Bulgarian employers say: Minimum insurance thresholds are unnecessary and harmful

The Association of Bulgarian Employers (AOBE) sent a letter to the Minister of Labour and Social politics Biser Petkov, to express their concern with the tension that has been created by the Ministry's intention to impose administrative power over the determination of Minimum insurance thresholds for the coming year.

Minimum insurance thresholds, determined by a position and economic activities, are only to be found in Bulgaria and nowhere else in the EU. The AOBE points that out in that letter and calls it "administrative weight". Which comes as a suprirse, in the light of the government's promises to cut on administrative weight put on private companies. The minimum insurance threshold in Bulgaria is defined by merit - the main being the position taken and the money received. According to national law the minimum threshold is 480 BGN for an 8-hour work day - even if employers pay their employees less, they are obliged to pay insurance covering the minimum wage of 480 BGN, which they do - so it is hard to investigate fraud and employers, who allegedly pay their employees less, than their contract states.

The AOBE says they are waiting on the ratification of Convention C131 of the ILO, that should put new standards on the process of figuring out minimum wages. In fact, discussion on both fronts has been very difficult, because the MLSP and the AOBE don't see eye to eye on any of those subjects. 
Administrative pressure on business is doing more harm than good according to statistics from the AOBE. Minimum wages work better when they are subject to negotiations of employers and employees, because when calculating wages many factors are taken into account - something that the Ministry of Labour does not do. 

(Picture taken from: www.snews.bg ) 

Vasil Manev

Vasil Manev is a student in Computer Science and an aspiring columnist, studying in Heidelberg, Germany.

Comments (0)

Like Our Page on Facebook

Like our page to make sure you see all of our NEW articles!

Click to

Sign Up For Our Newsletter

Subscribe and stay informed about all important events!