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[size=85:3dc69268]TrudBG 17 June 2010

480 per month per person to live normally

To live normally, to pay current heating and fees per person had been required 480.68 leva in December last year Family of four two adults and two children had to have 1923 EUR, which is 0.5 percent more compared to September last year

This shows the analysis of the Institute for Social and Trade Union Studies CITUB cost of living in the last quarter of last year

Now 35.9 percent of households live with income per person to 240 leva, while those with more than 480 BGN 13.8%. Average income per person, which includes not only wages but also benefits, family allowances, etc.. Is 307.07 EUR and represents only 56.5 percent of the cost of living. So the Bulgarians gave up everything he is not indispensable. Do not buy new furniture and other goodies for your home, buy clothes and shoes in extreme need, deprived of leisure, stopping smoking, drinking cheaper alcohol to bind the family budget, experts say.

According to them, the average salary for the nine months of last year increased by 10.1 percent compared to January, but the increase was not due to real increases and reductions of staff in companies.

The higher cost of living at the end of 2009 is not due to higher food prices, which is 0.7 percent compared to third quarter, but because of increased prices of alcohol and cigarettes, the higher tuition fees, prices tickets to movies and theater, drinking water, medical services and medicines. The outlook for this year are even greater decline in living standards of households.

From "
on the ground"
as it were, the economic situation in Bulgaria is getting a lot worse pretty quickly. You can see it in the no of shops closing down. Particularly in Dobrich and Balchik, but perhaps not so much in Varna. Prices have gone up so as to noticeably hit your pocket, especially petrol - 98 octane is now the same or marginally more than in the UK. How can this be justified in view of the salary levels and general standard of living? What about the pensioners on 80 leva per month? That's almost half a tank of petrol for my car :))

Unfortunately the future isn't bright for the people on very low incomes and I don't see that the BG government will do anything about it ? this is only words for the EU

The criticism of Borisov heard on all the streets now is that he is only building bridges and roads. Whilst this is necessary it hardly addresses the problem of the Bulgarians that are on the verge of starving.

[size=55:1r080emd]BNR

Raising of salaries with no economic background

The Confederation of Independent Trade Unions in Bulgaria insists the minimum wage in this country to be raised from EUR 120 to EUR 145 as of July 1 2011. The syndicate suggests a discussion to take place with the participation of the employers and the government for increasing of the minimum wage. The main reason pointed for the demand is growing of the population’s purchasing ability. Experts say that the minimum of basic needs has gone up by 4 percent as a price. The average wage has not grown through the past year and has even been decreased at some places. 87 percent of companies, situated in this country did not raise their employees’ wages in 2010. Some 630,000 people receive up to EUR 200 per month, the syndicate says, while at least EUR 1,022 are necessary for the support of a family of four.

What are the reactions of the government and the employers, regarding the syndicate’s demand?

Bulgarian Finance Minister Simeon Djankov stated firmly that there were no funds provided in 2011 budget for increasing of the minimum wage. Social Minister Totyu Mladenov on the other hand upholds the syndicate’s position, since the minimum wage goes below the poverty line after the assessment of taxes and social securities. However, Bulgarian business stands against the raising demanded. The Bulgarian Chamber of Commerce and Industry /BCCI/, one of the big employers’ organizations is ready to discuss the suggestion, but only if the national statistics marks a growth of labour productivity. This is because it may turn out that less is produced than received as salaries. Thus the economic environment may be destabilized. Bulgarian business representatives say that there are companies now with growing salaries, but this is due to improved economic indicators, better management and higher capacity. These are mainly companies from the export sector – the branches of pharmacy, information technologies, agriculture etc. Actually there was an 11 percent growth of payment in 2010, BCCI experts claim, due to the reduction of low qualified workers and the keeping of high-qualified employees’ salaries. Thus labor productivity goes up. BCCI says that the minimum wage can be raised after the recovery of the Bulgarian economy, but not now, when different sectors are pre-structured. Some of those work, but others’ activities go slowly down and generate unemployment. The pressure on labour market is dangerous for Bulgaria’s economy. BCCI chair Bozhidar Danev comments the syndicate’s demands:

“To raise the minimum wage with EUR 25 means a shock growth with over 20 percent and this is expected to happen with an administrative act in a country with so-called market relations. The incomes of employed people have to go up, since the current situation creates difficulties for the economy itself. However, there are no financial resources at the moment. We have negative economic flows now as there are no incomes from foreign investments in Bulgaria. One can receive income from his or her labour on the market. Some companies don’t have production - therefore they can’t pay salaries. This means a reduction of employees. By raising the salaries we will force the unemployment and will create another problem. The minimum wage is connected to the minimum pension. Then how shall we find funds in the budget of the National Social Security Institute for increasing of the minimum pension that is in a determined proportion.”

