site.btaLabour and Social Policy Minister Kalfin to Insist on Minimum Wage of Lv 380 as from 2015

Labour and Social Policy Minister Kalfin
to Insist on Minimum Wage of Lv 380
as from 2015


Sofia, November 25 (BTA) - Bulgarian Deputy Prime Minister and
Labour and Social Policy Minister Ivailo Kalfin told journalists
here on Tuesday that he favours an increase of the national
monthly minimum wage to 380 leva as from next year.

On Monday, the Confederation of Independent Trade Unions in
Bulgaria demanded a minimum wage of 400 leva, effective January
1, 2015, but the employers of the Bulgarian Industrial
Association opposed the idea.

Kalfin does not think that keeping the minimum wage at its
present level of 340 leva is a good option. In his words,
"fifteen months of deflation in Bulgaria imply that consumption
is dead and the domestic market is dead, which cannot possibly
leave the economy as a whole unaffected." The Minister sees a
way out in raising the lowest incomes.

Kalfin will propose a smoother and longer-term scale for an
increase of the retirement age than the one provided for in the
existing legislation, according to which the retirement age is
to rise by four months annually as from 2015. "I am keen on
finding a solution that will lead to sustained support for the
pension reform," he said. Options will also be proposed to ease
access to income-earning programmes for people who have a few
years left until retirement but are unable to find work.

Replying to a question, Kalfin said that one option is early
retirement on a reduced pension. He specified that this will not
follow exactly the pattern proposed by the Bulgarian Socialist
Party.

"Social insurance contributions must increase in the long term.
The maximum contributory income should better go up next year,
but this has yet to be discussed with the Finance Minister and
with the social partners," Kalfin added.

Options will also be sought to provide tax relief to working
parents. "We should keep in mind that we will start next year
with a 3.7 per cent deficit. Don't expect me to be the one to
press for a further increase of the deficit because this will
land us into an excessive deficit procedure in the EU, which is
very dangerous for the State and in which we will be bogged down
for years," the Deputy PM said. PK/LG

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