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The Association of Industrial Capital in Bulgaria (AIKB) together with other employers' organizations will challenge the decision of the Bulgarian Parliament on the amount of the minimum wage adopted yesterday before the European Commission and the International Labor Organization (ILO).

This was announced today in Varna by the Chairman of the AIKB Board of Directors, Vasil Velev.

He was among the participants in a discussion meeting on the problems and opportunities facing Bulgarian business in 2023, hosted by the University of Economics in the seaside city.

"The decision that the minimum wage (MW) is 50 percent of the national average is a mistake, it contradicts the ILO Convention and the European Directive on Adequate Minimum Remuneration," Velev pointed out.

According to him, with this vote, the parliament actually usurped the functions of the Tripartite Council, as well as the Council of Ministers.

During the non-stop election campaign in recent years and the lack of leadership, such wrong decisions are reached, and this is harmful for the country and for the people, Velev added.

According to him, the decision will lead to the fact that in some economic sectors everyone will receive equal remuneration, regardless of their contribution.

Final: The MPs decided on the amount of the minimum wage

"In Europe, the ratio between the minimum and the average salary is 43 percent, in the USA and China - significantly lower," added the chairman of AIKB.

According to him, the problem is that when fixing the ratio in our country, the parliament did not take into account either the fact that a percentage is charged for time served, nor the large differentiation in wages by economic sectors and territories.

In individual sectors, the difference in average salaries reaches four times, Velev also said.

According to him, the correct solution would be for the minimum wage to be different in different economic spheres, as negotiated by the social partners. 

"It is unprecedented for the National Assembly to determine the amount of the minimum wage," added Milena Angelova, general secretary of AIKB, as the decision hides the danger of intensifying the inflationary spiral.

"There is a risk that the pressure on the social system will increase, because there are many benefits tied to the minimum wage," Angelova said. 

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