The decision on the minimum wage is to be taken by the National Council for Trilateral Cooperation. The argument between syndicates, employers and government is expected to continue through the forthcoming months.

[size=55:y1t1uaz1]BNR

Incomes and employment rates in 2010

According to data published by Bulgaria’s National Statistical Institute for 2010, the average wage in the country has gone up by more than 10 per cent compared to 2009. Experts attribute this trend to the effects of the global economic crisis, and say that remunerations have gone up not because of improved living standard but because of personnel layoffs. Trade unionists, however, claim that last year, the cost of living has seriously increased and more and more Bulgarians fall below the official poverty line due to frozen incomes. What does a comparison between the data of the National Statistical Institute and the data provided by trade unions suggest?

According to the National Statistical Institute, during the last quarter of 2010, the average wage in the country reached 670 leva (335 euro). The public sector accounts for this increase to the largest degree. On a yearly basis, however, the highest wages have been of those employed in banking, insurance, the energy sector, as well as in occupations related to distribution of information and creativity. In the above-mentioned sectors, the average wage last year reached 1,400 leva (700 euro). The lowest wages last year were in the restaurant and hotel business, administrative services and others, estimated at about 215 euro, statistical data indicates.

According to trade unions, however, the cost of living in Bulgaria in 2010 has gone up by 6 per cent. The prices of major food products have gone up, with the highest increase seen in October, November, and December. Experts at the Confederation of Independent Trade Unions in Bulgaria (CITUB) claim that the necessary sum for covering the cost of living of one individual exceeds 500 leva (250 euro). Lyuben Tomov, head of the Institute for Social and Trade Union Research at the CITUB, explains that Bulgarian households have shrunk their costs because of rising and decreasing incomes. 87 per cent of factories last year did not change the average wages they pay to workers. Lyuben Tomov also explained that the polarization in society is deepening – the poor become poorer and those with high incomes receive even higher incomes. Data of the CITUB shows that 27 percent, or almost one third of Bulgarian households, are living below the poverty line, officially estimated in Bulgaria at 211 leva (105 euro).

The impoverishment of the majority of Bulgarians in 2010 has come as a consequence of frozen incomes and unemployment caused by the global economic recession. According to the Employment Agency, the average level of unemployment in the country for 2010 is about 9.5 per cent. This data, however, is based only on the number of registered unemployed individuals in employment bureaus across the country. A large part of the unemployed are not registered at all and work in outside Bulgaria. Although according to statistical data, unemployment in Bulgaria in April 2010 was lower and remained below 10 per cent until the end of the year, the situation on the market continues to be serious. Data from the National Statistical Institute shows that, in the fourth quarter of last year alone, the number of persons employed on labor contracts dropped by 50,000 persons on the third quarter of the same year. The biggest layoffs were done in sectors of seasonal employment – the hotel and restaurant business, processing industries and construction. Estimates of the CITUB show that the unemployment rates have increased by 313,000 people in crisis-stricken 2010.

Despite all statistical figures, the main question remains open – did 2010 make Bulgarians poorer or richer? Statistical data shows us that the average wage in the country went up by 10 per cent but an objective assessment of realities indicates that Bulgarians have actually grown poorer.

[size=45:230xls5e]novinite

Bulgaria Ups Retirement Age in 2012 in U-Turn Change

Retirement age in Bulgaria will go up by one year for both men and women as early as 2012, Deputy Finance Minister, Vladislav Goranov told the Members of the Parliament Wednesday.

In addition, the retirement reform with gradual increase of retirement age is moved from 2021 to 2015, over the deficit in the budget of the National Social Security Institute (NOI) and economy forecasts, according to Goranov.

Under previous Bulgarian legislation, the retirement age was not to go up until 2021. After that, it was supposed to increase gradually – every 12 months until it reaches 65 for males in 2024 and 63 for females in 2026, compared to the current 63 and 60. The current required years of service are 37 for men and 34 for women.

The new retirement age in 2012 will be realized through changes in the draft budget of State Public Insurance to be passed at second reading of the draft budget 2012. The first reading is held Wednesday.

All savings from the new plan will be used to increase minimum monthly pensions from BGN 136 to BGN 145.

The increase of retirement age will involve no more than 15 000 people, the Deputy Finance Minister says – this is the number of people, who will not be able to retire in 2012 over the move. He, however, stressed that the influx in the retirement system of older people, who have postponed their retirement over lack of required years of service and own wish, will shrink the effect of the increase of retirement age and would not reduce the NOI deficit.

Retirement age in Bulgaria is among the lowest in Europe, but so is the country's life expectancy.