15.12.2021
THE MINIMUM WAGE IN THE BALKANS
With a minimum wage of 332 euros in 2021, Bulgaria is at the bottom of the European Union. But what does the comparison with our neighbors, some of whom are not members of the Community, look like?
The undisputed leader with the highest salary in the region is Slovenia, where the minimum wage is 1,024 euros. At the other pole is Turkey, where the devaluation of the Turkish lira has reduced the minimum wage to the equivalent of 229 euros at the current exchange rate. The minimum wages in Albania are lower than in Bulgaria, where workers earn at least 244 euros, and in Montenegro, where the minimum gross wage is 331 euros, according to current Eurostat data.
The following is a more detailed reference by country on the amount of the minimum wage in the Balkans:
TURKEY is the country where the euro's minimum wage has fallen the most in recent years. In 2016, workers in the country received a minimum gross wage of 519 euros, while currently the minimum wage of 3,600 Turkish lira amounts to only 229 euros (347 euros according to Eurostat statistics for the second half of 2021). Pure Turks take between 2,826 Turkish lira (171 euros at the exchange rate per day) and 3,014 Turkish lira (182 euros), depending on their marital status, but negotiations are under way to increase the minimum net salary to 3,500-4,000 pounds next year (212-242 euros). ). Under the influence of the huge devaluation of the Turkish lira, which has lost more than 40 percent of its value since the beginning of the year, the minimum wage has changed significantly and only in the last year, measured in European currency. In January this year 3,600 Turkish lira amounted to approximately 400 euros.
Things are better in terms of purchasing power. Taking into account the difference in price levels, the minimum wage in Turkey is equivalent to 1,040 euros compared to 596 euros in Bulgaria, 587 euros in Montenegro, 422 euros in Albania, according to Eurostat data on minimum wages, expressed in purchasing power parities. .
However, the consumer basket of those working on the minimum wage has shrunk in the last year - by October the number of breads that could be bought with the minimum wage decreased to 332, ie. by 65 compared to January. For pasta, the reduction is 109 packages, for tomatoes 80 kg, for chicken 44 kg, for cheese 19 kg, according to data from the Turkish Statistical Institute, quoted by the opposition.
With a minimum gross salary of 331 euros, MONTENEGRO is also below Bulgaria in the ranking of Balkan countries. The country's minimum wage has not changed since 2019, but the government has said it plans to increase it next year. According to plans, the net minimum wage in 2022 should increase to 450 euros from 250 now.
In ALBANIA, the minimum gross wage is estimated at 244 euros (about 214 euros net salary). A few days ago, Albanian President Ilir Meta returned to parliament for revision of the 2022 budget, citing the fact that it does not provide additional economic assistance to more than 258,000 citizens living on $ 0.7 a day. The budget plans to increase the minimum wage in Albania to 32,000 leki (262 euros).
In the REPUBLIC OF NORTH MACEDONIA, workers receive a minimum of 359 euros gross per month. The unions are demanding that the minimum wage be increased to at least 60 percent of the national average, or 18,000 denars (293 euros net), and that all other wages be raised in stages in accordance with collective agreements. The Minister of Economy, Kresnik Bekteshi, recently spoke about the increase in the minimum wage, announcing that it would increase to 18,000 denars.
The minimum wage in the country was introduced in January 2012 by VMRO-DPMNE and then amounted to 8050 denars, except for the textile and leather industry - sectors in which this amount was reached only in 2015. The last legally approved minimum wage was adopted in 2019 when it was set at 14,500 denars net, but with the updating of income with living expenses it reached 15,401 denars (250.5 euros net).
In SERBIA, where the gross wage is 366 euros, minimum wage earners receive a mere 32,000 dinars (273 euros), an amount that covers 81.5 per cent of the consumer basket. About 350,000 people earn their living on the minimum wage in Serbia, but unions say the number of people living on the country's minimum wage is probably twice as high. According to official figures, they make up about 15 percent of all workers.
Serbia's minimum net wage is expected to increase by 9.4 per cent next year to exceed 35,012 dinars (almost 300 euros). Finance Minister Sinisa Mali said that according to the "Serbia 2025" plan, the minimum wage will be equal to the price of the minimum consumer basket by the end of 2023.
Calculations by the Union of Independent Trade Unions show that with the proposed increase, a family of three will be able to spend 530 dinars a day on food (4.5 euros) a month.
In CROATIA, which plans to adopt the euro on 1 January 2023, the minimum gross wage is 567 euros. Purely Croatians received 425.5 euros in 2021, and the minimum net salary is expected to increase to 500 euros from January 1st next year.
