Bulgaria to determine 2027 minimum wage following budget clarification

The final amount for the minimum wage in 2027 remains undetermined as the Bulgarian government awaits the clarification of all state budget parameters. Prime Minister Rumen Radev stated that the determination of the minimum wage will follow the establishment of the 2027 budget framework, noting that the government's primary focus is budget consolidation and reducing the deficit.

Acting Minister of Labor and Social Policy Natalia Efremova explained that the Ministry of Finance currently holds only preliminary calculations. To establish the official level, a new regulatory framework is required. The government intends to move away from automatic wage increases, opting instead for a flexible mechanism aligned with European directives and International Labour Organization Convention No. 131.

This proposed model will establish minimum and maximum boundaries for dialogue between social partners. The minimum boundary will be the wage level from the previous year, while the maximum will be determined by a complex index weighing four indicators: purchasing power, wage distribution, wage growth rates, and long-term labor productivity. Amendments to the Labor Code are expected to be approved by the Council of Ministers in mid-September, with the exact minimum wage figure potentially becoming clear in early October.