The proposed minimum wage of 660 euros is close to the maximum allowed by the new mechanism for determining remuneration. This was stated by Deputy Prime Minister Atanas Pekanov to bTV. According to him, the upper limit is 670 euros, and talks about the final amount are ongoing.
„We are almost at the maximum. The maximum is 670, now we are at 660“, said Pekanov.
The dispute over the mechanism
The Deputy Prime Minister defended the change to the previous automatic mechanism for determining the minimum wage. According to him, business has repeatedly objected to this approach, and rising labor costs are among the reasons why the Bulgarian economy is losing competitiveness.
Pekanov also stated that wage increases in previous years have compensated for their lagging behind the cost of living. However, he emphasized that the higher minimum wage also leads to an increase in other payments that are tied to it, which increases costs for the state.
The final decision is pending
According to the Deputy Prime Minister, the proposal for 660 euros was made in the context of budget restrictions and the presence of a surplus deficit. He stated that the government has done what it could within these limits, but the final amount is still the subject of discussions.
The unions do not accept the proposal. The Confederation of Bulgarian Trade Unions and the Confederation of Trade Unions “Podkrepa“ have already expressed disagreement with the setting of a minimum wage of 660 euros. Pekanov described it as normal for unions to insist on more funds for their members and assured that wages continue to increase.
Sources: novini.bg