We are brought back to the swamp of the crisis

Increasing the pension contributions by 3% is an inappropriate measure, which will not lead to the expected result, as it was optimistically announced by the management of the National Social Security Institute. This is an extremely uncalculated move, especially considering that we have just recently realized economic growth since the beginning of the crisis. Launching such measures will discourage also these companies, which despite the crisis eagerly strive to achieve growth, to conquer new markets and be more competitive. Undoubtedly, when all these burdens gradually accumulate on the shoulders of the official business, we will witness the respective negative consequences. If we take a look back, we’ll see that until now the business has sustained losses by the fact that several hundred million were withheld and not paid on time to absolutely accurate companies, who did their job. At the same time, those that received any payment were forced to accept it with 7% deductions, which is totally unacceptable for a democratic country. Furthermore, most probably the first three days of sick leave will continue to be paid by employers next year, and in addition the fact that the burden of social security contributions continues to be larger for employers compared to employees with a ratio 60:40, analysts can calculate what the results will be for the business. The burden on employers is not limited to this. We have to take into account something else – the rash statement - which may be realized, as it was announced - 3% increase of pension contribution. We sincerely hope that this will not be enforced with a decision of the government. It is also disquieting that the minimum insurance income rates will be lightly increased with 5,6% in all sectors, which may happen next year. This is also an absolutely inadequate action. If it happens, it will be a pro-crisis step and will sink the companies again in the swamp of economic difficulties. We are speaking of more than 1 billion BGN, which are drawn out from the hands of employers. Not to mention that it is very likely that this will lead to insecurity and reduced consumption, i.e. just a month after we have realized some sort of growth, we reverse the spiral and begin to sink again. What is sad is that the government makes these statements when we announce the results from our survey, which show that there are still a lot of firms which work outside the grey economy. Thus all the employees who have chosen to work in the official economy, to pay their contributions, so that they can later receive pensions, will be discouraged. Last year’s government actions to decrease the contributions by 2% are made pointless. The situation is getting even worse which does not promise good perspectives for the economy and the country. 
 
Text in BG