Bulgarian FinMin Ties State Servants Pay with Performance

Bulgaria's Deputy Prime Minister and Finance Minister, Simeon Djankov, proposes a minimum retirement age increase from as early as 2012. Photo by BGNES

Bulgaria's Three-Way Council between the cabinet, the business and the trade unions is meeting Tuesday to discuss upping retirement pensions and the reform involving pay for State servants.

The news was reported by the Bulgarian National Television.

The plan for administrative reform had been prepared by the Finance Ministry under the leadership of Deputy Prime Minister and Finance Minister, Simeon Djankov.

The most important measure is eliminating bonuses for years of service and tying them with job performance. Another change is for all State servants to receive a fixed 70% from their contracted salary while the rest to be received as a bonus for good work.

According to the trade unions, however, this new system is highly subjective as far as assessment of employees and will have an effect on about half million people.

The syndicates further oppose immediate upping of retirement age and required years of service – by 6 months each year, beginning in January, 2011, as Djankov wants.

The administrative reform was one of the very first ones to be launched by the cabinet. In addition to the Three-Way Council, it will be presented to the media Tuesday by the team that prepared it.

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