07.12.2023
ROMANIA IS SECOND IN EUROPE IN NUMBER OF UNEMPLOYED PEOPLE
Romania ranks second in Europe in the number of inactive in the field of labor, according to Angarul newspaper. The publication cites data from an analysis of the labor market in Romania by the PricewaterhouseCoopers (PWC) for the US Chamber of Commerce.
Currently, there are approximately 7 million inactive people in the country in the country. This includes children, students, retirees and people aged 17 to 65 who neither study nor work. The same study shows that over the last 2 years the number of inactive people has increased by about 400,000. Thus, Romania has registered the third lowest employment in the EU by 67.1%, while in Europe an average of 73.1%.
"The Romanian does not run from work. The Romanian is not helped to find a job that will provide him with a decent life," said the sociologist Jelu Wordinica for Adevarul.
"Let's say I have the choice of going to work or waiting for the state. If I go to work, I get a minimum wage for the economy, just over 2000 lei (800 BGN). To go to work, I have expenses. Transport, cigarettes, food. This means that I must first invest somewhere 30 lei (12 BGN) per day. My investment amounts to 660 lei (264 BGN). This means that if they take me to work, my profit is only about 1500 lei (600 BGN). Which is demotivating," he adds.
The sociologist also affects another problem - labor shortages in Romania.
"The people who go to work abroad should also be taken into account. We complain that we have no labor in Romania, but on the other hand, we don't even know how to keep our Romanians in the country. With their skills, they can earn 3 times more there than here," the Duminica notes.
Academician Mircea Dumitru, Deputy Chairman of the Romanian Academy, affects another trend there-the graduates of high school to flee vocational schools.
"A vocational school provides work. We will always need plumbers, mechanics, electricians. In Romania, however, many seem to be ashamed to choose a similar profession. People need to understand that a good worker is as valuable as the architect or engineer," says Dumitru.
Daniel David, rector at the University of Bucharest, sees light in the tunnel.
"We began to change this perspective through the Dual Training Program. The idea is to involve various companies in the educational process from the beginning, to participate in the teaching and training activities for young people. And the companies will benefit from those university graduates," he says.
Romania is also the country with the most unemployed among university graduates, according to a Eurostat survey. 1/3 of those with secondary and higher education do not find a job after leaving school.
06.12.2023
IS SENIOR SERVICE INTERRUPTED WHEN CHANGING JOB?
We have to change job and the question arises: "What happens to my work and insurance experience during the time between the end of one job and the start of another?". The main questions that concern this period of time are the following:
During the time interval between the termination and the appointment of a new job, the service experience is interrupted.
The social security experience after December 31, 2004 is calculated in hours, days, months and years for the time during which individuals are insured for the social risks provided for by the law. When the person does not work during the time between the end of one job and the start of another job and is not registered at the labor office (or is registered, but does not have 12 months of social security experience in the last 18 months), the period will not count as social security experience.
In this case, it is important to distinguish health insurance rights from social security experience. In order for health insurance rights to be suspended, no more than 3 due monthly contributions must have been paid in a 36-month period. It is important to cover the minimum monthly health insurance contribution to the National Health Insurance Fund.
When starting a new job, it is recommended to check the insurance status of the person at the National Revenue Agency, which can also happen with a Personal Identification Code, by making a reference for a past period regarding insurance obligations owed to the state.
Reference:
Art. 9 of the Ordinance on the work record and work experience
Art. 40 of the Ordinance on pensions and insurance service
Art. 109 of the Law on Health Insurance
Art. 54a of the Social Insurance Code
03.12.2023
DECEMBER 3 - INTERNATIONAL DAY OF PEOPLE WITH DISABILITIES
On December 3, 31 years now, the world has been looking at the problems of people with disabilities, but more and more often their ability to have a worthy place in society.
In 1992, the General Assembly of the United Nations announced that date for International Day of People with Disabilities with the idea of politicians and institutions to focus on creating more effective policies to guarantee a full life of one of the most vulnerable groups in society. This year, the focus is on the progress of the objectives for sustainable development of the United Nations to overcome inequalities and ensure a more worthy life for people with disabilities.
Unfortunately, the UN reports that due to the crises that the world has been facing in recent years, the fulfillment of the goals by 2030 has been threatened. However, we believe that with the common efforts of the institutions and the civil sector in Bulgaria it is possible to overcome obstacles and to guarantee a worthy place in the society of every person in the country.
Just a few days ago, a meeting of the Council of the European Union for Employment and Social Policy was completed, at which the line ministers approved a position on the Directive to create a map of the European Union for people with disabilities and a parking card for persons with disabilities.
We sincerely believe that the specific capabilities of people with disabilities are the engine, which can drive the change to overcoming stereotypes and to actively involve them in all spheres of public life of the country.
01.12.2023
SLIGHT INCREASE IN UNEMPLOYMENT ON AN ANNUAL BASIS
The unemployment rate was 4.0%, or 0.4 percentage points higher than in the third quarter of 2022.
