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Inflation this year has caused some companies to raise the wages of overtime employees. At the same time, the costs of companies have increased many times, on the one hand due to the high prices of energy products, and on the other precisely due to the increase in labor costs. All this will force some companies to limit spending for the holidays, related to both Christmas parties and gifts, as well as granting Christmas bonuses, writes darik.bg
Most companies plan Christmas gifts and parties, but not Christmas bonus money. Companies are in no mood to pay employees a thirteenth salary, according to a survey conducted by an HR firm.
Very few employers provide a cash bonus for their employees, and it will be up to 1/3 of salary.
The tendency is to reward the results achieved and good performance, expected for the next financial year, not for holidays. A mass practice for Native employers this year will be gift or holiday vouchers for goods and services of equal value to all employees.
This year, for example, the amount of food stamps has been increased to 200 lev. So many companies actually resort to such coupons as a gift. Businesses benefit because no insurance is owed to them.
The monetary equivalent of Christmas bonuses varies by economic sector, with IT companies allocating the largest budgets.
According to another study, by Mercer, nearly 88% of companies have a bonus system to incentivize their employees, with 60% of the bonus depending on the worker’s individual performance. Bonuses grow in relation to salaries, i.e. the higher the position of the employee, the higher the bonus. According to data, half of companies in our country give a bonus for Christmas, the average amount is 200 lev.
However, according to experts, inflation over the past year is likely to prompt employers to review and update their cash and non-cash bonus policies to plan for the next year to keep employees in the companies.
What bonuses did they give last year
By comparison, last year eight out of ten companies announced they would give their employees an extra material incentive for Christmas. As their number has increased compared to 2020, when bonuses were severely limited due to the Covid pandemic crisis. However, just over 10 percent of companies indicated that they do not plan to distribute Christmas bonuses to staff due to the negative consequences caused by the pandemic, according to a survey by the Bulgarian Chamber of Commerce and Industry (BCCI). Traditionally, more than half give all employees the same amount and 35% set different pay for each worker.
And last year, one in three companies gave up BGN 200. Between BGN 200 and BGN 500, 28% of employers set and 18% of executives provide additional remuneration of BGN 500 to BGN 1,000. Only 12% of workers can expect a Christmas bonus of more than BGN 1,000, with the percentage decreasing by about 2% compared to 2020. Compared to 2020, the share of people who received a bonus of up to BGN 200 decreased, while it increased that of the staff with a Christmas “card” between 200-500 BGN and 500-1000 BGN.
How are you doing abroad?
Unlike Bulgarians, workers in Greece and Germany expect serious Christmas bonuses. Most people working in Germany under a collective agreement will receive an average of 2,747 euros, calculated the Federal Statistical Office. This is a 2.6% increase over 2021.
The increase is well below the rise in inflation in Germany, which hit a 70-year high of 10.4% in October.
The Christmas bonuses will be paid to 88.5 percent of workers with collective agreements in eastern Germany and 85.7 percent in the western part of the country. The average value in West Germany – 2,768 euros – is higher than in East Germany – 2,611 euros.
There are serious differences in the amounts they will receive in different industries. Thus, those working in the oil extraction, natural gas extraction and oil refining sector will receive between 5,450 and 5,504 euros.
Employees in the “Recruitment and provision of manpower” sector will be paid the smallest Christmas supplement of 327 euros. The figure for tobacco processing workers is also low: 564 euros.
The German Institute for Economic and Social Research (WSI) calculates that 54% of all workers will receive Christmas bonuses.
The Greek government has obliged all private companies to pay Christmas bonuses to employees by December 21st. The Labor Department has warned that bonuses should be in cash, not goods.
The right to the Christmas bonus also belongs to those who work temporarily or in seasonal jobs, which also concerns many Bulgarians, as they will receive a part of the amount depending on the months and working days, the experts explain. Bulgarians who have worked in Greece during the summer tourist season are also entitled to an additional amount before the Christmas holidays.
Public sector employees also receive an end-of-year bonus.
