Bulgarian Parliament adopts new minimum wage formula

The Bulgarian Parliament has passed a new formula for determining the minimum wage at its first reading. Unlike previous methods, the new mechanism will not automatically set a specific amount but will instead rely on four economic and social criteria: the purchasing power of citizens relative to a small consumer basket, the general level and growth rate of wages, the dynamics and distribution of labor remuneration, and labor productivity.

For 2027, the proposed range is between 620 and 672 euros, with the Ministry of Finance forecasting approximately 660 euros. Social Minister Natalia Efremova defended the move, stating the formula considers complex economic factors rather than simple arithmetic.

The proposal has faced significant opposition. Labor union leaders, including Dimitar Manolov of the Podkrepa union, have criticized the inclusion of labor productivity as a key criterion, arguing that productivity is not the sole responsibility of the worker and can be influenced by management or technical failures. Opponents also expressed concerns that the new mechanism lacks a precise implementation rule and could result in lower wages compared to the previous system.