Bulgarian Unions Prepare Strikes as Experts Say Next Year’s Wage Growth Will Be Negative

Business | November 20, 2025, Thursday // 08:25
Bulgaria: Bulgarian Unions Prepare Strikes as Experts Say Next Year’s Wage Growth Will Be Negative Photo: Stella Ivanova

The "Podkrepa" Confederation of Labour is preparing protests in response to the proposed 2026 state budget, warning that real income growth is set to turn negative. Atanas Katsarchev, chief economist of the union, criticized the draft budget, saying half-hearted policies yield no positive results.

Inflation currently stands at 5.3 percent, and when combined with planned changes to social security contributions and projected inflation for next year, real wages are expected to decline. “This is not acceptable for anyone,” Katsarchev said, referencing additional pressures from the ongoing fuel crisis and Bulgaria’s upcoming entry into the eurozone. He expressed particular opposition to a proposed 5 percent increase in personnel costs, describing it as insufficient given current economic pressures.

Katsarchev highlighted that extra material incentives given to certain administrations are discretionary and not a fair reflection of the overall system. In most government sectors, average salaries remain around 1,500–1,600 leva. Tensions are especially high in the Agriculture and Forestry sectors, as well as among state administration employees. The union is also monitoring decisions from the medical federation regarding healthcare workers’ pay.

Protests are expected to begin within the Agriculture sector, followed by broader administrative action. The union intends these demonstrations to serve as warnings, pressuring parliament to adjust the budget parameters between the first and second readings to address workers’ concerns.

The economist also raised issues with the planned social security contributions. While minimum and maximum social security income levels are set to rise, which increases workers’ obligations, some social security payments remain frozen, a combination that the union views critically.

Additionally, Katsarchev commented on proposals to formalize Christmas and Easter bonuses for pensioners. He suggested these payments could be managed through the National Social Security Institute but noted that, as social assistance, the Ministry of Labor and Social Policy should oversee the funds. He considered the idea of legalizing such supplements a positive step.

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Tags: Podkrepa, protests, Bulgaria, unions

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