21.02.2024

PART-TIME MINIMUM WAGE

Undoubtedly, the controversy over the size of the minimum wage raises the question of whether the lowest paid workers have really felt a tangible increase in their living standards over the past decade?

Should the increase in the minimum wage be counted as a kind of merit of the trade union organizations and are the complaints of the employers' organizations that their views on the amounts are not taken into account, or at least not sufficiently?

Where economic interests are conflicting, it is difficult to reach a complete understanding. Employers' organizations assess the increase of the minimum wage as an unbearable burden for business and insist on more transparent rules for determining its amount. According to them, the increase of the minimum wage does not correspond to the growth of the gross domestic product, it puts the border between the minimum and the average unreasonably close wages for the country and may force a number of, mostly small and medium enterprises, to start layoffs.

It is logical that if an employer cannot afford to pay the increased minimum wage to its workers, it will look for mechanisms to reduce its labor costs by getting rid of some of its employees.

As counterarguments in support of increasing the minimum wage, the need to guarantee a decent wage and increase the purchasing power of the population is usually pointed out. The step-by-step increase in the minimum wage should also guarantee a sustainable increase in the standard of living.

Supporters of the idea of a faster increase in the minimum wage, led by trade unions, remind that the minimum wage is not received in the so-called "net amount", but deductions are made from it for taxes and insurance.

If the clearest example of a worker or an employee without previous work experience in the same or similar position is taken as an illustration (i.e. without additional labor remuneration for acquired work experience and professional experience): from BGN 780 minimum wage close to BGN 175 will be deductions at the expense of the employee. In other words, this income really only guarantees a minimum standard of living for physical survival. After all, not only is the minimum wage as an absolute amount insufficient to cover the needs of individuals, but also the tax and insurance burden is high, which further aggravates their situation.

Despite all the disputes, the law still allows the negotiation of wages below the national minimum wage in some cases, such as part-time work. It may be agreed upon between the parties at the time of the employment relationship or subsequently, with an additional agreement. Part-time work can also be introduced unilaterally by the employer as a specific "anti-crisis" measure when reducing the volume of work for a period of up to three months in a calendar year.

The lower limit of remuneration will be determined proportionally to the minimum wage for full-time work, for example, when working 4 hours - 1/2 of the minimum wage, etc.

Contracts for additional work and for work on certain days of the month usually do not constitute a main source of income for the worker or employee. The shorter duration of their work is also reflected in a lower minimum wage.

A special case is the contract for on-the-job training, under which the employer undertakes to train the worker or employee in the process of work in a certain profession or specialty, and the worker or employee - to master it. During the training period, the worker or employee receives labor remuneration according to the work performed, but not less than 90 percent of the minimum wage established for the country. The social justification of this legislative decision is in the lack of experience of the person doing the work, which usually makes his work less valuable from the employer's point of view.

Reference:

Art. 110, 111, 114, 138 and 138a 230 of the Labor Code