The Cabinet’s income strategy for the period from 2007 to 2009 envisions the increase of non-taxable income to at least 200 leva, as well as the introduction of flexible payment modes.

Labour and Social Policies Minister Emilia Maslarova presented the strategy to the members of the parliamentary economic and social committee. Representatives of labour unions and NGOs also took part in the discussion.

The strategy aims at providing steady income increase, taking into consideration inflation, labour productiveness and competitiveness, a Council of Ministers official press release said.

Income growth rate is estimated to be 10 per cent annually. The increase of pensions would be connected to the national economic development and income levels but no less than seven per cent.

The existence of a significant gray economic sector affected negatively income policies, the strategy said. Such negative developments took away funds from the state budget and respectively from social security funds.

According to the strategy the Cabinet should set the national poverty line and calculate minimal wages in relation to it.

Maslarova said that salary increase and taxation decrease should be considered together. The strategy also aims at modernising social security allocation.