Total Payroll cost in Bulgaria rose 15.9% year-on-year which ranks the country fifth on the list of EU countries whith most increasing payroll costs, shows Eurostat statistics.

Employers' costs on salaries which is the major component of payroll costs rose 17.3% in first quarter and other costs related to employees' pay grew 9.4%.

The increase is not surprising taking into consideration the fact that this first quarter is the first for Bulgaria as a member of the European Union and that wages in the country are far lower than in the other member states.

By comparison, payroll costs increased 4.1% in 2006 last quarter, 6.2% in 2006 third quarter and 4.4% in its second quarter.

Latvia is the country where payroll costs increase the most – by 32.6%, followed by Romania – 25%.

Lithuania ranks third with 22.2% and Estonia is fourth with 21.1%. The figures are good for the population of the countries mentioned and not so good for foreign investors.

Hungary ranks sixth immediately after Bulgaria with 9% increase.

Total payroll costs in the 13 member countries of the Eurozone increased 2.2% in first quarter (unchanged from 2006 last quarter).

In the 27 EU memeber countries the total increase stands at 3.7% in first quarter, compared with 2.8% for the preceding three months.

According to Eurostat the increase is smallest in Germany – 0.1% in 1Q, followed by Malta – 1.4% and Belgium – 2%.