Bulgaria's FinMin Rejects Again Upping Minimum Wage

Bulgaria's Finance Minister, Simeon Djankov, (R) and Labor Minister, Totyu Mladenov, (L) are both firm on their opposite opinions on upping minimum monthly wages. Photo by BGNES

Bulgaria's Finance Minister, Simeon Djankov, has reiterated his position that there is not enough money in the 2011 state budget for increasing minimum monthly wage.

His statement came in response to Bulgaria's Social Policy and Labor Minister, Totyu Mladenov, who suggested earlier on Tuesday a proposal to increase minimum monthly wages by BGN 30, beginning July 1.

Djankov suggested amending the constitution with text for specific financial restrictions.

"In this way, when the state budget is adopted, neither society, nor ministers could ask for more money," he said.

The pact for financial stability, developed by the Finance Ministry, envisions introduction of restriction of the budget deficit under 3% through constitutional amendments.

Another change envisions less distribution of money – below 40% of the GDP. In order for direct taxes to go up, the proposal would have to be voted by two thirds of the MPs, according to another amendment.

Djankov also stated that change and increase of value-added taxes (VAT) and excise duties would happen without a qualified majority,

"However, excise duties have a minimum threshold, which is defined by the EU. The same might be applied soon to the VAT," the minister said.

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