Bulgaria's minimum wage is set to rise to 1,077 leva (550 euros) from January 2025, despite the absence of an adopted budget for the year. The increase, implemented through a government decree published in the State Gazette in October, marks a 15.4% hike from the current 933 leva.

This adjustment follows a pattern of steady increases over the past five years. In 2021, the minimum wage was 650 leva, rising to 710 leva in 2022, 780 leva in 2023, and 933 leva in 2024. Next year’s change reflects continued efforts to support workers amid evolving economic conditions.

Union representatives suggest that the upcoming increase may have a more noticeable impact for those earning the minimum wage. Luboslav Kostov, chief economist of the Confederation of Bulgarian Trade Unions, explained that high inflation in previous years had eroded purchasing power, with wage adjustments primarily aimed at offsetting inflationary pressures. "With inflation now lower, this 15% increase could finally translate into a tangible improvement in purchasing power," Kostov told bTV.

However, business representatives express concerns about the broader implications of the wage hike. According to Dobrin Ivanov of the Association of Industrial Capital, the increase disrupts pay fairness by narrowing the gap between low-skilled and medium-skilled workers, creating challenges for income policy both at a national level and within individual enterprises.

Employers also point to potential negative consequences, including reduced investment due to the rising wage burden, which they argue hampers competitiveness. In some cases, higher wage costs may lead to workforce reductions or an expansion of the shadow economy, economists warn.

The increase reflects ongoing tensions between supporting workers’ livelihoods and addressing the economic pressures faced by businesses. As the new wage takes effect, its impact on Bulgaria’s economy and labor market will continue to unfold.

Sources:

• bTV
• Novini.bg