In ROMANIA, the minimum gross wage is 2,300 lei (464 euros at the exchange rate of the day or 467 euros in Eurostat statistics for the second half of the year). Purely Romanians, who have an education and one year of work experience, receive a minimum wage of 1,413 lei for their work, ie 286 euros. That's enough to buy two hundred and eighty loaves of bread, 70 kg of pork, 706 kg of potatoes or 47 kg of cheese. If the person has no education, the net salary falls to 1386 lei (280 euros). Nearly 1.3 million people out of a total of about 5.6 million workers receive it.
Every Romanian needs 2,818 lei (569 euros) a month to live a decent life, according to trade unions and NGOs. 516 lei (104 euros) are spent on food, 206 lei (41 euros) on clothing and 230 lei (46 euros) on overheads, according to the Declick Civil Movement. The monthly expenses of a family with two children amount to 7,278 lei (1,470 euros).
Romania's working poverty is 15 per cent, while the average European working age poverty rate is around 8.2 per cent, according to Romanian government officials.
The new broad coalition government plans to increase the minimum gross wage from January 1, 2022 to 2,550 lei (515 euros). From the increase of 250 lei gross, people will actually reach 138 lei (nearly 28 euros).
In GREECE, the minimum wage was 758 euros gross in 2021. However, from January 1 next year, Greeks will receive a minimum of 663 euros net (compared to 650 now) after the entry into force of a 2 percent increase in the minimum net wage. However, given that due to the Easter and Christmas bonuses in Greece, workers receive 14 salaries per year, this makes the minimum wage actually 773 euros per month.
In addition, the lowest minimum wage rate in the country applies only to newly hired persons without length of service, while there is a table that calculates the amount according to the years the employee has worked and his marital status. As a result, the minimum wage for workers with a family and more seniority can be increased by up to 195 euros, and in the highest category - for family employees with more than 9 years of service reaches 928.20 euros. The lowest hourly rate since the beginning of the new year will be 29.62 euros.
Last year's deflation, as well as declining social security contributions, increased the purchasing power of minimum wage earners by about 250 euros a year, according to estimates by the Greek Ministry of Labor, but rising inflation threatens to reverse that situation. In November, inflation in Greece, according to Eurostat, reached 4.3 percent - well above the planned increase in the minimum wage.
Among a total of 21 EU member states with a regulated minimum wage, Greece is in the middle of the ranking in terms of its size. It ranks 11th in terms of the nominal value of the minimum wage and 13th in terms of its purchasing power.
SLOVENIA ranks first among the Balkan countries in terms of the minimum gross wage. In the country that adopted the euro in 2007, the minimum gross wage is 1,024 euros. This amount covers 120 percent of the minimum cost of living.
15.12.2021
HOW TO DETERMINE THE AMOUNT OF UNEMPLOYMENT BENEFIT
How is the amount of the unemployment benefit determined and are there any peculiarities for determining it in some individual cases?
The daily unemployment benefit is 60 percent of the average daily wage or the average daily insurance income on which insurance contributions have been paid or are due for the Unemployment Fund for the last 24 calendar months preceding the month of termination of insurance, and cannot be less than the minimum and greater than the maximum daily amount of the unemployment benefit determined by the State Social Insurance Budget Act for each calendar year.
The minimum and maximum amounts of the compensation determined for 2021 are BGN 12.00 and BGN 74.29, respectively.
When the period from which the average daily remuneration or the average daily insurance income is determined includes time which is considered as insurance length of service without social security contributions or during which the person is not insured for unemployment, when determining the insurance income:
- for the time of paid and unpaid leave for raising a child, of unpaid leave for temporary incapacity for work and for pregnancy and childbirth and of unpaid leave of up to 30 working days in one calendar year - the average daily minimum wage for the country for the respective period;
- for the period of paid leave for temporary incapacity for work and for pregnancy and childbirth, as well as leave for adoption of a child up to 5 years of age - the income from which the monetary compensation is determined under the legal relations under which the person is insured for unemployment;
- for the time, considered for insurance length of service under the legislation of another state on the basis of an international agreement to which the Republic of Bulgaria is a party - the average daily minimum wage established for the country for the respective period;
- for the time during which the person is not insured for unemployment - the average daily minimum wage for the country for the respective period.
Unemployment benefits are granted, amended, refused, suspended, terminated, resumed and restored by order of the official entrusted with the management of unemployment insurance or another official appointed by the head of the territorial division of the National Social Security Institute. The order shall be issued within 14 days from the acceptance of the application or from the declaration of the respective circumstances.
