Finance Ministry does not plan to raise the minimum wage for 2011

The Finance Ministry’s estimates do not project any increase in the minimum working wage, it became clear during yesterday’s meeting of the Economic Growth Council (EGC). During the weekend, Social Minister, Totyu Mladenov, launched the idea of raising the minimum wage from BGN 240 to BGN 270, pointing out that this would lead to an additional BGN 20 mln in revenues from social security installments into the Treasury.

Social benefits, compensations, the minimum and maximum pensionable income will not be raised either. "Pensions should not be increased neither next year nor in 2012," said Deputy Finance Minister Vladislav Goranov after the meeting of EGC.

Tsvetan Simeonov, Chairman of the Bulgarian Chamber of Commerce and Industry (BCCI), said he supported the projected decrease of the State’s redistributive role by 36.7% and assessed as a positive step the maintaining of the minimum wage level. BCCI’s position is that the social security burden ratio should be changed towards increasing the share of employees, but the Finance Ministry plans for 2011 do not project a change in this direction. The Bulgarian Industrial Association (BIA) has expressed its satisfaction with the fact that the level of the tax-insurance burden would remain unchanged next year.