Bulgaria: no consensus on 660-euro minimum wage, dispute over windfall tax
Employers back the government's proposal for 2027, while unions reject it. A planned 33% tax on windfall profits draws criticism from business.
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Bulgaria's National Council for Tripartite Cooperation failed on Friday to agree on the minimum wage for 2027. The government proposes raising the monthly minimum wage on Jan. 1 from 620.20 euros to 660 euros. Labor and Social Policy Minister Natalia Efremova said that is an increase of 39.80 euros, or 6.4%, exceeding annual inflation of 5.7%. About 462,000 workers would benefit, and the minimum hourly rate would be 3.98 euros. The proposal reflects what the state budget can afford, Efremova said, according to news agency BTA.
The four major employers' organizations backed the figure, while the KNSB and Podkrepa trade unions opposed it. Podkrepa Vice President Ioannis Partheniotis said 660 euros "in no way guarantees a decent life," noting that a full-time worker would take home 512.16 euros net, Fakti.bg reported. He said Bulgaria still has the lowest minimum wage in the EU. According to bTV, the final decision rests with the government regardless of the council's positions, and it is expected within weeks.
The 2027 tax package won broader support. It includes higher child tax relief and a gradual increase in the VAT registration threshold from 51,130 euros to 60,000 euros in 2027 and up to 75,000 euros in 2029. More contentious is a one-off 33% tax on windfall profits of banks, insurers, mobile operators and large retail chains, which the Finance Ministry expects to raise 800 million euros. The Bulgarian Industrial Association opposes it. Finance Minister Galab Donev pointed to a 2025 deficit of 4% of GDP according to Eurostat data and called for fiscal discipline.