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Proposal to Increase Social Insurance Could Lead to Higher Unemployment - CEIB
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Bulgaria's Minister of Labor and Social Policy, Ivaylo Kalfin. Photo: BGNES
According to a survey conducted among representatives of Bulgaria's CEIB, businesses will be more likely to resort to reducing their workforces instead of paying higher social insurance contributions to employees.
The Confederation of Employers and Industrialists in Bulgaria asked whether they would support a motion for an increase in insurance payments, 97.3% of respondents said that they would not, private NOVA TV station.
Business owners expressed the opinion that instead the Bulgarian government should work on improving collection from employers who commit tax violations.
They further stated that employees would most likely also oppose the change.
Bulgaria's Minister of Labor and Social Policy, Ivaylo Kalfin proposed increases in both the minimum wage and social insurance payments.
According to him, in case of a monthly salary of BGN 1000, employers will need to pay an additional BGN 3, while employees will have to contribute extra BGN 2.
The official decision is expected at the end of March, after a series of discussions among employers' organisations, trade unions and representatives of the government.
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