An official may amend or revoke an order which has entered into force where:
- new documents or evidence have been submitted that are relevant for determining the right, amount and period of monetary compensation;
- the monetary compensation was incorrectly granted or incorrectly refused.
The same official shall also issue an order for the recovery of bona fide and unscrupulously received unemployment benefits.
Reference:
Art. 54b, para 1 Social security code,
Art. 54b, para. 7 SSC
Art. 54g, para. 1-3, art. 54e, para. 4 SSC,
Art. 11 of the State Social Security Budget Act for 2021
Art. 5, para. 1 Ordinance for granting and payment of unemployment benefits
15.12.2021
UNEMPLOYMENT REACHED 4.8% IN NOVEMBER
The registered unemployment rate in Bulgaria in November was 4.8%, according to data from the Employment Agency. Compared to the previous month it increased by 0.1 percentage points and decreased on an annual basis by 1.9 percentage points. Compared to the end of November 2019, which was a record in terms of employment, the unemployment rate also decreased significantly - by 1.0 points.
The registered unemployed at the end of November were a little over 158 thousand, which is about 3 thousand more than in October and 60 thousand less than a year earlier.
In November, 24,650 new unemployed people registered with the labor offices, which is 682 less than in the previous month, and compared to November 2020 there was a decrease of 4,455 people. Another 416 people from the groups of jobseekers, students and retirees also registered with the Employment Agency during the month.
In November, just over 13,000 unemployed people started working. This is about 2,000 fewer people than in October and 4,000 less than in the same month last year, which corresponds to the more limited demand for new staff during the winter season and the reduced number of registered unemployed. Another 199 people from the groups of pensioners, students and employees have found a new job through the employment offices.
75% of those who started work in November are employed in the real economy, most of them employed in the manufacturing sector - 22%, followed by trade - 18%, hotels and restaurants - 6.7%, government – 5.6%, construction - 5.3%, administrative and support service activities - 4.5%, etc.
A total of over 3,200 unemployed people from the risk groups were employed in subsidized jobs during the month - under employment programs and measures and under schemes of the OP "Human Resources Development".
The "Employment for you" scheme, which started in October 2020 as an anti-crisis measure, has provided employment to just over 41,000 unemployed, and in November alone employment contracts were signed with 2,190 new unemployed.
The number of jobs advertised on the primary labor market in November was 10,109, or 1,646 less than in the previous month and 2,277 less than in the same month in 2020, which is typical for the autumn-winter season.
The largest share of vacancies in the real economy is declared in the manufacturing industry (30%), followed by trade, repair of motor vehicles and motorcycles (13%), administrative and support service activities (10%), hotels and restaurants (9%) management (7%) and education (5%).
The most sought-after professions in business during the month are: machine operators of stationary machines and equipment; sellers; security and protection personnel; skilled workers in the production of food, clothing, wood products and related; personnel employed in the field of personal services; workers in the mining and processing industry, construction and transport; metallurgists and others.
15.12.2021
COMPETITION BETWEEN PENSION COMPANIES WILL INCREASE
Attitudes towards the activities of pension insurance companies remain positive and optimistic until the end of this year, despite expectations of a slowdown in economic growth and a recovery in employment. We read this in the publication "Financial Sector: Estimates and Expectations" prepared by the Ministry of Finance, which presents the expectations of a wide range of financial intermediaries in terms of key macroeconomic indicators and factors related to their activities.
The summary estimates of these companies show that the assets in both the supplementary mandatory pension funds and the supplementary voluntary pension funds will continue to grow.
The optimism of the insurance companies is justified. Moreover, in the third quarter the accumulated net assets in the supplementary pension funds continued to grow. As a result, at the end of September this year they reached BGN 18.8 billion, as their annual increase was in double digits (+14.4%), and compared to the second quarter of the year the increase was 2%.
The forecast is that the number of insured persons will increase in the last quarter, as expectations for those in the supplementary voluntary pension funds are more optimistic than in recent months.
The pension companies also forecast that the value of one share in the additional mandatory and voluntary pension funds will be higher in the last quarter of this year.
The figures show that the market share of universal pension funds in the amount of their net assets did not change significantly in the third quarter, and competition between pension insurance companies will increase significantly compared to estimates from the beginning of the year.
15.12.2021
HOW TO PREVENT BURNOUT OF EMPLOYEES
Burnout of employees is a crucial factor for employers and they must also work hard to prevent it.
The online edition of business2community.com looks at some of the reasons for burnout and what we can do to prevent it.
How engagement prevents/causes employee burnout
Everyone knows that you have to work hard if you want to be successful, but that has its limits. You can depress the accelerator too much, take a break and end up with a heavy burnout. So all your work can be counterproductive.