The employment rate for the population aged 15 - 64 years decreased by 0.6 percentage points compared to the same quarter of 2022 and reached 71.5%.
The coefficient of economic activity for the population aged 15 - 64 years is 74.6%, and compared to the third quarter of 2022, it decreases by 0.2 percentage points.
Discouraged persons aged 15 - 64 are 36.0 thousand, or 3.6% of the economically inactive persons in the same age group.
Unemployment
Unemployed persons in the third quarter of 2023 are 125.0 thousand, of which 69.9 thousand (55.9%) are men and 55.1 thousand (44.1%) - women. Compared to the third quarter of 2022, the number of unemployed persons increased by 14.0 thousand, or by 12.6%. For the same period, the unemployment rate increased by 0.4 percentage points and reached 4.0%, respectively 4.3% for men and 3.8% for women.
Of all unemployed persons, 17.1% have a higher education, 49.6% - a secondary education, and 33.3% - a primary or lower education. Unemployment rates by education level are 2.1% for higher education, 3.6% for secondary education and 12.0% for primary and lower education, respectively.
Long-term unemployed (unemployed for one year or more) are 66.3 thousand persons, or 53.1% of all unemployed. The rate of long-term unemployment is 2.1%, respectively 2.2% for men and 2.1% for women.
Of the total number of unemployed persons, 17.7 thousand, or 14.1%, are looking for their first job.
The unemployment rate for the age group 15 - 29 years of age in the third quarter of 2023 was 8.3% (9.0% for men and 7.4% for women). Compared to the same quarter of 2022, this ratio is higher by 0.3 percentage points, which is entirely due to an increase in women.
30.11.2023
A DRASTIC DIFFERENCE IN SALARIES IN OUR COUNTRY
In 18 regions in our country, the average gross salary is below BGN 1,600, and only in Sofia it exceeds BGN 2,000 at the end of the third quarter of this year, according to the latest data of the National Statistical Institute.
In the capital, the average salary is now BGN 2,722. After her, the best paid are those working in the Sofia region - with an average gross remuneration of BGN 1,864, and a large part of these people also work in the capital. Varna follows - 1,861 BGN and Stara Zagora - 1,851 BGN. In Vratsa and Plovdiv, the average gross salary is BGN 1,764 and BGN 1,736, respectively.
In six districts, however, workers receive an average of less than BGN 1,400. The lowest wages are in Blagoevgrad - BGN 1,337 gross. Kyustendil - 1368 BGN and Vidin - 1369 BGN are also in the queue.
In the third quarter of 2023, the average gross monthly salary increased by 2.2% compared to the second quarter of 2023 and reached BGN 2,000. The economic activities in which the largest increase was registered were "Government" - by 13.4%, "Education" - by 12.2%, and "Agriculture, forestry and fisheries" - by 7.5%.
In addition to areas, there is also a serious difference in salaries for different professions.
For example, those employed in the "Creation and dissemination of information and creative products, telecommunications" sector, which also includes the IT sector, earn an average of BGN 4,670. those working in "Production and distribution of electric and thermal energy and gaseous fuels" receive an average gross salary of BGN 3,055.
At the same time, the average salary in "Hotel and restaurant industry" is only 1,265 BGN, and in "Agriculture, forestry and fisheries" - 1,511 BGN. In the "Culture, sport and entertainment" sector, the average remuneration is BGN 1,699, in "Administrative and auxiliary activities" - BGN 1,634.
29.11.2023
IN WHICH SECTORS ARE NEW JOBS BEING CREATED?
EU commitments to achieve a 55% reduction in greenhouse gas emissions compared to 1990 levels by 2030 will be positive for employment in the EU, leading to the creation of 204,000 jobs, Eurofound predicts.
This is in addition to expected employment growth of 6.7 million net new jobs between 2019 and 2030. However, the agency warns that some industries and regions will be particularly negatively affected.
One of the EU's main strategic goals is to ensure that Europe becomes the first climate-neutral continent with net zero greenhouse gas emissions by 2050. To achieve this goal, EU politicians adopted the Fit for 55 policy package in 2021, which contains interim decarbonisation targets aimed at reducing emissions by 55% by 2030 based on 1990 levels.
According to a Eurofound report on employment impacts in the EU to 2030, negative employment effects are more likely in some central and eastern EU countries, notably Poland and Romania, and regions with a relatively high proportion of workers still working in extractive industries industries.
Positive effects on employment are predicted in southern European countries, especially Spain and Italy, and regions with natural endowments (wind and solar), developed energy efficiency infrastructure and capacity to produce renewable energy equipment.
With jobs in both improving energy efficiency and developing renewable energy capacity, the sector likely to benefit the most in terms of employment is construction. There will also be increased employment in market services as relative prices favor a shift in the structure of the economy towards "cleaner" sectors, reinforcing the shift of employment to the service sector.
