/ world today news/ Experts from the Ministry of Finance are convinced that the increase in the minimum wage will not have a negative impact on business, as employers claim.
Analysis by the Ministry of Finance shows that raising the minimum wage will not affect employment. Employers are strongly opposed, arguing that this will lead to the release of low-skilled staff. However, the research shows that the proportion of people on the minimum wage is steadily decreasing – from 16% in 2005 to 6% in 2012. This percentage is too low to affect unemployment. The more significant group of workers in our country – 40%, received between BGN 350 and BGN 500. Thus, the increase in the minimum wage from BGN 310 to BGN 340, which the unions insist on, would not affect this group of workers.
The growth of the minimum insurance thresholds in some sectors would have a more significant impact on employment, according to the Ministry of Finance. These are construction, retail trade, light industry, transport and tourism. There is the highest percentage of employed people with salaries close to the thresholds on which social security contributions are charged. However, the main reason for the layoffs in these sectors is the shrinking of the markets, not the insurance thresholds, according to the Ministry of Finance. However, the stipulation is made that more precise conclusions can be drawn after research at the regional and company level.
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