The government proposes that the minimum wage be 660 euros from January 1, 2027. The draft decree has been published for public discussion by the Minister of Labor and Social Policy Natalia Efremova.
The proposed amount is 12.80 euros below the maximum value of 672.80 euros, which can be reached under the new formula. The amount is also 30 euros lower than the amount that would have been obtained under the previous automatic mechanism.
With a minimum wage of 620.20 euros in 2026, the increase next year will be almost 40 euros, or 6.4 percent. The draft was published hours after the cabinet approved changes to the regulation for determining the minimum wage.
New mechanism with four criteria
From 2027, the minimum wage will be calculated in a range. It includes labor productivity, median wage growth, inflation and the purchasing power of the minimum wage.
Labor Minister Natalia Efremova said at the presentation of the new mechanism: Its amount will be defined based on four criteria. The formula determines the maximum possible value, and the specific amount must be agreed upon between unions and employers. If negotiations do not lead to an agreement, the government can determine the amount.
The proposal of 660 euros is not yet final. It must go through public consultation and the subsequent procedure for adopting the decree.
Slowdown in growth expected
The data cited by the Ministry of Finance show a significant slowdown in increases compared to recent years. The minimum wage increased by 19.6 percent in 2024, by 15.4 percent in 2025 and by 12.6 percent in 2026.
For the period 2027-2029, increases of 6.4 percent, 3 percent and 4.4 percent are expected, respectively. According to the forecast cited by the Ministry, the minimum wage in 2028 will reach 680 euros.