22.11.2023

WHAT IS A "ORGANIZATION OF THE SALARY"?

The work done by the employee is remunerated. Labor remuneration is a monetary payment from the employer to the employee for the labor provided.

What is the organization of the salary and does the employee have the right to be informed about the methods of planning, the order of its determination and amendment?

In Bulgaria, issues regarding labor remuneration (salary) are extremely important for two main reasons - the low incomes of people, who are extremely sensitive to the fact that, for the same work, their colleagues in companies outside our country often receive many times more high reward. The second reason is that workers are often not aware of how their salary is determined because no one informs them about these and other details.

As a matter of fact, workers should be aware of and have the right to access one of the internal acts of each company, namely the internal rules for the salary, in which all the details are clarified. Another question is whether what is described there is fair, based on the specific numbers set in relation to the economic needs of individual workers and employees in different positions.

We will make some preliminary clarifications on the subject.

All professions and positions in Bulgaria are described and categorized in the National Classification of Professions and Positions, which divides the positions into 9 classes depending on the education and qualification required to occupy a certain position, with class 1 positions requiring the highest educational qualification and should be the highest paid, and for class 9 – the lowest educational qualification and therefore should be the lowest paid.

Payment of wages is the primary obligation of an employer and is paid in cash. The periodicity of salary payment is agreed between the employee and the employer in the employment contract. Unless otherwise agreed, the remuneration is paid twice every month (advance and final payment). It is also important to note that the salary is paid personally to the worker or employee.

Exceptionally, it can also be paid to other persons, but for this to happen, the employee must make a written request to the employer. The persons who can receive the labor remuneration are only those close to the employee, and the purpose of this restriction is to avoid abuse by ill-intentioned persons.

The salary is the basic remuneration for the worker, and to it can be added other, additional incentives for the worker such as bonuses in the form of vouchers for food and other purchases, private health insurance, in addition to the mandatory health insurance paid by the employer, and others.

The organization of the salary in enterprises is regulated in internal rules for the salary, which are an internal act of the enterprise. These internal rules for the salary are approved by the employer and cannot contradict the legal acts and the conditions agreed in the collective labor agreement.

Internal rules for the salary must include:

- general conditions for the organization of the salary in the enterprise;

- determination and distribution of salary funds;

- determination of minimum values or ranges of basic salaries by job level;

- the procedure and method for determining and amending the additional remuneration.

Internal rules for the salary may also include:

- systems and methods for evaluating jobs and positions;

- grouping of positions by job levels and qualification and educational requirements;

- rules and procedures for determining and amending basic wages;

- rules and procedures for evaluating work performance;

- labor payment systems;

- rules and procedures for determining individual wages;

- the procedure for collecting, processing, storing and using information and documents necessary for the calculation of the due gross and net labor remuneration;

- the order and method of payment of the salary.

 

Reference:

Art. 22 of the Ordinance on the structure and organization of the salary