Bulgarian Business Outraged by Upping of Minimum Wage

Sopharma CEO and owner Ognyan Donev, who is the Head of CEIBG, says the planned increase of the minimum monthloy wage is too small. Photo by BGNES

Bulgarian business, with the exception of the Confederation of Employers and Industrialists in Bulgaria (CEIBG), opposes the increase of the minimum monthly wage.

It was announced earlier Thursday the minimum monthly wage in Bulgaria is going up by BGN 30, from BGN 240 to BGN 270, on September 1 along with the widow's and widower's retirement pensions.

The CEIGN Head, Ognyan Donev, says the increase is not enough, adding none of the companies in the Confederation pays such low salaries.

The Bulgarian Chamber for Commerce and Industry does not support the raise on the grounds the burden for the business would be too much, and would trigger risks of layoffs and expansion of the shady economy.

A survey of the Chamber has shown that 90% of employees would want a pay raise over the increase of the minimum wage while 80% of employers are not inclined to up salaries at all.

The raise of the widow's and widower's retirement pensions is supported by the Chamber because it is overdue and depends on the State budget.

The Bulgarian Industrial Association (BIA) points out the increase of the minimum monthly wage cannot be put on the table until next year since in the conditions of wavering economic recovery, a State-mandated increase of salaries in the private sector would have negative effects on the labor market by increasing unemployment.

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