site.btaLabour Minister Worried by Number of Young People Inclined to Work Informally

"It is worrying that quite a few young people in this country are inclined to work without an employment contract," Bulgarian Labour and Social Policy Minister Borislav Gutsanov said here on Monday at a meeting with students of the University of Economics - Varna.

Varna Regional Governor Andriyana Andreeva and the University Rector, Prof. Evgeni Stanimirov, joined the discussion.
 
"Bulgarians should realize that they must have employment contracts if they want to be protected," Gutsanov added. He recalled that, according to statistics of the Bulgarian Industrial Capital Association, the grey sector accounts for 23-24% of the country's economy. "Other statistics give an even larger figure, but even if this conservative estimate is right, it is worrying that nearly one in four people works informally," the Labour Minister said, specifying that these people practically have no rights. Gutsanov stressed that the grey economy is to blame for the rather low pensions in Bulgaria.  

Employers, too, must adopt a different conduct, the Minister emphasized. He cited this as a reason for ordering tightened control of companies. Pecuniary penalties approximating BGN 60,000 were imposed within three months, which is an indication that violations are committed, Gutsanov pointed out. He argued that, in addition to penalizing employers who breach the rules, enhanced prevention and awareness campaign are needed, too. That is why his Ministry's team is holding so many meetings with young people countrywide, to get across the message that they have both obligations and industrial rights.  

The Minister commented that he will propose revisions of the child care policy in the next state budget. "We offer the longest child care leave in Europe, and this should be kept," Gutsanov argued. He recalled that the monthly child care benefit during the second year of a maternity leave is BGN 780. This amount should be increased, and if the mother cuts short her leave and returns to work, she should be entitled to 75% of the benefit. "This will not entail larger budget expenditures, on the contrary, it will result in an increase of revenues," he explained. In this way, women will not lose their qualifications and will help address the labour shortage issue.