2024-09-26 23:06:29
KNSB with requests for priority policies to the next government. They are aimed at economic and income policy, social security, the green and digital transition and the labor market.
The trade union proposes changes in the tax policy – restoring the VAT rate for all sectors to 20%, increasing the corporate tax to 15%, as well as the “Total Income” tax, but with the introduction of a non-taxable minimum.
KNSB insists on an increase in the maximum insurance income by 14% and next year it will be BGN 4,275. The so-called “Swiss rule” should continue to be used when determining pensions and next year it will increase by 8.7%.
The minimum unemployment benefit should increase from BGN 18 to BGN 21. The unions also want a gradual increase in contributions to the “Pensions” fund and the second pillar of the pension system by 1% in one year. The goal is to increase the contributions to the two funds to reach 10% in the next 20 years.
Accelerated steps for the country’s accession to the Eurozone, the Organization for Economic Co-operation and Development and the land-based Schengen area are requested by the CNSB.
“Through these opportunities, which will be given to us there, the GDP of the population will reach at least 67% of the average European levels”, explained the president of KNSB Plamen Dimitrov.
They expect the caretaker government to use an official methodology for calculating the “Living Wage” according to the ILO methodology, which measures the costs of food, education, health care and housing.
“Everyone, including our trade union organizations, joined the MRZ and SRZ and shout – we must be on top – this is disastrous. This will destroy us. There is no way it can withstand either the budget or the labor market”, explained Plamen Dimitrov.
The unions are demanding an increase in unemployment benefits for next year and entered into an absentee dispute with the employers.
“The claims that when the minimum wage becomes BGN 1,077 and increases, it will become 80% of the minimum wage in Vidin, are false. As of January 1, the ratio to the then average was 56-57% in the cities with the lowest average wages, and by March- April, this ratio will have fallen below 50% on average annually, we will still not be at 50% and at the moment we are not just there is a big lag”, said Luboslav Kostov, who is the chief economist of the Central Bank of Ukraine.
“When statistical data are used, they are used for a past period and with a certain delay. The formula by which the MRZ is calculated, in our opinion, does not correspond to international acts that Bulgaria has ratified Convention 131 of the ILO, which says that the MRZ must be determined on the basis of socio-economic criteria. In the formula basic MRZ of 50% gross average salary, no economic criteria are reflected”, explained Dobrin Ivanov, who is the executive director of AIKB.
According to unions, it is domestic consumption that is driving economic growth in the country, while employers point out that its rapid growth is also leading to an outflow of investors and more gray economy.
“The reason that economic growth is currently 1.9% in the second quarter, and not 0.8% as it is in Europe, is that consumption is driving growth in Bulgaria,” added Kostov.
“What we have also pointed out is that the immeasurably rapid increase in the unemployment rate has significant negative consequences for the labor market and for the economy of Bulgaria. First of all, some foreign investors announced the closure of their production bases in the country, to destinations where they offer -low MRZ”, commented Ivanov.
The KNSB insists on a reform of insurance contributions for pensions.
“From next year, an increase in the insurance contribution, every year by one percentage point,” said Plamen Dimitrov, quoted by BNT.
The ultimate goal is to stabilize the capital schemes by 2045, whereby the State Fund “Pensions” will provide 55% replacement of the last received income, the second pillar will give 15-20 percent, and the third – an addition of 10 percent. Thus, the retired person receives between about 85% replaced income as a pension.