Bulgarian Socialist Party to propose 9.6% minimum wage hike as of 2014

By bne IntelliNews September 25, 2013

Members of the Bulgarian Socialist Party (BSP) - the senior ruling partner, told a press conference on Sep 24 that the minimum wage in the country may be increased to BGN 340 (EUR 174) from the current BGN 310 as of January 2014, according to a report by Darik News.

There is a good chance that this would happen considering that earlier in September finance minister Petar Chobanov said he considers that the minimum wage must be raised next year. He later confirmed that the issue will be discussed during the forthcoming budget drafting process for fiscal year 2014.

The leftist party also proposes placing a one-year freeze on the gradual increase in the retirement age and the introduction of an indexation of pensions to the life expectancy in the country. Another suggestion is to link the child care benefits for kids aged 1 - 2 to the growth in the minimum wage.

As far as the tax system is concerned, BSP has given up its intention to repeal the 10% tax on interest earned on deposits that was introduced by the previous government in the beginning of 2013.

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