The minimum wage in Bulgaria will be €660 from January 1, 2027, while the poverty line will reach €443. The increase in the lowest remuneration is €39.80, or 6.4%, compared with €620.20 in 2026. The poverty line is rising by €52.37, or 13.4%.
These figures are part of the parameters of the 2027 budget framework. Minister of Labour and Social Policy Natalia Efremova said that the proposal for the minimum wage takes into account the social and economic function of remuneration and the capabilities of the state budget. Regarding the poverty line, she said: “The new amount has a positive impact on the adjustment of various types of assistance.”
A higher nominal wage will not automatically mean a higher standard of living. The draft budget includes average annual inflation of 4% in 2027, while the forecast of the Bulgarian National Bank is 3.1%. Under both scenarios, the increase in the minimum wage exceeds the expected rise in prices, but the difference may be limited by the prices of food, housing, transport and services.
Data from the National Statistical Institute show the structure of expenditure. In 2025, the average total expenditure per household member was €6,473 per year. An average of €1,898 was spent on food and non-alcoholic beverages, or 29.3% of all expenditure. Housing, water, electricity and fuels cost an average of €696 per person, while transport accounted for €448.
Pensions are expected to be adjusted from July 1, 2027, under the Swiss rule, which takes into equal account the growth of insurance income and inflation in the previous year. The final percentage has not yet been fixed. Pension expenditure in the State Public Insurance budget is planned to increase by €1.1643 billion compared with the 2026 law, while the effect of the adjustment is estimated at €552.6 million.
The allowance for raising a child up to the age of two is expected to increase from €398.81 to €450. An increase is also planned for 9 of the total 12 types of family benefits, as well as for tax relief for children.
Changes are also planned in social security. The maximum insurable income will increase to €2,400, while the minimum insurable income for self-insured persons will be aligned with the minimum wage—€660. The basic income tax rate will remain 10%, and the health insurance contribution—8%.
The draft provides for the maximum value of food vouchers to reach €200, with the amount above €102.26 subject to 7% taxation. It also proposes increasing the tax on in-kind expenses for the personal use of company assets from 3% to 7%.
Separately, a 30% adjustment of the basic tax values of real estate is planned. This does not automatically mean a 30% higher tax for every owner, since the final liability depends on the rate set by the respective municipality.
Thus, in 2027, people working for the minimum wage, pensioners, families with children and recipients of social support will have higher nominal incomes or benefits. For households with one working person, people on low pensions, self-insured persons and employees with higher incomes, however, inflation and the new social security obligations will be more significant.