Bulgaria adopts new minimum wage rules and extends pension services

The Bulgarian Council of Ministers has approved new regulations for determining the minimum wage and extended the mandate for Bulgarian Posts to distribute pensions.

Under the new mechanism, the minimum wage will be calculated based on socio-economic criteria following negotiations between unions and employers. Each year by August 15, the Cabinet will set the minimum monthly remuneration for the following year within a specific range. The lower limit will be the current minimum wage, while the upper limit will be determined by a formula considering purchasing power, cost of living, wage growth rates, and labor productivity. Additionally, a commission will assess the adequacy of the minimum wage every three years using median salary and cost-of-living benchmarks.

Furthermore, Bulgarian Posts is authorized to continue distributing pensions through its postal stations until June 30, 2031, under existing conditions. Pensioners may collect payments at any postal station, and home delivery remains available for individuals aged 68 or older or those with permanent disability. The government has also increased the maximum annual state aid threshold for this public service to 20 million euros to compensate the company for the financial burden.