site.btaAverage Wage in Highest-Paid Sector Is 5.5 Times the Level in Lowest-Paid Sector

Sofia, April 30 (BTA) - The average wage in the highest-paid sector of the Bulgarian economy is 5.5 times the level in the lowest-paid sector. The average wage is highest in information technology, at 3,150 leva per month, and lowest in the restaurant business, at 580 leva, Confederation of Independent Trade Unions in Bulgaria (CITUB) President Plamen Dimitrov said, as quoted by his organization's press office on Monday. Dimitrov unveiled an annual report on the results of collective bargaining in 2017 and the expectations for 2018.

The money which goes into the pockets of working Bulgarians has increased by 6.1 billion leva over the last five years, which, the CITUB says, is thanks to the trade unions' negotiations with employers, and also to the shortage of labour which has pushed pay rates up.

In 2017, the average monthly wage in Bulgaria increased by 11.8% to 1,060 leva. Remuneration to employees rose as a percentage of GDP. In 2017, it was 43.1% of GDP, up by 6 percentage points compared with 2016. However, the share of the working poor also increased, which means that the money was not distributed properly, according to the CITUB.

Although industrial production is expanding, this is not always reflected in the workers' wages, the CITUB noted. Examples include: the manufacture of metal products (exclusive of machinery and equipment), where productivity per employee has risen by 31.5% while the average wage in the sector has risen by only 9.2%; the manufacture of computers, electronic and optical products, where the figures are 19.8% and 3.4%, respectively; and the manufacture of rubber and plastic products, where the figures are 22.2% and 11.0%, respectively.

Latest data show that in nominal terms, the average wage in Bulgaria is between 1.8 times and 2.2 times lower than in the other "new" member states of the EU, and between 5 and 10 times lower than in the older member states.

In 2017, wages in Bulgaria typically went up by between 3 and 10%, and rarely by more than 10%. In some sectors, however, there are no collective agreements. These sectors include the light industry, chemicals, and food. At the municipal level, there are more than 150 collective agreements signed with the local authorities. The best results in this respect have been achieved in Varna, Bourgas, and Stara Zagora.

Bulgaria's GDP in 2017 was about 100 billion leva, Dimitrov said. Domestic demand is the main growth driver. Final consumption grew by 4.5% last year. Dimitrov sees real opportunities for higher income growth in industry.