Bulgaria weighs minimum wage hike, windfall tax as minister cites ‘hidden deficit’

Bulgaria’s National Council for Tripartite Cooperation, which brings together the government, trade unions and employers, met in Sofia on Friday morning to discuss the 2027 minimum wage and tax changes, BTA reported. The government proposes raising the monthly minimum wage from 620.20 euros to 660 euros on Jan. 1, an increase of 6.4%. The ceiling under the new calculation mechanism is 672.80 euros.

The Finance Ministry’s package amends seven tax laws. According to media reports, it includes larger tax relief for parents, a one-off 33% levy on extraordinary profits of banks, insurers, telecom companies and some retail chains, a 30% rise in base values for property tax assessments and a new excise duty on cars with more than 250 kilowatts of power. Employer groups have warned the windfall tax could hurt investment.

Finance Minister and Deputy Prime Minister Galab Donev said at the start of the session that tax policy is “not only a question of revenue,” BNT reported. Citing Eurostat data showing a 2025 deficit of 4% of GDP, he said the “hidden deficit” he had spoken of in the summer “is now clear,” adding that the effects would carry into future budgets. The final decision rests with the government and parliament.