Bulgaria’s Advantages – Low Insurance Burden
Bulgaria’s advantages related to employment and labor force do not end up with the low labor force cost. All transition governments worked for and applied legislation that is to be entirely in favor of business projects. In the course of time Bulgaria formed and practically introduced tax and insurance policy which stimulates business development and facilitates personnel hiring processes, thereby attaining unemployment decline.
Economic aspects of Bulgaria’s employment and labor force – „Low Insurance Burden”:
The insurance burden is one of the main setbacks before business regarding the employment process. It undoubtedly makes the labor force price much more expensive.
Fact: Extremely low tax and insurance employer’s burden – low employment cost
Besides the fact that the nominal and the real level of employment cost in Bulgaria is rather low, the state legislation provides an additional advantage in this regard – low insurance cost. The tax and insurance expenses in nominal values are doubtless the lowest within the European Union. What’s impressive, however, is that in percentage/share values the insurance burden in Bulgaria (both on the employer and the employee) is among the lowest in the EU. In other words – every foreign investor who decides to survey this aspect and find out what share of the employment expenses will go for government and insurance payments will be pleasantly surprised with the numbers. This ensures that at relatively low cost the employer could attain both non-burdening and providing more real funds at their employees’ disposal.
Likewise, taking into consideration this indubitable advantage of Bulgaria in terms of its labor force, it is not surprising that in the last few years the country turned into a real “magnet” for outsourcing of different business segments of foreign investors mostly bound to hiring a large number of personnel. It is highly possible that this tendency continue reaching remarkable levels of employment and enhancing the experience accumulation process for every single employee.