In recent years, the working poor in our country have increased by 50%, and their share has risen from 8 to nearly 12 percent of all those who work. This was announced today by CT “Podkrepa”. And regardless of the fact that the minimum wage has gradually increased over the years, according to the union, the fight against poverty in our country is a complete failure and 48% of households are below the poverty line. KNSB warned that without a balanced approach to the deficit in next year’s budget, there will be protests in many sectors. For his part, Prime Minister Dimitar Glavchev stated that no increase in the insurance contribution is foreseen next year.
Working poor – these are the people in our country whose income is below the poverty line, even though they are working. Some time ago, the government decided that next year’s poverty line will be BGN 638, which is an increase of BGN 112. from the current value – BGN 526.
“We have a 50% increase in the working poor. In recent years, from 8% to 11.6%, which is not good for the state. The people are miserable. We see in the statistics that 48% of households are below the poverty line without social transfers, which is a huge number. This is half the households – something is not being done correctly,” said Atanas Katsarchev, Chief Economist of KT “Podkrepa”.
Until now, CT “Podkrepa” has not received the draft budget for next year. And KNSB warned of protests in many sectors if a balanced approach to the deficit in next year’s budget is not implemented. According to KNSB president Plamen Dimitrov, the Finance Ministry took a step back by rejecting a 3 percent increase in pension insurance:
“The minimum program that we expect to see in the budget for 2025 is a minimum wage of 1,077 BGN, as decided and voted, without obstructions, without any changes, salary growth in the budget systems by at least 10 percent, with some differences – teachers 125% of the corresponding average salary, as there is agreement at the given time from all politicians, an increase in some other salaries in other systems that protest constantly protests everywhere. He who doesn’t get it, let him go to the streets. People have the right and we will lead them, because again I say balance is possible.”
Acting Prime Minister Dimitar Glavchev announced that the draft budget for next year has already been presented to some of the political parties. He confirmed that no increase in the social security contribution is envisaged in the 2025 budget. “Measures are planned to eliminate the looming hole in the budget, but the final decision is still up to the people’s representatives and the Tripartite Council – employers and unions are aware,” said Glavchev, quoted by BNT.
Police officers have already expressed their readiness to protest if their demands for higher wages and better working conditions are not met. The chairman of the trade union, Iliya Kuzmanov, stated in the studio of “The Day Begins” that in order to fulfill their demands for next year, one billion and 200 million BGN is needed for a total of 50,000 employees of the Ministry of Internal Affairs.
What are the main factors contributing to the rise of the working poor in our country?
Interview: Understanding the Rise of the Working Poor in Our Country
Time.news Editor: Welcome, everyone. Today, we’re diving into an urgent issue affecting many in our society—the stark increase in the number of working poor. We have with us Atanas Katsarchev, the Chief Economist from CT “Podkrepa”. Thank you for joining us, Atanas.
Atanas Katsarchev: Thank you for having me. It’s an important conversation to have.
Time.news Editor: Let’s start with the alarming statistic you shared earlier—working poor numbers have jumped by 50% in recent years. How do you interpret this trend?
Atanas Katsarchev: Yes, it’s troubling. We went from 8% of the workforce being classified as working poor to nearly 12%. This means that an increasing number of people are working hard yet still earn less than the poverty line, which is unacceptable in any society.
Time.news Editor: You mentioned that 48% of households are below the poverty line without social transfers. What does this say about the current economic structure?
Atanas Katsarchev: It signals a failure in our approach to welfare and economic support. When nearly half of households cannot meet basic living standards, it demonstrates that our policies aren’t addressing the root issues of poverty and economic inequality effectively.
Time.news Editor: That’s a stark reality. The government has raised the poverty line to BGN 638. How do you view this increase in relation to the needs of the working population?
Atanas Katsarchev: While the increase might seem like a positive step, it still reflects a larger issue. A rise in the poverty line without substantial changes in wages or benefits isn’t enough. We need to ensure that income growth outpaces inflation and that salaries reflect the cost of living.
Time.news Editor: Speaking of wages, the KNSB has signaled possible protests if the budget doesn’t meet certain standards. What are your expectations regarding government action?
Atanas Katsarchev: If the budget lacks a balanced approach and doesn’t focus on proper wage increases and social support systems, protests will likely occur. Our minimum expectation is a minimum wage of BGN 1,077 as a substantial step towards reducing the number of working poor.
Time.news Editor: Prime Minister Dimitar Glavchev has stated there will be no increase in insurance contributions next year. How do you perceive that decision—wise or reckless?
Atanas Katsarchev: It’s a complex issue. On one hand, not increasing contributions may seem like a relief for businesses. However, it could also limit funds available for social programs, pensions, and services for the working poor. It appears to be a short-term fix that could worsen long-term economic health.
Time.news Editor: Considering these challenges, what concrete steps do you believe should be prioritized to combat poverty among the working population?
Atanas Katsarchev: First, we need a comprehensive review of wage structures to ensure they provide a living wage. Second, there’s a pressing need for social safety nets, including improved access to childcare and healthcare. Lastly, fostering an environment where workers can unionize and advocate for their rights is essential for ensuring they aren’t left behind.
Time.news Editor: These insights shed light on a complex issue that affects so many. Thank you, Atanas, for sharing your expertise on such a critical topic.
Atanas Katsarchev: Thank you for the opportunity to discuss these important matters. It’s vital that we keep this conversation going to ensure meaningful change.
Time.news Editor: And thank you to our audience for tuning in. Until next time, let’s stay engaged in promoting awareness and understanding of these pressing social issues.