A working group at the Ministry of Finance is rapidly developing a new mechanism for determining the minimum wage. In the talks between employers and unions, significant progress has already been made in the way in which the range for future negotiations will be determined. This was stated by the former economic advisor to the CT “Podkrepa“ Vanya Grigorova and the executive director of the Association of Industrial Capital in Bulgaria Dobrin Ivanov on the air of “Hello, Bulgaria“.
According to Ivanov, the discussions are constructive, but at times sharp. It is planned that the amount of the minimum wage will be negotiated directly between the employer and union organizations in a certain period of the year.
"The negotiations will take place within a predetermined range with a lower and upper limit. The lower limit will be the current minimum wage, which means that it cannot be reduced. The upper limit will be calculated by indexing the current minimum wage according to four indicators. The goal is to make it clear even before the start of negotiations what the limits of the future increase can be," explained the executive director of AIKB.
Vanya Grigorova insists that the cost of living should also be included among the indicators: “It is important to include the cost of living indicator, as it shows how much the minimum wage allows the worker and his family to support themselves and live with dignity“.
According to her, the CITUB also supports the inclusion of this indicator, but the concern remains that it may only begin to be implemented after about three years.
According to Dobrin Ivanov, the idea is for the new mechanism to remain stable for at least three years, in order to have predictability for both business and workers. Ivanov assured that the minimum wage for 2027 will not be lower than the current level. “The minimum wage for 2027 will not be 620 or below 620 euros for sure”, he said.