WAGES ACCORDING TO THE EUROPEAN FORMULA: Will wages change in our country? – Society – Bulgaria – Hello, Bulgaria

WAGES ACCORDING TO THE EUROPEAN FORMULA: Will wages change in our country? – Society – Bulgaria – Hello, Bulgaria
WAGES ACCORDING TO THE EUROPEAN FORMULA: Will wages change in our country? – Society – Bulgaria – Hello, Bulgaria

The European Parliament proposes a directive to determine the minimum wage in individual member states. Among the ideas is to make it 50% of the minimum or 60% of the median.

“The directive gives several options – either to compile a basket of essential goods and services that a person with a minimum wage should be able to afford, or to be at least 50% of the average wage or 60% of the median,” he explained Vanya Grigorova from KT Podkrepa.

“The other option is to make the basket. Then it will be more expensive for the employers”, believes Grigorova.

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Even during the budget update in the middle of the year, KT “Support” was in favor of the idea of ​​making the minimum wage half of the average wage. “Our proposal was not accepted during the budget update, so we did not support it,” said Grigorova.

“We insist on the creation of a single mechanism that would provide businesses with predictability of labor costs,” said Dobrin Ivanov, executive director of the Association of Industrial Capital in Bulgaria. “We support the introduction of a single mechanism, which is foreseen in the directive. It is a matter of discussion what the formula for determining the minimum wage will be,” Ivanov said.

And specified that if the EU adopts the directive, our country has 2 years to harmonize the legislation with the European one.

“2025 at the latest must be adopted,” explained Ivanov.

“The directive encourages contractual initiation. Most of the directive’s clauses say that minimum wages must be negotiated, a level of collective bargaining between employers and unions of at least 80% must be achieved. Each country must develop a plan on how to reach such a level”, explained Grigorova.

According to her, in case such an agreement is not reached, it is proposed to introduce a single mechanism for determining the minimum wage, which can be either 60% of the median or 50% of the average wage.

“Unfortunately, in Bulgaria we are not talking about the median, but only about the average salary. The average has a few drawbacks – it is an average gross salary, while the minimum is not gross. The average is greatly influenced by the high income groups. There are many high ones that inadequately increase the average wage. The third inconvenience is that the average is also affected by the minimum. Thus, we enter a mechanism where the average constantly increases, and then the minimum must too”, explained Grigorova.

She explained that the average salary is currently around BGN 1,700.

Regarding collective bargaining, Vanya Grigorova explained that where it is implemented, unions are strong and negotiate higher minimum wages. “The condition for this to happen is that at least 80% of the workers are union members,” explained Grigorova.

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The article is in bulgaria

Tags: WAGES EUROPEAN FORMULA wages change country Society Bulgaria Bulgaria

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