The first step to preventing burnout is to find out what is causing it.
It is important to have a balance in life between all the emotional and physical needs of people, as well as meeting the requirements for professional development.
Burnout occurs when there is a mismatch between needs and requirements. For example, a burnout can happen to an accountant who is looking to make new friends, but whose work offers few opportunities to do so. Or a manager who does not like to be central or in a leadership role. In both examples, there is a mismatch between the individual needs of employees and the requirements of the job.
Practical consequences of burnout
When your daily responsibilities meet your emotional needs and your career plans, you will resist burnout. It is good to start with self-inventory. Of course, things get a little more complicated here, but it's still worth asking the following questions:
What motivates you? Think about the tasks or responsibilities that make you feel most energetic and those that make you feel the worst.
Which daily activities or responsibilities exhaust you the most? These will be the things you fear most.
How emotionally satisfied does your job really leave you, and do you think it takes a change of position to have a truly satisfying work life?
How well do the personality types and internal motives of your employees match their responsibilities? If your team lacks motivation or energy, it may be due to the fact that you have given all the wrong roles.
Interventions that prevent or correct such inconsistencies can increase workplace well-being and reduce the risk of burnout.
Steps to prevent burnout in employees
According to new research published by the US Bureau of Labor Statistics, today's employees are overworked and overworked. This is a critical issue not least because it affects the end result of your business. Overworked and overworked employees are simply not as productive, as energetic or as creative.
The way to overcome burnout is through commitment. Bring your employees to a better understanding of the big picture and their place in it. Employees will not feel overwhelmed by ungrateful work when they see what the vision is and how their role matters.
Provide your employees with someone they can talk to. Employees who feel alone are more likely to feel burned out. Create small discussion groups in your company to help employees feel connected to each other and have a broader sense of community. Discussion groups should be safe places where everything can be said.
Don't neglect the little things. Encourage your employees to take breaks, go for a walk around the office, leave early on Friday or, if necessary, decorate the office for the holidays. These little things help stressed employees feel a little more valued.
Keep the focus on productivity. Things like how many hours your employees spend in the office don't really matter; these are not significant indicators. Focus on how they achieve the company's broader goals.
14.12.2021
ROMANIA: BULGARIAN WOMAN WITH A BLUEBERRY PLANTATION
Bulgarian Veneta Yorga lives in Romania and together with her husband produces the so-called American cultivated blueberry. They have a small plantation of 40 decares at the foot of Mount Fugaras, Julia Bahovski, creator of the only information portal for Bulgarians in Romania MyRoBiz, told BTA.
Every year at Christmas our compatriot makes gift baskets that contain family products - jam, syrups, compotes and even blueberry brandy.
Veneta was born in Plovdiv. He is an economist by education. She has been living in Bod, Brasov for 13 years and is the mother of two children - Mia and Alex. "I never thought that one day I would start a family in Romania.
Before I met my husband, whom we met at sea in Bulgaria and fell in love at first sight. Initially I was attracted by Brasov, which is very similar to Plovdiv on the hills and the Old Town. That's how I came, as if only as a guest, but I stayed," Veneta told MyRoBiz.
The following is part of Julia Bachowski's interview with Veneta Yorga.
Question: What were the main challenges you faced in the beginning and how did you overcome them?
It was quite difficult at first because I didn't know the language. The nostalgia for Bulgaria was huge. I had just finished my master's degree, I was trying to find a job in Brasov, but I couldn't. Proficiency in English and Russian was not enough.
In the second year, after a summer in America, and after many ideas in my head about what to do, I decided to open a representative store of a Bulgarian perfume brand in Brasov. I imported their products directly from their factory in Plovdiv. That's how I managed to visit my parents there. The following year I opened another store and so, talking to my colleagues and meeting many different people, I started learning the language very quickly. Along with the shops and now with one child, I helped my husband with accounting and administrative work in his business - then he was a partner of a famous telecommunications company.
So, for years, we managed to create a home, family, business together. But the stress was not small (at one time we even had 40 agents - brokers in six different cities), which made us calm down and take a different direction. Namely - agronomy. Obstacles and bureaucracy are everywhere, but opportunities are everywhere - you just have to find them.
Question: Could you tell us more about your business?
Our business is based mainly on the wholesale export of blueberries, but in the last three years we have also emphasized the local plan of distribution to end customers in Brasov - consumers, as well as many local confectioneries, small and large stores. We have contracts with companies from Bulgaria, Poland, Italy, which buy in bulk from us during the blueberry season. This fruit is relatively expensive, but very useful, especially for diabetics, a strong antioxidant and immunostimulant. More and more people are beginning to learn about its qualities and the consumption of blueberries is growing. But at the same time more and more new plantations are appearing, the competition is not small. Three years ago, we were one of the few producers who delivered fresh blueberries and a mix of fresh fruits to the home and office here in Brasov.
