site.btaPodkrepa Labour Confederation Insists on Minimum Working Wage Over BGN 1,000 in 4 Years

Podkrepa Labour Confederation Insists on Minimum Working Wage Over BGN 1,000 in 4 Years

Sofia, April 5 (BTA) - The Podkrepa Labour Confederation insists that the minimum working wage keeps on growing until labour costs are equalized with the labour productivity. An expert opinion titled "What Bulgaria Do We Want?" was presented by Podkrepa President Dimiter Manolov at a news conference here on Wednesday. In the document, the trade union appeals to the new National Assembly and the future government to increase the standards of living in the country.

Traditionally, the minimum working wage in Bulgaria is the lowest in the EU and it is not true that the Bulgarian workers' productivity of labour is so low that they do not even cover their own wages, Podkrepa Vice President Ioannis Parteniotis said. He explained that labour productivity here is 2.3 times lower than the average European one, while the labour costs are 4-6 times lower than the Europe average. He noted that at present Luxembourg has the highest minimum working wage in the EU - 2,000 euro, which is 1,800 euro higher than the minimum pay in Bulgaria. "If the pace of growth of the minimum wage is 40 leva annually, then we will reach the current Luxembourgian level in 90 years. However, they will not keep it the same either," Parteniotis said.

He noted that as of February 1 the minimum working wage in Romania has been 320 euro, the amount, which the Bulgarian politicians pledged during the election campaign to ensure in four years' time. In his opinion, if the productivity of labour is two times lower than the average European one and the payment is five times lower, the Bulgarian workers are underestimated 2.5 times and it is quite realistic for the minimum wage to reach 1,000 leva and even to exceed this amount at the end of the term of the would be government.

Podkrepa also suggests introducing a tax threshold equivalent to the minimum working wage. The trade union confederation also insists on differentiated VAT rates for textbooks, medicines, bread and prime necessities.