The Parliament has finally approved the new mechanism by which the minimum wage in Bulgaria will be determined. The changes to the Labor Code were adopted on second reading after several hours of debates in the plenary hall. In the final vote, the bill submitted by the Council of Ministers received the support of 123 deputies from the ruling majority of “Progressive Bulgaria“.
48 deputies voted against the changes - 16 from GERB-SDF, 13 from DPS, two from “Democratic Bulgaria“, seven from “Continuing the change“ and 10 from “Vazrazhdane“. Another 12 deputies from the DB abstained.
According to the finally adopted texts, the minimum wage for the next year will have to be determined by August 15 of the current year. When calculating it, four main indicators will be taken into account - the purchasing power of the minimum wage, including the cost of living, the general level and distribution of wages in the country, the rate of wage growth and long-term levels of labor productivity.
Every three years, an assessment will be made of whether the minimum wage is adequate. Two reference values will be used for this - 60% of the gross median wage and the cost of living. The specific procedure for determining the minimum wage will be prescribed by an ordinance of the Council of Ministers.
The minimum wage in 2027 could be between 620 and 673 euros.
The changes to the Labor Code allow for collective labor agreements to negotiate minimum wages above the level set for the country, both at the sectoral and industry level. For the first time, the law also introduces an explicit definition of the minimum wage. It is defined as the lowest basic monthly wage for time worked or according to the work done.
The majority did not support the opposition's alternative proposals. GERB-SDF, DPS and “We continue the change“ insisted that the adequacy assessment be carried out every two years and include additional indicators. The PP's request to maintain the old formula in 2027 - the minimum wage to be 50% of the average gross salary - was also rejected.