During the pandemic period, however, this type of distribution became more widespread. And to keep our regular customers, we started processing blueberries into jam, syrups, natural juices. We offer frozen, dried dehydrated blueberries, blueberry liqueur (affine) and blueberry brandy. But our business is not limited to blueberries. We are currently working on a new and quite large project in the field of fishing and tourism, which has long been our dream.
Question: What makes Romania attractive for living and doing business?
In Romania, people are not afraid or afraid to try and succeed. Here you can really see the higher standard of living, not only because of the minimum wage, which is higher than the Bulgarian one, but also because you can feel the positivism and professionalism that are appreciated.
14.12.2021
HOW WILL THE PENSIONS FROM CHRISTMAS BE RECALCULATED?
From December 25, 2021, important changes in the pension legislation will come into force, which will affect the amount of labor pensions. From this date, the amount of all pensions related to employment, which are granted with a starting date after December 24, 2021, will be calculated with a new weight for the years and months of service without conversion, the NSSI announced.
Until the amendment, a percentage of 1.2 for each year of insurance experience is applied, which from December 25, 2021 increases to 1.35 percent for each year of insurance experience without conversion, as well as the respective part of these percentages - for each month of insurance experience.
For pensioners who have insurance length of service under the conditions of the first and/or second category of work, the difference between their total length of service converted to the third category of work and their length of service without conversion continues to participate in determining the amount of pension by 1.2 per cent for each year of insurance experience and the respective proportional part of this percentage - for the months of insurance experience.
In view of the equality of pensioners, as of December 25, 2021, the NSSI will recalculate ex officio more than 2,000,000 pensions and allowances (including seniority and old-age pensions, disability pensions, survivors' pensions and widows' allowances) granted with starting date until 24 December 2021, inclusive, and in this recalculation the higher weight will be applied for each year and month of insurance without conversion.
The recalculation of the pensions will be carried out without changing the income from which each of them is calculated, after which its amount will be updated, recalculated and indexed in accordance with the legislation in force from the date of its granting until December 24, 2021 inclusive. The recalculation will be carried out only if it is more favorable for the pensioner.
Otherwise, the amount of the pension received until the date of the recalculation will be retained.
Individuals will start receiving the recalculated amounts of their pensions with the regular monthly payment for January 2022, and the difference between their old and new amounts for the seven days from December 25 to 31, 2021 will be paid to them.
An order will be issued for the recalculation of each pension, which will be served on the person upon request. Depending on the pensioner's wishes, the service can be performed on site at the reception of the respective territorial division of the NSSI, through a licensed postal operator by registered letter with acknowledgment of receipt or through the Secure Electronic Service System of the State Agency for Electronic Government.
Persons with a Personal Identification Code (PIC) of the NSSI will be able to make a reference to the provisions concerning their pensions on the NSSI website after the beginning of January 2022.
From December 25, 2021, the minimum monthly amount of the pension for insurance length of service and age granted to persons who have completed the full insurance length of service required by law at the time of retirement shall be increased from BGN 300 to BGN 370.
On the basis of this amount, the minimum amounts of other types of pensions related to employment are determined, such as:
With the forthcoming changes, the pensioners who receive the minimum amount of the respective type of pension will reach 1,044,000 compared to 892,000 at the moment.
The maximum amount of one or more pensions received without supplements to them also increases - from BGN 1,440 to BGN 1,500. Thus, pensioners whose pensions are limited to the so-called "ceiling" of pensions will increase from about 27,500 to over 34,000.
It is expected that while maintaining the current parameters of the macro framework, the average amount of pensions from BGN 537.50 this year will increase to BGN 580.50 in 2022, which is an increase of about 8%. The accounts also include the one-off supplement to pensions paid in 2021 to all pensioners, known as the "covid supplement".
13.12.2021
DO WE HAVE THE RIGHT TO MORE LEAVE IF WE HAVE DISABILITY
What are the peculiarities of the organization of the leave of the employees with reduced working capacity of 50 and over 50%, what is their amount and can additional days be agreed?
According to the Labor Code, employees with permanently reduced working capacity of 50 and over 50% are entitled to paid annual leave of at least 26 working days.
That is, these persons are entitled to 6 working days more than the normal basic paid annual leave, established in the minimum amount of the Labor Code of 20 working days, due to the fact that they have permanently reduced working capacity.
