Where do government, trade unions and employers differ on the draft state budget?

The National Council for Tripartite Cooperation (which includes representatives of the trade unions, employers and the government) supported, but not unanimously, the three draft budgets - the one of the Health Insurance Fund, the State Social Insurance Fund and the state budget for 2023.

The size of minimum wage will remain at 780 BGN this year and the second year of maternity pay will increase from 1 January next year.

In talks between the government, trade unions and employers, Finance Minister Assen Vassilev proposed that next year employers should cover the first two rather than three days of sick leave. However, it is not clear under what parameters this will happen. The 2024 budget will also stipulate that the poorest pensioners will receive a supplement to reach the poverty line of 504 BGN.

Where do the government, trade unions and employers differ?

As expected, the most disputes between government, trade unions and employers were on the topic of "income" and payments in the social sector. The minimum wage remains 780 BGN and the second year of maternity pay is also increased to this amount, but from 1 January 2024.

The budget envisages a minimum wage of 780 BGN, as it is in the country from 1 January this year, as well as a medium-term wage equal to 50% of the average wage, starting from 1 January 2024," Finance Minister Assen Vassilev said.

"At least for us it is still possible. We see no reason why this money should not be provided," said Plamen Dimitrov, CITUB trade union

"We are witnessing that inflation is slowing down sharply, the growth of the minimum wage is 20%, which is many times ahead of inflation, there is no urgent need to increase the minimum wage in the middle of the year," said Vasil Velev, Association of Industrial Capital.

Thus, in practice, despite the announced strike readiness of the Ministry of Interior employees, the demand for a 10% wage increase in the sector will not be met.

Thus, the drafts for the NHIF budget and the state budget received the approval of six of the seven organisations that participated in the Tripartite council, while five organisations voted for the draft law on the budget of the Social Insurance Institution. CITUB supported it with conditions.

"With some concern and condition - the concern is related to strengthening the pension model and following its philosophy, which was systematically violated, and the condition - to make sure that the minimum unemployment benefit is at least equal to the poverty line," said Plamen Dimitrov, CITUB.

The finance minister told the social partners that the payment of dividends would be done only through a bank transfer in order to limit the grey economy. Salaries of companies with more than 50 employees - also.

"Here we are talking about bringing to light exactly that - we know that there is a common practice to transfer salaries in cash. This, together with the payment of dividends by bank transfer, breaks a vicious practice - to withdraw dividends in cash to pay wages," said Assen Vassilev, minister of finance.

Dr Rozina Mircheva from Rousse, who owns a medical laboratory and has 54 employees, agrees. She pays their salaries by bank transfer.

"I think there are more benefits than inconveniences. Mostly because you don't keep cash, but everything is protected in your card and in this sense I don't know if another issue is being considered, which bothers and irritates me a lot personally, namely that not all commercial outlets have POS terminals," said Dr Rozina Mircheva.

Speaking to the social partners, Assen Vassilev also looked at next year's budget and said that there was a political consensus that employers should cover the first two, not three, days of sick leave.

"This was discussed in Parliament and is set out in the governance programme," Assen Vassilev said.

Dr Mircheva also sees this as a relief for employers.

"It would be a relief for employer,s after all one working day is not a small amount, especially if there are more people using sick leave in the company," she says.

At the beginning of the meeting, Prime Minister Acad. Nikolai Denkov called on all participants to look together for expert solutions and the right long-term policies.

In order to implement the revenues set in the budget, Assen Vassilev said that the revenue agencies are working hard.

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