site.btaUPDATED Minimum Wage to Reach Lv 710 by April 1

The minimum wage in this country will increase to 710 leva starting April 1, as agreed during an extraordinary meeting of the National Council for Tripartite Cooperation (NCTC) here on Tuesday. The Council failed to settle on a unanimous decision regarding the increase of the minimum monthly wage, which currently stands at 650 leva.

Finance Minister and NCTC Chair Assen Vassilev said after the meeting that there is nothing new or dramatic, adding that, “The decision made by Parliament regarding the Budget Act will be entered into force via the Council of Ministers.”

The Bulgarian Industrial Capital Association were against the increase, while the Bulgarian Industrial Association decided to abstain.

The Podkrepa Labour Confederation chose to vote for the minimum wage increase but labelled it insufficient. “Inflation in February 2022 compared to February 2021 is now 10 per cent. The minimum wage increase, which was supposed to catch up with the European average, is under 10 per cent,” economic adviser to the Podkrepa President Vanya Grigorova said.

According to data she cited, the purchasing power of the Bulgarian minimum wage is lower than three other Balkan countries (Republic of North Macedonia, Serbia, Montenegro), which unlike this country are not EU Member States. Grigorova pointed out that Podkrepa insisted on a mid-year minimum wage increase, when a budget update is planned. The unionists requested to see a minimum wage equal to half the average monthly salary, or 840 leva. Grigorova said that the minimum wage must reach 1,000 leva by mid-year, in order to reflect the purchasing power.

The NCTC also discussed the 60/40 job retention scheme, which will be extended on June 30.

Labour and Social Policy Minister Georgi Gyokov told Bulgarian National TV on Tuesday evening that the minimum wage could be increased one more time this year, given that agreement is reached after talks with the social partners.

He noted that wage increases in Bulgaria in recent years have reduced the number of people at risk of poverty, whose share has dramatically decreased since 2016. The good standard of living and high incomes require economic stability, he said. Unfortunately, the crises related to COVID-19 and the war in Ukraine, which impacted Bulgaria and Europe, also affect the economy. That is why the Government is seeking ways to help Bulgarian businesses, so workers can be paid properly, Gyokov said.

He recalled that the development of a mechanism for determining the minimum wage has been included in the Government coalition agreement and it should be set in place by the end of 2022.