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Bulgaria Social Minister Warns of Insurance Hike

Business | May 2, 2010, Sunday // 15:51

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Bulgaria Social Minister Warns of Insurance Hike: Bulgaria Social Minister Warns of Insurance Hike

Bulgaria’s Labor and Social Policy Minister, Totyu Mladenov, says either the draining of NOI by the staggering use of sick leave will stop or insurance will go up 1%. Photo by BGNES

The mandatory health and maternity leave insurance contribution can go up by 1%, Bulgaria’s Labor and Social Policy Minister, Totyu Mladenov, says.

Mladenov spoke Sunday for the Bulgarian National Radio, BNR, explaining the move will be triggered by the increased sick leave use in the country.

Currently, insurance is 3.5% of the employee’s income and is shared between workers and employers in a 40:60 ratio.

According to data from the National Social Security Institute (NOI), 160 000 more Bulgarians have used sick leave in the first quarter of 2010 compared to the same period in 2009 while NOI sick leave expenditures for the first quarter are up BGN 17 M.

“This would be the reason why insurance might have to go up 1% - something that would not be of benefit for either the worker or the employer. So we must stop the draining of NOI,” Mladenov said.

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