In 2006, the average monthly wage in the country was BGN 355 (€ 181.5 as at 30 April 2007) with a nominal increase of 9.6% on an annual basis. This positive development is the result of the stable macroeconomic environment and the reduction of the social insurance contributions of employers. Last year, the average wage of men stood at BGN 384 (€ 196.3), while that of women was BGN 325 (€ 166.2). When comparing the increase in wages between women and men, women’s wages increased by 10.9% in 2006, while those of men only rose by 7.8%. The higher nominal wage increase of women, a recurring feature since 1998, has narrowed the gender pay gap to values comparable with those of the EU25 average. Nevertheless, it is important to bear in mind the very low wage level in Bulgaria compared with other EU Member States and the marginal increase of wages in real terms.
In 2007, the Institute for Social and Trade Union Research (ISTUR) presented its annual report on wage developments. The survey monitors the most significant changes in wage developments as part of the social partners’ negotiations on income policy (BG0607029I).
Main findings
Higher increase in women’s wages
In 2006, the average monthly wage in the country was BGN 355 (€ 181.5 as at 30 April 2007) with a nominal increase of 9.6% on an annual basis. This positive development is the result of the stable macroeconomic environment and the reduction of the social insurance contributions of employers. Last year, the average wage of men stood at BGN 384 (€ 196.3), while that of women was BGN 325 (€ 166.2). When comparing the increase in wages between women and men, women’s wages increased by 10.9% in 2006, while those of men only rose by 7.8%. The higher nominal wage increase of women, a recurring feature since 1998, has narrowed the gender pay gap to values comparable with those of the EU25 average. Nevertheless, it is important to bear in mind the very low wage level in Bulgaria compared with other EU Member States and the marginal increase of wages in real terms.
| 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006* | |
| Men | 100.0 | 82.6 | 119.4 | 104.4 | 102.2 | 99.0 | 100.5 | 102.1 | 100.1 | 105.5 | 100.5 |
| Women | 100.0 | 84.5 | 122.9 | 110.1 | 100.4 | 100.5 | 102.7 | 105.7 | 101.6 | 105.9 | 103.0 |
Note: * Preliminary data according to NSI data
Source: National Statistical Institute (NSI) and own calculations
Gender pay gap narrows
Despite the higher increases of female wages in nominal terms, men continue to earn more than women. The ISTUR analysis shows that in 1996 the average wage of women represented 69.1% of men’s wages. By 2006, it had increased to an equivalent of 84.8% of the average wage of men. This trend in the gender pay gap has significantly accelerated since 2002 (Figure 1).
Figure 1: Gender pay gap trends, 1996–2006 (%)
Source: National Statistical Institute (NSI) and own calculations
Gender pay gap trends, 1996–2006 (%)
Persistent segregation across sectors and occupations
Despite the decreasing average gender pay gap (15.2% in 2006), the pay gap continues to lie between 20% and 30% in some female-dominated sectors (Figure 2).
In 2006, in the textiles and wearing apparel sector, where 84% of the workers are women, the average wage of women was 74.0% of that of their male counterparts_._ A wider pay gap is also observed in other sectors where a higher number of women are employed, and where highly-skilled workers are needed, such as in the education and healthcare sectors. In education, despite the decreasing gender pay gap in recent years, women still earn only 80.7% of the wage of their male counterparts, while in healthcare and social work the gap is 70.7% with an increasing earnings differential between women and men_._
It is interesting to note that, in 2006, female wages were higher than those of men in some male-dominated sectors. For instance, in construction where women only account for 12.5% of the workforce, their wages are 7.3% higher than those of their male colleagues. In the real estate sector, women also have higher wages (3.7%) than men.
Figure 2: Gender pay gap, by sector, 2000 and 2006
Source: NSI and own calculations
Gender pay gap, by sector, 2000 and 2006
An analysis of the latest official data on earning differentials between women and men by occupation (2002) reveals significant gender pay gaps. Women encounter difficulties in accessing management positions and also face significant discrimination in terms of wages. The data revealed that women in managerial positions earn only 83.3% of the wages that men receive in the same positions. While the average gender pay gap stands at 18%, it increases to 22.7% for professionals; 23.5% for technical and associated professionals; 23.7% for plant and machine operators and assemblers. The highest gender pay gap of 41.3% is found among craft and trade workers. Conversely, female clerks earn 4.2% more than their male colleagues in the same occupation.
Commentary
The country’s preparation in light of its accession to the European Union in January 2007 positively influenced the adoption of gender equality legislation. The integration of a gender dimension into labour market and social inclusion policies has contributed to the promotion of a number of measures aimed at increasing the participation of women in the labour market and reducing pay gaps. However, despite the positive and steady trend towards closing the gender pay gap observed since 2002, in some sectors it remains high and almost unchanged. This is mainly due to the following reasons: the traditionally lower position of women in the professional hierarchy; persistent sectoral segregation of women; and the existence of stereotypes which lead to a restrictive attitude regarding remuneration in the predominantly-female sectors to persist.
References and further information
Institute for Social and Trade Union Research (ISTUR), Income policy and wage developments, Analytical report, ISTUR, 2007.
National Statistical Institute, Survey on the wage structure in 2002, NSI, 2004.
For further information at EU level, see the Foundation background paper on The gender pay gap, which briefly explores different facets of the ‘gender pay gap’ issue, based on data collected from the European Industrial Relations Observatory (EIRO) report Pay developments 2005 and the fourth European Working Conditions Survey, published early in 2007.
Violeta Ivanova, Institute for Social and Trade Union Research (ISTUR) of CITUB
Eurofound recommends citing this publication in the following way.
Eurofound (2007), Trend towards narrowing of gender pay gap, article.
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