According to CITUB estimates, the growth of revenue from social insurance contributions next year is expected at some 391 million leva (199.915 mln euros). Kokalov attributes this to the rise of the contributory income thresholds in some sectors like construction, where it reaches 30 per cent. This implies that in a number of industries, the contributory income thresholds are
already the minimum wages, he explained, specifying that education and culture employees and members of the armed forces will benefit from the newly enforced minimum contributory income.
CITUB has reached agreements with employers in the industries where they have chapters on contributory income thresholds in 48 out of a total of 73 economic activities. For the first time, such thresholds have been agreed for work at dental laboratories (21.2 per cent for doctors and 19 per cent for nurses and dental mechanics). No agreements have been reached in the tailoring industry, water supply and sewerage and some branches of food processing.
Kokalov described the agreements as a good basis for payment of social insurance contributions on the actual income next year which, according to CITUB, will bring a larger number of industries to light.
The CITUB leadership recalled a Council of Ministers decision on a 3 percentage points cut in social insurance contributions effective October 1, 2007 and specified that the trade unions and some employers have agreed that 2 per cent of this decrease go for a pay rise. According to Kokalov, as a result of this, along with the 12.9 per cent recommended increase of wages, the actual rise will add up to over 14 per cent. CITUB recalled that the average minimum contributory income threshold agreed for 2008 will be 25 per cent.