BIA: Some 16% of employers plan to increase salaries in 2011

Some 16% of employers in Bulgaria envisage wage increases in 2011, according to a survey of the Bulgarian Industrial Association (BIA) conducted among 430 companies in Bulgaria, which was carried out during the second half of April and posted on the website of the organization.

Half of the surveyed representatives of the business sector intend to maintain the level of remuneration, while 34% of them are still considering their decision on this issue. Those planning increases are prepared to raise salaries it within the range of 5% to 13%.

A total of 57% of employers are adamant that the indexation of wages should be negotiated only at the enterprise level, while according to 32% this should be realised at the branch level. Merely, 4% of respondents accept positively the idea of ​​negotiating a recommended national index of growth in wages, while 7% of the polled could not decide on this issue.

According to the surveyed employers, the leading factors for determining wages must involve labor productivity (77%) and inflation (66%). Besides, amendments in tax and social security legislation (45%) should also be taken into consideration well as the competitiveness of manufacturers. (43%).

The increase of labour productivity is a major source for indexation of wages and social security payments, according to 90% of respondents. 62% of the polled recommend an administrative reform, including cuts administrative staff and a faster introduction of the e-government, while 16% of the surveyed reckon that for income indexation, an increase in taxes and social security contributions is necessary.

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