Bulgaria develops new minimum wage calculation formula

Bulgarian authorities and social partners are developing a new mechanism to determine the minimum wage, intended to replace the current system of automatically linking it to 50% of the average gross salary by 2027.

Labor Minister Natalia Efremova and Deputy Prime Minister and Finance Minister Galab Donev announced that an interdepartmental working group has reached a principle agreement on the criteria for setting the lowest remuneration. The new formula will move away from a single indicator and instead consider multiple factors, including purchasing power, general wage levels in the country, wage growth rates, and labor productivity.

The proposed mechanism is expected to be reviewed and updated every four years to ensure the minimum wage aligns with the real economic situation and productivity. Officials aim to reach a general agreement on the topic by the end of August, with the final determination for 2027 scheduled for completion by late September.