Comment by iblacksand

I also have this question. If this is true, as you note, full deduction is only possible if the wage is constant. So would this also provide an incentive for employers not to give raises, as this 'resets the clock'.

The situation would be that employers want to keep employees for at least 5 years, but providing them with raises as an incentive to stay is also more expensive than it was previously.

Seems like a bit of a mess.