have a positive impact on the public economy, as they can work longer before retiring.
Work-based immigration is one of the most controversial issues in the coalition negotiations between the coalition, Basic Finns, RKP and the Christian Democrats.
Basic Finns have also demanded restrictions on work-based immigration, but the Swedish People’s Party aims to increase both humanitarian and work-based immigration in order to remedy the labor shortage and promote economic growth.
The four parties will seek common ground this week on the most contentious issues, including immigration, before moving on to work on other issues.
Aleksi Teivainen – HT
Source: The Nordic Page