The leave to which employees with permanently reduced working capacity of 50 and over 50 percent are entitled is, in essence, basic paid annual leave and is used on a specially provided legal basis (the 26 working days include 20 those working days under Article 155, paragraph 4 of the Labor Code).
A larger amount of this type of leave can be agreed in the collective agreement, as well as between the parties to the employment relationship.
The envisaged paid annual leave, in the amount of not less than 26 working days, is the main one for the employees with 50 and over 50 per cent lost working capacity and they are entitled to it separately and regardless of their right to additional paid annual leave for irregular working day.
According to the law, the employer, after consulting with the representatives of the trade unions and the representatives of the employees, may establish for some positions a non-standard working day, due to the special nature of the work.
With his order the employer determines the list of positions for which a non-standard working day is established. Employees for whose positions the employer has established a non-standard working day, if necessary, are obliged to perform their work duties after the expiration of the working hours.
Their "more" work is compensated by additional leave, and when the need requires work on weekends and holidays - with increased remuneration for overtime work. The minimum amount of additional paid annual leave for non-standard working day is 5 working days, and a larger amount can be agreed in a collective or individual employment contract.
Therefore, if the person's position is included in such a list, he will be entitled to additional paid annual leave of not less than 5 working days, but more if agreed in the collective or individual employment contract.
In conclusion, it should be borne in mind that the planned paid annual leave of at least 26 working days is essential for employees with 50 and over 50 percent disability and they are entitled to it separately and independently from their right to additional paid annual leave for a non-standard working day, established in the provisions of the Labor Code.
Reference:
Art. 155-156 of the Labor Code
Art. 139a of the Labor Code
Art. 319 LC Art. 7 of the Labor Code
13.12.2021
REGIONAL PROFILES 2021: DEVELOPMENT DURING A PANDEMIC
For the last year, the Institute for Market Economics has been presenting "Regional Profiles: Indicators of Development" - the only almanac of its kind on regional development in Bulgaria. The study is based on 66 indicators, which are evaluated by the economic and social community in the 28 regions of the country.
Economic development
The regional map of economic development in Bulgaria continues to be dominated by large economic centers. In 2019, the gross domestic product (GDP) of Sofia (capital) will reach over BGN 51 billion, which is close to 43% of the economy of the country. Outside the capital in Southern Bulgaria, the regions of Plovdiv (BGN 9.7 billion), Burgas (BGN 5.5 billion) and Stara Zagora (BGN 5.1 billion) appear. In the north it occupies a leading position Varna (BGN 7.7 billion), followed by Ruse (BGN 2.8 billion) and Veliko Tarnovo (BGN 2.6 billion). The small scale of the economic centers in Northern Bulgaria - with the exception of Varna, as well as the weaker connection between the two countries and the country.
The total value added per person from the population of the region is over 33 thousand. BGN in Sofia (capital) up to 7 thousand BGN in Silistra. Sofia's economy is heavily dominated by services, which account for nearly 87% of the value added. The capital has run over twice as many major economic centers - Varna, Stapa Zagopa and Plovdiv. In the second place in the country comes the region of Sofia, which includes the industry in the immediate periphery of the big capital city, but also in the country. In the region of Sofia, the industry plays a significant role in the regions of Stapa Zagopa, Bpaca and Gabpovo. The total economy is over 10% of the added value in the regions of Silistra, Vratsa, Montana, Razgrad, Dobrich, Targovishte, Shumen and Yambol. We can see that these are relatively poorer areas, located mainly in the northern part of the country.
The pandemic is breaking the positive dynamics on the market in Bulgaria. After for the first time in the recent history of the country the employment rate of the population aged 15-64 exceeded the limit of 70% (2019), in 2020 there was a decline in employment to 68.5%, with negative processes covering. Due to the pandemic, however, the great differences on the market are still being preserved. While large economic centers account for employment rates of around 70% or more, the poorer are far behind. All five areas with an occupancy rate of less than 60% are located north of the mountain range. The regions of Varna, Ruse and Veliko Tarnovo are the best in terms of employment in Northern Bulgaria. It is necessary to take into account the very strong representation in the Sofia district, which for the second time last year has overtaken the capital. The sustainable indicators of the labor market in Sofia district are supported by the very good development of the industry in the wide periphery of the capital, as well as by the stability of large companies in Srednogorie, which successfully pass the initial shock of the pandemic and keep their jobs.
Due to the negative effect of the pandemic on the current market, some positive developments in 2021 will be reported. In 2021, the average monthly salary in the country exceeded BGN 1,500, and the rate of adjustment is over 10% on an annual basis. At the regional level, the average annual salary varies from over BGN 2,000 in Sofia (capital) to about BGN 1,000 in the regions such as Blagoevgrad and Kyustendil. At the same time, he is observing and recovering on the market, so that the unemployed is gradually starting to return to the field. The continuing waves of coponavipyca and the resulting restrictive measures for social life and economic activity, however, are underway.
