Income distribution

The Confederation of Labour Podkrepa will ask for a minimum wage of 1000 BGN to be set in the budget for 2020, since this minimum wage currently corresponds approximately to the labor productivity. This was stated by the economic adviser of the trade union Vanya Grigorova, who participates in a forum for the rights of posted workers, organized by the trade union, BTA reported.

The leadership of the Labor Ministry is considering introducing an "exemption clause" for the obligatory implementation of a sector-specific collective labor contract for companies on the verge of shutting down. It is possible that such a regulation will be included in the draft law for investment incentives to be tabled in Parliament this week.

The state, business and trade unions will not agree on a mechanism for raising the minimum wage this year, which means that the amount of BGN 610 in force will enter into force in 2020.

This was made clear by the words of Temenushka Zlatanova, head of the Department of Life and Demographic Policy at the Social Ministry.

This can reduce the growing polarization between the rich and the rest, he thinks, quoted by NOVA TV. 

Frans Timmermans, the Socialist candidate for the European Commission's presidency, defended the idea of ​​introducing a minimum wage in Warsaw in all member states. This, in his words, can reduce the growing polarization between the rich and the rest.

Although for the last 10 years the average wage in Bulgaria has grown by almost 90% and the minimum - by 180%, Bulgaria remains the poorest country in the European Union and the inequalities between people continue to deepen. This picture was presented by the President of CITUB Plamen Dimitrov at a conference on social rights.

A European Commission report on the Greek economy released today calls for a swifter implementation of reforms and expresses concerns about the long-term impact on the budget of the government's minimum wage hike.

Romania is confronted with increased risks in the form of the current account deficit deteriorating and the increase of unit labor costs, and the recent government decisions have increased the risks in the financial sector and they could negatively affect private investment, the European Commission shows in the Country Report Romania published on Wednesday.

An 11 percent increase in Greece's minimum wage and the abolition of the so-called subminimum wage paid to young employees which were announced by Prime Minister Alexis Tsipras during a cabinet meeting early this week came into effect on Friday.

The announced increase of the minimum wage to 650 euros a month (gross) has generated concern domestically and abroad regarding the impact on the economy.

The announcement of the increase of the minimum wage, expected this week, is set to create a new social, economy and business landscape in Greece.