Nearly 1000 Firms in Bulgaria Delayed Salaries in 2013

Business | December 8, 2013, Sunday // 19:58|  views

Photo by BGNES

Bulgarian employers are delaying salaries worth tens of millions of leva, according to statistics of the General Labor Inspectorate.

According to data of Bulgaria's General Labor Inspectorate, as cited by private TV station bTV, nearly 1000 companies delayed salaries to their employees in 2013.

Employers currently owe a total of BGN 59 M, and a sum of BGN 50 M was paid after the intervention of labor inspectors.

Since the beginning of 2013, some 40 000 workers received their salaries after the due date, and some of them are still waiting to get paid.

In 1/3 of the cases, the delay was by one month, in 19% of the cases the salaries were paid 2 months after the due date, and in 12% of the cases the payment arrived three months behind schedule.

Salary delays were most common in the sectors of construction, transport and healthcare.

Bulgaria's government, trade unions and employers are discussing a proposal for amending the Labor Code which will have a direct influence on the payment of salaries.

Bulgaria's Labor Code currently provides the opportunity for a crisis-stricken company to pay 60% of the salary, but no less than the minimum monthly wage for the country. The remaining 40% are to be paid with interest.

The Ministry of Labor and Social Policy plans changes to the Labor Code under which the provision allowing employers to temporarily withhold 40% of the salary will be dropped.

Under the changes, if the workers discharge their duties conscientiously, they must receive their full salary, regardless of the financial difficulties of the company.

The business sector is expected to oppose the proposed legal amendment on the grounds that companies in a critical state will not survive.

The proposed Labor Code amendment has been submitted with the committee on labor legislation at the National Council for Tripartite Cooperation.

Following a discussion at the National Council for Tripartite Cooperation, the set of Labor Code amendments is to enter Parliament.

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Tags: salary delay, General Labor Inspectorate, Labor Code, trade unions, National Council for Tripartite Cooperation


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