The total cost of living of a four-member household has increased with new 36 BGN since the beginning of the year as a result of a consistent increase recorded in the last two quarters. The money is needed to cover food, housing, health, transport and rest costs. In 2018, household expenses have increased by about 3 per cent and the highest is the increase in non-food commodities.
The necessary funds for normal life per person in a household are BGN 590,32.
For Sofia, the sum of necessary funds for normal life rises to BGN 3078 for a four-member household and BGN 769 respectively per person. Living in the capital exceeds the average levels of living expenses in the country by 30 percent. At the same time, in areas such as Vidin, Kyustendil and Blagoevgrad, the average net wages are only about 50 per cent of the amount required for normal living.
To this date, State Social Security Fund paid salaries amounting to BGN 2.9 million to employees of companies in bankruptcy. However, thousands of people still await claims from nearly 40 companies.
This shows the latest data of the Institute for Syndical and Social Studeis of the Confederation of Independent Trade Unions of Bulgaria (CITUB).
In order to achieve the total sum to cover the necessary living expenses, the net income of two adults in a household should be not less than BGN 1180 per person. However, no more than 20% of Bulgarian workers receive such salaries. The average net wage in March 2018 was lower by BGN 321 (27 percent) of the average values required to cover living.
CITUB figures show that despite positive changes in the economy of the country, there was no tangible increase in low income groups. This leads to a deepening of differentiation and income inequalities between the poorest and the richest. The richest 20 percent of the population in Bulgaria get 8.2 times the poorest 20 percent.
At an eligible cost of rent of 30 per cent, the average household in Bulgaria must have a income of at least BGN 1572 per month for residential purposes. Bearing in mind that the minimum wage in Bulgaria is BGN 510, we can conclude that it is not enough for bulgarians to comfortably cover the expenses of housing under rent in none of the big cities in the country.
