1/5 Bulgarian Employees Work in Gray Economy

Business | February 10, 2011, Thursday // 10:50|  views

Bulgaria's hotel and restaurant industry is leading the statistics for unregistered payments. Photo by BGNES

Every fifth Bulgarian is employed in the gray economy and is working on the black market in one form or another, a survey showed.

The survey was conducted by the Bulgarian Chamber of Commerce and Industry, together with the National Labor Confederation (KT) "Podkrepa".

The poll included a total of 6337 employees from across the country, working in 10 different economic sectors in the end of 2009 and the beginning of 2010.

The results showed that 8% of the employees work without a contract. Most of them are working in the hotel and restaurant sector, construction and apparel industry.

The contracts of 8.5% of the respondents do not indicate the whole salary and the employees receive some part under the table.

A third of the people have complained that overtime is not paid or is paid partially. The violation is reported mostly by workers in the transport sector – 44.3% of the respondents.

Unregistered payments are twice more in northern Bulgaria, than in the southern part of the country. The situation is worst in the districts of Varna, Dobrich, Shumen, Silistra, Targovishte and Razgrad. Only 83.5% of the employees in these districts have contracts.

Hotel and restaurant industry is leading the statistics for unregistered payments. Almost 14% of the employed in these sectors are working without signing contracts. The percentage in construction and transport is 12%.

According to the survey, half of the Bulgarian population is insured at the legislative minimum, which means that 46.8% of the people are hired at minimum insurance thresholds.

The most violations are registered in companies with up to 10 employees. Only in 76.5% of the workers in such companies receive their whole salaries without discrepancies according to their contracts. In enterprises of more than 250 people, almost 93% are employed with a contract.

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Tags: gray economy, employees, employers, survey


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