"Vazrazhdane" does not support the raising of taxes and insurances, as well as the freezing of employees' incomes, including dropping the previous criterion for determining the minimum wage through “untying” of the average salary. This is stated in the party's position on the minimum wage.
According to "Revival" the government's drive to achieve a 3% deficit leads to the introduction of risky measures.
"Some of the most likely measures that are expected to ensure that the deficit is brought within the framework we have set out include raising taxes and insurance. Such promotions are unwarranted and very harmful. They will simultaneously reduce the disposable incomes of Bulgarians (incomes are already the lowest in the EU), stimulate a transition to the gray economy, as well as increase the costs of employers (if the latter decide to compensate the salaries of their employees, at the expense of increased taxes and insurances)", it is noted in the position.
According to "Revival" one dangerous measure that is already being developed is the actual reduction of the minimum wage (MW).
"MRZ should have become BGN 1,077, according to PMS No. 359 of 23.10.2024, promulgated in the “State Gazette” No. 90/25.10.2024 However, these days, according to publications in the media and information provided by the trade unions, the MTSP foresees in a text in the state budget for 2025. change of the text of Art. 244 of the Labor Code and removing the mechanism for determining the minimum wage in the ratio of 50% of the average wage for the country. This is a completely irresponsible decision by the caretaker government, which threatens the incomes and survival of a large part of Bulgarians with incomes equal to or close to the minimum wage," the position states.
The proposed change of the mechanism for determining the MPH by “untying” of the average salary will cause enormous harm to the lowest paid Bulgarian citizens, the party also points out.
According to "Revival " given the cartelization and feudalization of entire sectors and areas in the Bulgarian economy, the remuneration of many workers and employees is artificially kept low (including at the very level of the minimum wage). "However, the average wage in the country can rise (and is rising) thanks to free and competitive sectors. That is why the most oppressed Bulgarians in their salaries need a legally guaranteed connection of their salary with the national average – otherwise, they will be doomed to remain in the trap of low wages set by some cartel or local feudal lord," said "Vazrazhdane".
According to the party "detaching” of the Ministry of Health from the average salary will accelerate the growth of the scissors in the incomes in our country. "This is particularly worrying due to the fact that Bulgaria has the highest income inequality in the entire EU according to the latest Eurostat data. Eurostat calculates the so-called Gini coefficient, measuring the concentration (distribution) of income, and this coefficient for Bulgaria at the end of 2023. was in the amount of 37.2 compared to 29.6 on average for the EU - with which our country ranks first in terms of income inequality. Therefore, a further deepening of inequalities is not only unfair – it will lead to more socio-political tensions and harm overall economic growth," the political formation said.
„Revival“ does not support the raising of taxes and insurances, as well as the freezing of employees' incomes, including the dropping of the previous criteria for determining unemployment benefits – according to the envisaged measures discussed in the media unofficially (before the draft Law on the State Budget for 2025 was submitted to the National Assembly's registry). These measures have the sole purpose of achieving a 3% deficit in order to include us in a union that we are clearly not ready to enter, the position states.
According to "Revival" the purpose of these measures is "unjustified and risky for our economy, also deeply undemocratic – due to the refusal of the political elite to ask the Bulgarian people about this strategic topic".
The proposed budget measures are detrimental to the interests and survival of a large part of Bulgarian citizens, according to "Vazrazhdane". In Bulgaria, there are laws adopted with relative consensus by the parliamentary parties. Such are a large part of the laws guaranteeing fair pay for workers. Their irresponsible change with an unjustified momentary goal is unacceptable, which is completely unjustified and, moreover, will immediately harm the Bulgarian citizens, the party states.
From "Revival" add that this will be stated by them crystal clear at the upcoming meeting with Finance Minister Lyudmila Petkova, where it is expected that the measures that the government will take to limit the deficit will be officially announced for the first time (with a project not yet submitted to the National Assembly's registry for the state budget for 2025)
Legislative changes to transpose the Adequate Minimum Wage Directive will not change the already determined amount of the minimum wage for 2025, the Ministry of Social Affairs told BTA.
In accordance with the current Labor Code (LC), the minimum wage for 2025 has been determined by a decree of the Council of Ministers and will be BGN 1,077 from January 1, the ministry said. The department's position specifies that legislative changes to transpose the Adequate Minimum Wage Directive in the EU into national legislation will not lead to a reduction in its size.
At this stage, no final text of the Law on Amendments and Additions to the CT, related to the transposition of the Directive, has been prepared, commented the MTSP. From there, they specify that the amendments are related to the introduction of criteria for determining the minimum wage and a reference value for assessing its adequacy.
The deadline for transposition of the Directive is November 15, 2024, and it stems from the obligation of the member states to do so within 2 years of its promulgation, commented the Ministry of Health and Welfare. “In this period, the government has fulfilled its commitment to present to the European Commission information on the current national legislation related to the Directive”, states the answer to BTA.
Earlier in the week, the Confederation of Labor “Support“ and the Confederation of Independent Trade Unions in Bulgaria came out with positions regarding the discussed legislative changes.