Bank accounts have become a part of the life for every working Bulgarian.
According to new legislation adopted at the end of 2006, Bulgarian employees may receive sick leave pay only through a bank account. No bank account means receiving no sick leave pay.
But the law states that when a citizen does not have a bank account, their money will not be lost but will be kept in the bank accounts of the National Social Security Institute (NSSI).
The new law also changes the role of the NSSI regarding sick leave and maternity leave.
The changes were made at the request of the NSSI. As of January 1, mothers of infants will receive their maternity leave money directly in their bank accounts, as opposed to the previous practice of money being sent to employers who then passed on the money to employees along with their salaries.
The new method is meant to speed up payments, which previously often were delayed by employers for bureaucratic and administrative reasons. Under the new regulations, the patient’s sick leave will be sent to the accountant’s office of the employer together with the number of the personal bank account of the sick person.
The change will benefit employers as well, with the NSSI taking over the responsibility of monitoring the money transfers, saving employers time and paperwork. All they have to do is submit the medical documents to the relevant territorial division of the NSSI in the month following the date of the wage payment.
ince the beginning of 2007, the NSSI has been responsible for transferring death and disability allowances as well. According to Yordan Hristoskov, head of the NSSI, the bank account requirement would work for Bulgarians because 90 per cent of them already have bank accounts. The change was well received by local banks, who charge fees for opening and servicing bank accounts.
The average monthly maternity benefit in Bulgaria is 280 leva, with the entitlement period now increased from 135 days to 315 days before and after childbirth. In total, 117 million leva have been allocated in the 2007 budget, compared with 70 million leva in 2006.
Child benefits in 2007 total 75 million leva.
While parents can see some positive news in the increased funds for maternity leave in 2007, pensioners have nothing to celebrate about. Speaking to reporters on January 8, Labour and Social Policy Minister Emilia Maslarova said that there was no money available to increase pensions.
In 2007, some pensions will remain below the poverty threshold, which is 152 leva a month, as determined by the Cabinet in 2006. A national consultative council comprising representatives of all retired persons’ organisations will meet with officials to discuss ways to improve the national pension system. The council will hold its first working meeting on January 20, Maslarova said.
Finance Minister Plamen Oresharski made it clear on January 8 that pensioners should not expect an increase in their pensions.
Speaking on private Nova TV, Oresharski said that there was a reality with which he had to conform. “I also want to receive 10 000 euro as salary as my colleagues in the EU do, but I do not,” he said.
Every finance minister had to look at the numbers and work according to them, not according to populist sentiments, Oresharski said.