While overall employment is projected to improve toward 2030, the small increase in employment forecast for the Fit for 55 package generally occurs in low- and middle-wage jobs that do not require a college degree.
Speaking about the report, John Hurley, Eurofound's senior research manager, noted the need for a broad policy focus to reap the benefits of decarbonisation while protecting those who could lose out. "Policies aimed at reducing greenhouse gas emissions will have different effects on employment across sectors and occupations, increasing demand for some jobs and reducing demand for others." They must work hand-in-hand with education, training and employment policies to prepare workers with the necessary skills and competencies to contribute to the collective decarbonisation effort," he adds.
29.11.2023
GUARANTEEING PAYMENT OF SALARY
The payment of labor remuneration is the main obligation of every employer.
The frequency of payment of labor remuneration is agreed between the worker and the employer in the employment contract and can be twice a month, once a month, once every two or three months, etc.
Labor remuneration is paid personally to the worker or employee. Exceptionally, the remuneration can be paid to other persons, for which the employee submits a written request to the employer. The persons who can receive the labor remuneration are only those close to the employee.
Guaranteeing the payment of labor remuneration:
In the case of conscientious performance of labor duties, the worker or employee is guaranteed the payment of labor remuneration in the amount of 60 percent of his gross labor remuneration, but not less than the minimum wage for the country.
The difference up to the full amount of the remuneration remains due and is payable additionally together with the statutory interest.
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
15.11.2023
WHAT GOODS CAN WE BUY WITH FOOD VOUCHERS?
Through food vouchers, employers provide employees and management contracts with food, separately from their remuneration.
The provided food vouchers are a means of exchange through which users receive food and food items against the face value of the vouchers at restaurants, fast food outlets, as well as food outlets including grocery stores, supermarkets, hypermarkets, etc., operating in accordance with the requirements of the Food Law.
Food vouchers cannot be used as a means of payment for the purchase of wine, spirits, beer, tobacco products (cigarettes, cigars, cigarillos, pipe tobacco, chewing tobacco, snuff, etc.), as well as being exchanged for money.
As it becomes clear, the law places restrictions not only in terms of in what establishments the food vouchers can be used, but also for what goods and services.
It has certainly happened to most people to enter a store and when they try to pay with a voucher, the cashier politely or not so kindly explains that the relevant goods cannot be purchased in this way and must be paid for separately in cash. Why are these examples so common and what exactly are the limits on the goods we can buy with food vouchers?
Surprisingly or not, the law has regulated what is included in the concepts of "food" and "food products", which are different in nature. "Food" means any substance or product intended or capable of being used for human consumption, whether processed, partially processed or unprocessed within the meaning of the Food Act. "Food products" are all food raw materials, semi-finished products, finished products and meals, beverages, spices, flavoring substances, additives, auxiliary materials, etc., consumed by man to meet his energy and nutritional needs for life and growth.
The law in Bulgaria also regulates the conditions under which the respective food vouchers are provided and used. They are provided under conditions agreed between the employer and the representatives of the workers and employees and/or the representatives of the nationally representative trade union organizations in the enterprise.
Users who have received meal vouchers printed by one operator may only use these vouchers at a vendor outlet with which the relevant operator has a service contract.
When the amount of food or groceries purchased is lower than the nominal value of the voucher, the user is not entitled to receive the balance up to the nominal value of the voucher provided.
Any user who has received meal vouchers is required to return unused meal vouchers to the employer upon termination of employment or management contract.
Reference:
Art. 2, Art. 3, Art. 14 of Ordinance No. 7 of July 9, 2003 on the terms and conditions for issuing and revoking a permit to operate as a food voucher operator and to operate as an operator
Art. 2 of the Food Act.
14.11.2023
ROMANIAN PENSIONS WILL INCREASE BY AN AVERAGE OF 40% FROM NEXT YEAR
Romanian state pensions will rise by an average of 40% from September 2024 after recalculations based on an upcoming bill, increasing pension costs to 13.8 billion lei (about $2.97 billion) a month, Labor Minister Bucura said Fresh, reports Reuters.
The pension reform is a condition for Romania to continue using EU recovery funds, with the country committed to eliminating inequalities and removing pre-election political decisions from the process of pension increases.
Under the upcoming pensions bill, which the government will seek parliamentary approval this month, five million pensions will be indexed by 13.8% as early as January as a first step.
The recalculation, planned for September 2024, will eliminate inequality by ensuring that people who have worked the same job for the same number of years will receive the same pension.
The bill, which was supposed to be approved in the first half of this year, has been repeatedly delayed and will take effect from 2024, when Romania holds local, parliamentary, presidential and European elections.
Overall, government spending on pensions will rise to an estimated 146 billion lei ($31.45 billion) in 2024 from an estimated 115 billion lei this year.
Just under 2 million Romanians, or 10% of the population born during the communist-era abortion ban, will reach retirement age after 2030, representing a destabilizing increase in costs to the state pension system.
