New round of talks on ATA reform, possible ‘caps’ under discussion

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Negotiations continue today at the Labour Ministry on the future of ATA reform, with officials holding separate meetings with social partners in an effort to prepare for a joint session that could lead to a permanent agreement.

Despite limited progress during Thursday’s discussions, the Labour and Finance Ministers described their meetings with employer organisations and trade unions as “useful and productive.”

In a statement, the ministry confirmed that ATA reform talks are “ongoing,” with meetings scheduled throughout Friday aimed at reaching a lasting deal.

The transitional agreement currently in place, first signed in 2017 and renewed in 2023, will remain valid until a permanent framework for ATA reform is finalised.

According to government sources, discussions have centred on a proposal to modernise the system through four main pillars:

  1. Universal expansion of the ATA to cover all employees.
  2. Fairer distribution, prioritising low and middle-income earners.
  3. Activation conditions, to prevent economic slowdown.
  4. Safeguards, to avoid fuelling inflation.

Ideas on the table reportedly include the introduction of caps and ceilings- both on the level of inflation the scheme will cover and on high salaries eligible for ATA payments. One option considered is excluding ATA from income that exceeds a certain percentage above the median wage.

Proposals for tax relief on the extra amount employers would pay under a reformed scheme were also discussed.

The situation remains fluid, and further meetings are expected later today- first with employers and then with unions. A joint session may still take place either today or over the weekend.

Also read: President optimistic about ATA talks with unions
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