The human capital and the profile of the labor force will be key to the process of recovery and the continuing transformation of the Bulgarian nation. Nearly 30% of the workforce (24-64 years) has higher education, and in recent years this share has increased. The categorical leader is Sofia (capital), in which 56.8% of the workforce is highly educated. The next place is Pyce (31.2%) and Beliko Tupnovo (29.7%), which traditionally represents a strong indicator. In almost half of the regions in the country, the share of people with basic and lower education in the labor force is greater than the share of the work of the university. The share of the population with the main and lower education in the districts of Targovishte, Sliven, Kardzhali, Silistra, Pazgrad, Montana and Shumen remains high.
In 2021, despite the pandemic wave, the pandemic is focused on the recovery of the economic pact and the change of the region. Technological and technical transformation of the industry, incl. The changes in the supply chain, as well as the introduction of digital services, will continue to be the leading factors for local development. The big challenge ahead of time will be investment, which is still being pushed back by unscrupulous economics and politics. The strategic planning of the municipalities for the period 2021-2027, as well as the efforts of the major economic centers to attract investors and develop industrial areas, can play a positive role and support the transformation of the economy. In these efforts, the communities need support and, most of all, real steps for financial decentralization.
Social development
In the last decade, the population of 26 regions in the country is declining. Only in Sofia (capital) and in Kardzhali there is a reverse trend. In recent years, the presentation of Kardzhali has been very strong, as almost all populated places in the region are marked by the influx of people. The maritime districts of Varna and Burgas report a slight decline, but maintain a steadily positive mechanical balance and have the potential to turn the demographics around. Until the onset of the pandemic, it was the mechanical force that distinguished the strong economic centers, which managed to attract young, active and active people. In 2020, however, there will be a change caused by the pandemic and the imposed restrictive measures. On the one hand, many Bulgarians are coming from abroad, and on the other hand, there is a migration of the population from the big cities to the small ones.
In 2020, all major cities, including Sofia, Plovdiv and Bapna, will report a negative mechanical impact, i.e. in them there is an outflow of population. At the same time, a total of 205 municipalities are celebrating a positive mechanical situation, which is unprecedented in the new history of the country. During the year of the pandemic, the regional centers are losing their population, while the peripheral communities are registering the flow of people. Despite this adjustment due to the pandemic and restrictive measures, long demographic trends tend to remain unchanged, with strong economic centers in the best position to attract young and active people.
The situation is also severely affected by the onset of the pandemic, as in large periods of time during the last two years of the school year. Due to the fact that the general balance of the educational imbalances in the country is preserved. The highest results of the state criminal exams in Bulgarian language and literature in 2021 are marked in the capital Sofia (4.58), Smolyan (4.44) and Varna (4.44). In the region of Sofia (capital) and Smolyan for the past year there has been a very low share of weak estimates. In total, ten regions are registered with the results of the state exams in Bulgarian language and literature under the border of 4.00. The place also has a high share (over 10%) in the low grades, which speaks of serious challenges to the quality of the school system.
The pandemic brings to the forefront the health and the ability of the health system to respond to emergencies. Patients who fight in hospital beds and access to medicine are among the most important for the quality of life in the place. The regional differences in the field of health care are especially visible when the population has access to medicine. While in some areas - Pleven, Sofia (capital), Plovdiv and Varna, one doctor cares for less than 200 people per half of the population in half of the region. On a similar scale and differences in the attitude of medical professionals. The number of hospital beds also varies from close to 10 beds per 1,000 people in the Pleven region to less than 3 beds per 1,000 people in the districts of Pernik, Dobrich and Shumen.
In recent years, there has been a decline in the number of registered crimes committed against the person and community in the country. The pandemic additionally reflects the reduction in the value of this indicator. In 2020, less than 10 crimes were registered against individuals and people per 1,000 people of the population. Kardzhali and Smolyan remain the most significant areas with about 5 crimes against the person and property per 1000 people. In 2020, the growth rate was the highest in the Gabrovo region - over 76% of the registered crime rates during the year. The northwestern regions of Montana, Vratsa, and Vidin, as well as the Varna and Burgas, are characterized by the largest number of registered offenses.
The pandemic is seriously affecting the economy, as well as the social indicators of the regions in the country. There is a clear change in the demographics, which is due to the very high level of death, as well as due to the outflow of population from the great population. Areas such as health care, education and culture are severely affected and function in the face of extraordinary circumstances. Due to this, the great regional differences are preserved and continue to be clearly seen in the data.
