Minimum Wage Dispute in Bulgaria: Unions Push 620€ Increase, Employers Resist

Business » FINANCE | October 6, 2025, Monday // 15:00
Bulgaria: Minimum Wage Dispute in Bulgaria: Unions Push 620€ Increase, Employers Resist @novinite.com

The National Council for Tripartite Cooperation (NCTC) in Bulgaria once again failed to reach a consensus on the country’s minimum wage for 2026. The government’s draft decree proposes an increase from the current 1,077 leva (≈550.90 euros) to 1,213 leva (≈620.20 euros) starting January 1, 2026, reflecting a 12.6% rise. Social Minister Borislav Gutsanov presented the draft and emphasized that the increase would benefit around 600,000 workers, including nearly 30,000 in state-financed social services, participants in employment programs, and professional foster families. He noted that the adjustment would help reduce poverty and strengthen purchasing power across the workforce.

Despite the proposal, the business sector opposed the increase. Representatives from the Association of Industrial Capital and the Bulgarian Industrial Chamber argued that the minimum wage has already risen ahead of schedule over the past three years and exceeds objective economic indicators. All four employer organizations present in the NCTC called for a review of the current mechanism in the Labor Code, which sets the minimum wage at 50% of the average monthly salary over a 12-month period. Some employers voiced outright opposition to the planned hike, while others abstained.

Trade unions, however, including the Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Podkrepa Confederation of Trade Unions, supported the proposed increase. CITUB President Plamen Dimitrov emphasized that, in the future, all incomes - including the minimum wage - should be linked to a living wage benchmark. He suggested that the National Statistical Institute (NSI) develop a methodology aligned with the International Labour Organization (ILO) standards, adapted to Bulgaria, and monitored by a tripartite committee to serve as a reference for income setting in the country.

Minister Gutsanov stressed the urgency of increasing the minimum wage, citing Eurostat data that show Bulgaria at the bottom of the EU’s minimum wage rankings. Central and Eastern European countries generally have lower minimum wages, but Bulgaria’s current level of 551 euros remains the lowest, with Hungary second at 707 euros. According to Gutsanov, freezing the minimum wage under current economic conditions would be unacceptable. He argued that citizens need to feel reassured that the state is actively supporting income growth and ensuring a fair standard of living.

With no agreement reached at the NCTC, the Ministry of Labor and Social Policy must now take the necessary steps to implement the increase in accordance with Bulgarian law, despite the ongoing dispute between employers and unions.

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Tags: Bulgaria, minimum wage, increase

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