Wage developments in Bulgaria Dr. Lyuben TOMEV - Director of ISTUR - - PowerPoint PPT Presentation

10-th Annual TURI conference

Wage developments in Bulgaria

• Dr. Lyuben TOMEV - Director of ISTUR

16-18 May 2018, Berlin

GDP and Average Wage Real Increase in Bulgaria for the period 1991-2017 (1990=100.0) Source: NSI

113.2 155 20 40 60 80 100 120 140 160 180

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Real Wage Real GDP

Average and Minimum wage real increase in Bulgaria for the period 1991-2017 (1990=100.0) Source: NSI

61.1 35.4 51.5 88.9 113.2 73.8 21.8 55.3 85.4 114.1 20 40 60 80 100 120

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Real AW Real MW

Minimum/Average Wage Ratio in Bulgaria for the period 1990-2017 Source: NSI

43.1 52.1 35.9 26.5 46.3 36.4 43.4 10 20 30 40 50 60

%

GDP per Capita, Labour productivity per hour worked, Compensation per employee PPS-Data for Bulgaria, EU28=100 Source: EUROSTAT and own calculations

35 37 38 40 43 44 44 46 46 46 47 47 49 51 35 36 37 38 39 40 41 43 44 43 44 45 45 46 22 23 23 24 26 28 30 32 34 37 40 42 43 46

10 20 30 40 50 60 GDP/Cap LP/ hour Com/Emp

Compensation of employees (% of GDP) Source: EUROSTAT

32.7 32.2 33.6 35.4 36.4 35.4 36.9 39.6 41 41.3 41.8 43.1 46.7 46.5 47 48.5 47.9 47.5 47.8 47.7 47.5 47.2 47.4 47.4 10 20 30 40 50 60 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 BG EU-28

6

Minimum wage, average pension pro 1 pensioner,

• fficial poverty line (in EUR monthly)

Source: NSSI and NSI

112 123 123 128 145 158 174 189 215 235 107 125 135 136 139 150 158 165 170 176 85 99 108 108 121 123 128 146 153 160

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Minimum wage Average pension Poverty line

Low paid workers – relative share (2014)

25.5 24.4 22.8 21.3 18.7 18.2 15.1 14.8 12 8.8 5.3 3.8 2.6 5 10 15 20 25 30 Lat Rom Est UK CzR Bul Mal Aus Por Fra Fin Bel Swe

Employees on full working time with gross wage bellow 67%

• f median wage (Source: Eurostat – Structure of earnings)

Lorenz curve of gross annual earnings in 2014 (Source: NSI – Structure of earnings)

10 20 30 40 50 60 70 80 90 100 10 20 30 40 50 60 70 80 90 100

Total wages - % Employees - %

Highest and lowest paid economic activities in 2017 (average monthly wage – EUR), A96 Classification

(Source: NSI)

Top 10 AMW Computer programming 1610 Air transport 1495 Oil manufacture 1390 Insurance 1086 Information services 1004 Head offices and consultancy 977 Advertising 962 Mining of metal ores 952 Financial services 936 Electricity, gas, steam 905 10 on the bottom AMW Repair of personal & household goods 339 Medical-social care 339 Social assistance 336 Manufacture of clothing 328 Veterinary medicine 327 Manufacture of leather, footwear 311 Services to buildings & landscape 311 Security and investigation 310 Other personal services 300 Restaurants and food services 296

Compensation per hour worked

• 2017 г. C/1h in Bulgaria 5.1 EUR (ЕU – 23.1)
• Nominal gap 4.5 times, and in PPS – 2.2 times
• Comparative level of C/1h in PPS 46.3% of EU
• 2007 г. C/1h in Bulgaria 2.3 EUR (ЕU - 19.5)
• Nominal gap 8.5 times, and in PPS – 3.9 times
• Comparative level of C/1h in PPS 25.6% of EU

Average monthly salary 2017 (Gross, Net and in PPS)

State Gross (EUR) Net (EUR) Net (PPS) Bulgaria

542 423 887

Denmark

5191 3270 2436

Luxembourg

4412 3159 2612

Netherlands

2855 2155 1944

Estonia

1221 957 1305

Slovakia

980 748 1121

Hungary

955 635 1076

Minimum wages – levels and growth rates (2018/2017)

• High levels of MW – Luxembourg, Ireland,

Netherlands, Belgium, France, Germany, UK (1999- 1463 EUR), average rate - 1.8%

• Middle levels of MW –Spain, Slovenia, Malta,

Greece, Portugal (859-677 EUR), average rate – 2.9%

• Low levels of MW –

(the 10 new member states: Poland 503, Bulgaria 261 EUR), average rate – 8.4%