The National Council for Tripartite Cooperation concluded the discussion of the new mechanism for determining the minimum wage without consensus. The government, unions and employers considered changes to the Regulation on the Structure and Organization of the Wage, through which the formula is introduced.
According to the draft, the minimum wage will now be determined in a range. The lower limit will be the current amount of about 620 euros, and the upper limit is calculated at 672.80 euros. The final amount for next year will be determined by the Council of Ministers.
The change comes after the parliament voted that the minimum wage should not automatically be half of the average wage, as it was before. The new formula includes four indicators – purchasing power, median gross wages, wage growth rate and labor productivity.
The “Podkrepa” Trade Union sees a loss of 20 euros per month
The “Podkrepa” Trade Union did not support the proposed rules. According to the union’s chief economist, Atanas Katsarchev, the formula does not comply with the Labor Code and will reduce the minimum wage.
“Under this proposed formula, we have a loss of the minimum wage by at least 20 euros per month, which makes 480 euros per year“, said Atanas Katsarchev.The Confederation of Bulgarian Trade Unions supports the four criteria, but insists on using the old calculation method for 2027. Under this option, the minimum wage would reach 692 euros. The President of the Confederation of Bulgarian Trade Unions Plamen Dimitrov stated that the current indicators provide a balance between social and economic parameters and that the mechanism moves remuneration upwards.
Employers supported the formula. The Deputy President of the Bulgarian Industrial Chamber, Maria Mincheva, pointed out that the goal is to create a mechanism that takes into account both the needs of workers and the opportunities of the economy.
Workers insist on at least 1,200 euros
For people who receive the minimum wage, the planned increase remains insufficient. Pavel Bozhev from Ruse, who works as a landscaper, said that his current income is mainly enough for household bills and pocket money for his children.
“There is no food, clothes, or anything else. It is very difficult“, said Bozhev. According to him, the minimum wage should be at least 1,200 euros.Machine operator Petya also indicated 1,200 euros as an acceptable amount. She said that workers often spend 12 hours at work, and heating costs put an additional burden on family budgets.
The minimum wage is planned to be determined in two stages, with final clarity on the amount to be achieved by August 15 of the previous year. The mechanism will be evaluated every three years. Next week, the tripartite council will discuss the proposed tax changes, and the draft budget for next year is expected by the end of October.
Sources: bntnews.bg, mlsp.government.bg, bnrnews.bg