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Bulgarian Cabinet Proposes Minimum Wage to Become Up to 55 % of Average Pay
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The Bulgarian government has proposed for the minimum wage in the country to become between 35 % and 55 % of the average remuneration.
The cabinet has made the proposal to the employers' organisations and trade unions, daily Dnevnik informs.
This becomes clear from a statement of objection submitted by the Bulgarian Industrial Capital Association (BICA).
At present, the minimum wage is defined administratively.
This year the minimum wage was increased twice – first to BGN 360 on January 1 and then to BGN 380 on July 1.
The plans of the Finance Ministry foresee for the minimum wage to increase to BGN 420 next year and to BGN 460 in 2017.
According to the data of the National Statistical Institute (NSI), the average wage in the first quarter of 2015 stood at BGN 859.
This means that in the first quarter of the year, the minimum wage in Bulgaria amounted to 42 % of the average remuneration.
The statement of BICA proposes for the minimum wage to be in the range between 30 % and 40 % of the average pay and to be negotiated on economic activities between employers and trade unions.
According to BICA, the results of the policy of administrative increase of the minimum wage are negative, the most visible shortcoming being the rise of the unemployment rate among low-qualified employees.
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