Bulgaria's new minimum wage formula fails to win consensus as Podkrepa objects
Bulgaria's minimum wage will be set within a range, capped at 672.80 euros for 2027. Employers and the CITUB union back the plan, while the Podkrepa union opposes it.
Archive image · Photo: Radosław Botev / Wikimedia Commons, CC BY 3.0 pl (cropped and resized)
Bulgaria's National Council for Tripartite Cooperation failed to agree on Monday on a new formula for the minimum wage. Social Minister Natalia Efremova presented the changes to the wage regulation. The minimum wage will no longer be pegged at half the average wage. Instead, it will be set within a range. The floor is the current amount. The ceiling is calculated from four equally weighted indicators: living costs, median and average wages, wage growth and labour productivity. For 2027, the ceiling would be 672.80 euros. The government has the final say.
Employers and the CITUB union confederation broadly support the draft. CITUB wants the old method used for 2027, however, which would give around 692 euros. The Podkrepa union opposes the formula. Its chief economist, Atanas Katsarchev, said workers would lose at least 20 euros a month. He added that the mechanism relies on data more than two years old. A worker from Ruse told BNT that the current wage of around 620 euros was not enough for food or clothing.
Finance Minister Galab Donev said the government was working to finalise the budget bills. BNT said the 2027 draft budget is expected by the end of October. The tripartite council is due to discuss tax changes in a week. These include a windfall profits tax and tax relief for parents.