BICA Says Hike in Social Contributions Will Benefit Grey Economy
A potential sharp increase in social security contributions will push even more firms into the grey economy, the Association of Industrial Capital in Bulgaria (BICA) has said.
The lobby group’s position was unveiled on Sunday in response to an analysis by the National Social Security Institute (NSSI) which had suggested to introduce an additional contribution equivalent to 7.7% of salary to bridge a gap in the NSSI’s finances.
The BICA said in a statement that while the state-run NSSI has not yet formally proposed to hike social security contributions paid by employers and employees, the industrial association believes that it should make its position clear and draw attention to the potential negative impact of introducing additional social security payments on the labour market and the competitiveness of Bulgarian companies.
The association also highlighted that that raising contributions at the suggested rate will be a pro-crisis step that would ultimately result in job losses and even fewer inflow of funds into the NSSI.
To avoid that, the political parties and coalitions preparing to run in October snap election should state in their programs whether they support or reject a sharp increase in social security contributions, BICA said.
According to BICA, reserves for boosting NSSI’s finances could be sought in reconsidering early retirement options for some employment categories.
- » Daily Mail: Thomas Cook Says Bulgaria, Cuba Emerge as ‘New Hotspots' for British Tourists
- » Bulgaria, Russia to Look into Options for the Future of Belene NPP Project
- » Bulgaria’s Gross Foreign Debt Dips 1.3% Y/Y in May 2016
- » Bulgaria’s Business Climate Worsens in July – NSI Survey
- » Bulgaria Appoints New Deputy Finance Minister
- » Trips of Bulgarians Abroad Rise 21% Y/Y in June
Will Company /Business owners GIVE THEIR STAFF A LIVING WAGE IF Bulgaria goes into the Euro ?
The cost of living will rise greatly the owners and bosses have looked after themselves very well have nice homes ,cars and education at private schools for their children ,They can now afford to live in Europe to european standards ,but their workforces are well below that level.
Any contributions would not affect the owners but reduce the wages of the workforce making them worse off .
A very large number working people could not survive in the EURO,
The money Bulgaria has received from the EU is NOT FREE it all needs to be paid back .