The latest official data on salaries in both the private and public sectors shows that it is still more lucrative to work for the state than for a private company. This is the main conclusion that can be drawn by the data released by the National Statistical Institute (NSI) on August 11 and the new updated salaries in the public sector provided in Ordinance 198. It was published by the State Gazette on August 15 after being approved by the Cabinet on August 8 and features a long list of public posts, including mayors, deputy ministers, heads of state agencies and expert personnel.

The NSI data on salaries for the second quarter of 2008 said that the average salary in the public sector was 603 leva a month, while those employed in the private sector got 477 leva.

This analysis, according to think-tank Industry Watch, published on its website, reflects the gap between the real incomes of people working in the private sector and the incomes they officially declare.

In both sectors, however, the most well-paid position has been in the sector of financial intermediaries, with the public still winning against the private, 1330 leva a month against 1278 leva.

It is quite different in the education sector, though, with the average salary in the public sector at 505 leva, while the private sector is at 703 leva a month, according to the NSI.

According to Education Minister Daniel Vulchev, as of July 1 2008, the average salary of a high school teacher is 650 leva a month. This was possible after the ministry allocated 15.1 million leva for salaries this year. This sum would increase to 44 million leva next year.

The situation is unlikely to change in the real future if one looks at the updated salaries of public officials approved by the Cabinet. They say that as of August 1, the average salary in the Finance Ministry grew to 1007 leva, the highest of all ministries. Close behind was the Ministry of Labour and Social Policy, where the average salary was increased to 957 leva a month.

Of all the state agencies, the highest average salary goes to those working for the Asset Forfeiture Commission – 1066.04 leva.

Top government officials, such as the head of the office  of the prime minister, can earn between 1147 leva and 1860 leva a month. The highest salary for a National Revenue Agency official was increased from 1422 leva a month to 1546 leva. Sofia mayor Boiko Borissov was given a maximum salary of 1661 leva a month, the same as heads of state agencies, deputy ministers and regional governors. The mayors of towns with a population of more than 50 000, such as Varna, Plovdiv and Bourgas, for example, will earn 1572 leva a month, at the most.

It is interesting to see that the document approved by the Cabinet says that the new salaries can be enforced only after state administration employees’ wages has been decreased, which is in accordance with article 23 of the 2008 Budget Act, presenting a 12 per cent cut. The problem is that Ordinance 198 also says that the appointment of new employees in state administration for the purposes of strengthening its capacity are not part of the provisions of article 12 of the 2008 Budget Act. This simply means that if a government body wants to employ a number of new employees, it can do so as long as it helps “strengthen the administrative capacity”, notwithstanding article 23.

Thus, logic is visible in the numbers quoted by Bulgarian-language Dnevnik on August 14. According to them, the total number of state employees as of August 1 2008 was 129 599.

The ministries’ main reason for strengthening their administration capacity has always been for better absorption of European Union funding not to achieve goals or get results.