Half of Bulgarian companies have adjusted their employees’ wages for inflation, according to a flash survey among members of the Bulgarian Chamber of Commerce and Industry (BCCI). It was prompted by the serious rise in inflation and its impact on the labour market.
The survey was conducted on July 19-29 on a voluntary basis, the BCCI said.
It found that 53% of respondents increased their employees’ pay to help them cope with the price hike of goods and services.
The pay rise was between 5% and 10% in half of those companies; 24% of companies opted for an increase equal to or above the 17% annual inflation rate in June; and 9% of respondents increased wages by 3.3% – the inflation rate for 2021.
Inflation is expected to hit around 12% this year, the BCCI said.
The business community is seriously concerned about inflation in Bulgaria and Europe: 66% of respondents do not expect inflation to fall to pre-crisis levels soon, over 20% expect a tangible drop in inflation when the political situation in Bulgaria calms down or the war in Ukraine ends, and just 2% say inflation will drop to tolerable levels by the year’s end.
Nearly 80% of companies reported a serious increase in the prices of raw materials and energy products. One-third put off investments in a bid to offset the inflation rate. Sales increased in over 25% of companies but their profits shrank. About one in five respondents reported a drop in employee numbers.
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