The current edition of "Regional Profiles: Development Indicators" shows the real picture on the ground after the pandemic and again draws attention to the major challenges to development and convergence of opportunities across the country. The change in the social sphere in the regions depends on the economic rise, as well as on the empowerment and financial independence of the population.
MONTANA DISTRICT
Montana is among the areas with the lowest incomes and standard of living, which predetermines the high share of poverty in the area. Economic activity in the district is the largest in the country, but its growth is accompanied by both the most significant growth in employment and unemployment in the country, although their coefficients remain significantly less favorable than average. Investment activity in the district is relatively weak, but the absorption of European funds is relatively high. Montana has the lowest share of highways and first-class roads. The average level of local taxes in the municipalities of the district is the second lowest in the country. The self-assessments of local administrations for the development of e-government continue to lag behind.
The continuing aging of the country's population is particularly evident in the Montana region. The results of the students are extremely low and in 2021 the shares of the second-year students and those who dropped out of primary and secondary education are decreasing. Access to doctors in the area is relatively high. The workload of criminal judges in the district is significantly lower than the national average, which also affects the speed of justice. In 2020, Montana is the area with the most registered crimes. The main reasons for good performance in the environment are the low volume of carbon dioxide emissions into the atmosphere, as well as that of municipal waste and its management. Cultural life in the Montana area is low.
Source: Institute for Market Economics
13.12.2021
THE MINIMAL SALARY BECOMES BGN 710 FROM JANUARY 1
The Ministry of Finance has published the draft law on the state budget of the Republic of Bulgaria for 2022 together with the updated medium-term budget forecast for the period 2022-2024, representing the reasons for it, and the accompanying documents.
The preparation of Budget 2022 and the updated medium-term budget forecast for the period 2022-2024 started with the development of a baseline scenario with current legislation reflecting the effects of the update of Budget 2021 (adopted laws amending the state budget, the state social security budget and the budget of the National Health Insurance Fund for 2021), which was subsequently upgraded with new assumptions for some policies in the field of income, social security and social policy.
The parameters of the draft Budget 2022 are in line with the fiscal rules and restrictions set out in the Public Finance Act, taking into account the effects of the temporary application of measures in emergency situations related to the COVID-19 pandemic.
The current medium-term budget forecast contains the required by the Public Finance Act (PFA) comparison of the macroeconomic forecast of the Ministry of Finance with that of the EC. A comparison of the forecast of the Ministry of Finance with the forecast of the European Commission regarding the indicators of the General Government sector is also included.
Following the temporary easing of fiscal policy in 2020 and 2021, which is estimated to be proactive countercyclical, the CFP deficit is projected to reach 5.1% of GDP in 2022 in the medium term (including COVID-19 measures) with subsequent annual steps for fiscal consolidation, reducing the CFP deficit to 2.8% of GDP in 2024.
In terms of limiting the fiscal rule for the CFP deficit (excluding the effect of COVID-19 measures) for the entire forecast period, the budget balance is within the deficit limit of 3 percent of GDP, as for 2020 and 2021. there is a positive balance of 0.2% of GDP and 1.3% of GDP, respectively, and for the forecast period - a negative balance within 2.8-2.9% of GDP.
In the medium term, CFP expenditures (excluding expenditures from EU accounts and other international programs and contracts equated to them, including related national co-financing) are within the 40% rule of the CFP, as marked a decline from 39.6% of GDP in 2022 to 35.7% of GDP in 2024.
In terms of revenues, the current forecast shows growth in nominal terms for the entire three-year period. As a relative share of GDP for 2022, they are 38.3%, for 2023 - 39.3% and for 2024 - 39.2%.
Regarding the expenditure trends for the period 2022-2024, nominal annual growth is observed, but as a share of GDP they decrease from 43.4% of GDP to 42.0% of GDP.
For the period 2022-2024, the envisaged tax policy will continue to adhere to the established principles and guidelines in recent years, and its main objectives are again aimed at maintaining economic growth, improving the business environment, combating tax abuse and increasing fiscal sustainability in the long run. The main priorities related to improving the collection of revenues, the prevention of opportunities for evasion and non-payment of taxes and social security contributions and the reduction of administrative burdens and costs for businesses and citizens remain.
The measures envisaged in the revenue policy are aimed at ensuring the necessary financial resources for the implementation of the government's expenditure policies. It is envisaged that low tax rates for corporate taxes and those for personal income taxes will be maintained as an important prerequisite for investment, economic growth and employment.
