Simeon Djankov: The Finance Ministry will update the new budget in the middle of 2012

In the middle of 2012, the new budget will be most likely updated as a result of the adoption of the measure obliging civil servants to pay their own social security contributions, announced Finance Minister Simeon Djankov after the meeting of the Council of Ministers yesterday. It is realistic for the state employees as well as for the officers in the Ministries of Defence and Interior to start paying their social security installments in the middle of next year, stated Djankov. The proposal can become effective after the update of the budget as of May 1 or June 1.

Tomorrow, experts from the National Social Security Institute, the Ministry of Labour and Social Policy and the Finance Ministry are expected to be ready with their final calculations of the actual cost of this measure. According to Djankov, the state employees themselves will not be burdened since they will be compensated with the indexation of their wages. However, the measure will burden the budget because the increase in the average wage will raise the cost of maternity benefits, student scholarships and others. Provided that the budget framework is already before its second reading in Parliament, it cannot be changed now. According to the calculations of mediapool.bg, if civil servants assume the payment of their social security contributions, their real wages will be reduced by 9-12%, thus leaving approximately overall BGN 150 mln in the Treasury.
 

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