In connection with the draft decree of the Council of Ministers provided to us for the determination from January 1, 2014 of a new amount of the minimum monthly wage for the country in the amount of BGN 340, on behalf of the Confederation of Employers and Industrialists in Bulgaria, I express no support for the proposed increase in the MPH.
Our reasons for not supporting such a proposed increase in the MRL by approximately 10 percent (9,677 percent) boils down to the following:
· In times of crisis, the increase of the minimum wage is not justified.
· Such an increase should be tied to labor productivity and labor costs.
· The administrative determination of the amount of social security that the business pays will lead to a new release of labor, and above all to the lowest qualified. Given that smaller firms are already staffed at the limits of their efficiency, the likelihood of them turning to the gray sector is real.
· Such an increase will lead to an increase in the pay of low-skilled personnel and will break the differentiation in pay by individual categories of personnel, which will demotivate qualified personnel. It will also be difficult in companies whose method of forming the salary of the employed is based on a percentage relation to the minimum wage for the country.
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