Bulgaria negotiates new annual minimum wage mechanism

Bulgarian government, employers, and trade unions are negotiating a new mechanism to determine the minimum wage, which will be updated annually. While consensus has been reached on four key indicators—inflation of a small consumer basket, median wage levels, average wage growth, and long-term labor productivity—disagreements remain regarding the specific weight of these factors and the final wage amount for 2027.

Labor unions, including the ‘Podkrepa’ Trade Union, have proposed a range between 692 and 750 euros for 2027. They argue against using household expenditure as a metric, preferring indicators that reflect actual labor income. Conversely, employers have expressed opposition to double-digit increases.

Minister of Labor and Social Policy Nataliya Efremova stated that the minimum wage will not remain at its current level of 620 euros for 2027. If social partners fail to reach an agreement by the established deadlines, the government will determine the minimum wage independently during the 2027 budget procedure.