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The minimum wage and insurance thresholds by economic sector will remain frozen for next year. Employers’ organizations insist on this, reported epicenter.bg.
According to the company, it is not reasonable to administratively raise the minimum wage levels in the country in the conditions of economic collapse and increased unemployment caused by COVID-19.
Vasil Velev, president of the Bulgarian Industrial Capital Association, told Bloomberg TV that under these conditions it is more reasonable not to increase their current levels. He recalled that for this year the minimum wage has increased by 50 BGN to 610 BGN based on the expected growth of GDP of more than 3%, but due to the coronary crisis an economic fall of at least 7% is expected. means a difference from the forecast of 10 percentage points.
“Freezing the minimum wage level will allow the nearly 100,000 increased unemployed to find a job more easily, because they are mainly lower-skilled people,” Velev said. According to him, the late and wrong start of the “60/40” employment support plan is the reason why the number of unemployed in the country increased by 100,000 in April and May.
“We expect their new design from October, but these 100,000 people will not work again,” said the president of AIKB. According to him, the planned budget of the BGN 1 billion scheme has the capacity to save between 500 thousand and 700 thousand jobs, but the absorption of the subsidy is currently very slow.
Currently, employers’ organizations and trade unions are negotiating the mechanism to determine the minimum wage in the country, so that it is no longer administratively determined by the government, Vasil Velev said.
“The idea is to have a national minimum wage, after which the social partners will agree on the minimum wages by industry for three categories of personnel: low, medium and high qualification,” he said. At the moment, however, only criteria have been agreed, not specific levels, which means that this mechanism will not be applied next year.
Sofia, Bulgaria
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