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The Deputy Prime Minister and Minister of Tourism, Mariana Nikolova, called an extraordinary meeting online.
Observations on 30% Increase in Wages for Frontline Employees in the Fight Against COVID-19
The minimum unemployment benefit will increase from 1 October from BGN 9 to BGN 12 per day. This change in the budget of the State Social Security was supported by the tripartite in an extraordinary meeting on Saturday, a month after the measure was announced by Prime Minister Boyko Borissov. This increase will affect about 30,000 people on average per month,
Again, starting on October 1, the period in which those with the shortest length of service receive unemployment benefits before losing their jobs will be extended for three months. Currently, with an experience of up to 3 years, unemployment benefits are received for only 4 months. Changes will take 7 months. However, the requirement of at least 1 year of continuous insurance to qualify for unemployment benefits remains. This change will affect between 13,000 and 15,000 people on average per month.
This will cost around BGN 90 million by the end of the year, provided the two measures are in place. The money will come from the Unemployment Fund, which was increased by BGN 1 billion in April.
The social partners also unanimously supported the changes in the Budget Law of the National Health Insurance Fund for 2020. Their objective is to allow, if not utilization of budgeted funds for this year that will be used for payments to hospital care providers during the previous period.
However, the ordinance on the salaries of civil service employees did not receive such support. While the government has already approved a 30% increase in the wages of frontline workers in the fight against the pandemic, the social partners should discuss changes to the ordinance on the wages of civil service employees. They must regulate the additional costs, because now the ordinance does not allow more than 20% increase.
It is anticipated that the increase in the basic monthly salaries of the employees in the respective administrations, by no more than 30 percent of the current amount, will take effect on August 1, 2020.
Employers’ organizations BICA and BIA do not support the changes to the ordinance, and CEIBG and SSE support in principle, giving a recommendation to complement the reasons and provide clear financial estimates from the petitioners. Unions – CITUB and LC “Support” support the project, but provide specific comments and suggestions.
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