Salaries of nearly 1.2 million people would decrease after the introduction of flat rate tax in Bulgaria, according to the Confederation of Independent Trade Unions in Bulgaria (CITUB).

CITUB’s vice president Plamen Dimitrov proposed to add a compensation sum to salaries, to prevent losses in net salaries, Dnevnik daily reported.

Bulgarian Industrial Association vice president Dikran Tebeyan said that the compensation could be achieved with one-time salaries raises.

By the end of the week, unions’ experts and employers’ organisations would discuss the measures for compensation of employees in the private sector, whose income would decrease due to the flat rate tax, Dnevnik said.

Labour and Social Policy Minister Emilia Maslarova agreed that there was a real possibility for employees in some industries, such as textile, agriculture and food in the private sector, to see their salaries decrease.

Some 55 million leva were allocated for compensation for people with lower salaries, she said.