site.btaLabour, Social Policy Minister Kalfin: Bulgaria Cannot Develop Economy Based on Low Pay

Labour, Social Policy Minister Kalfin: Bulgaria Cannot Develop Economy Based on Low Pay

Pernik, Southwestern Bulgaria, August 10 (BTA) - Bulgaria cannot
 develop an economy based on low payment. Labour productivity
and competitiveness should not grow only by hiring cheap labour
but with investments in production, energy-saving technologies
and other such steps, Deputy Prime Minister and Labour and
Social Policy Minister Ivaylo Kalfin said in an interview for
BTA.

Eleven per cent of the currently employed are receiving minimum
wages. Women in Bulgaria receive an average 13.4 per cent
smaller salaries and 40 per cent smaller pensions, he said. At
the same time, women in Bulgaria work seven times more than men
to care for their homes and three times more in care for
children. When a woman is a mother, she tries to get a job that
allows her to care for her child, considering this more
important than a career. The combination of housework and
childcare are precisely the changes the incumbent will introduce
 to allow young mothers and parents to grow in their career and
receive the remuneration they deserve, Kalfin said. In the
autumn, his ministry will table an Equal Opportunity Bill aimed
to increase pressure on the administration and the private
sector to avoid "punishing" one gender or another. Young mothers
 and parents will be given the chance to grow in their career
and receive the relevant salary.

Labour productivity and competitiveness can grow not only by
means of hiring cheap labour, but also with energy-saving
technologies, among others. Why does a Bulgarian produce thrice
less than an average European? Not because he or she is more
lazy or more stupid, but because enough investments have not
been made. Investments should be made in the direction of
equipment, energy-saving, not in companies being competitive
because of cheap labour, Kalfin says.

Entirely new bills of the Disabled Persons Act and the Social
Assistance Act are being drafted. A modern system ordering the
existing 1,000-plus social services will be applied. This means
that everyone will be in the clear about the access to a
particular service according to his or her needs, Kalfin pointed
 out.
 
The entire procedure of extending pensions for disabled with be
overhauled, the Minister said. Individual care for disabled will
 also be increased and the "taps" through which resources from
pensions of disabled flow will be closed.

Revisions related to private pension funds will be discussed in
the fall. They will be based on a comprehensive proposal of the
Financial Supervision Commission and concern larger
opportunities for investment by funds, greater transparency in
their work, restrictions for investment by related parties and
others. They will have the maximum tools at their disposal and
will have to be active to convince people to give part of their
insurance there, Kalfin pointed out.