In connection with the draft Decree of the Council of Ministers published for public discussion on the public consultation portal on determining the amount of the minimum wage for the country from January 1, 2026, the Association of Industrial Capital in Bulgaria (AIKB) expressed its opinion:
On February 1, 2023, the National Assembly of the Republic of Bulgaria adopted the Law on Amendments and Supplements to the Labor Code (published in the State Gazette, issue 14 of February 10, 2023), according to which the Council of Ministers is obliged to determine the minimum wage for the country annually by September 1. According to the provisions, it must be 50% of the average GROSS wage for a twelve-month period, which includes the last two quarters of the previous and the first two quarters of the current year. According to Art. 244 of the Labor Code, the BASIC minimum wage cannot be lower than that established in the previous year.
This legislative change is a wrong and HARMFUL attempt to transpose Directive (EU) 2022/2041 and is the result of the desire of MPs from different parliamentary groups to win voters through populist proposals.
In violation of the principles of tripartite dialogue and the requirement of Directive (EU) 2022/2041 to encourage it, a draft Decree of the Council of Ministers, published on 26.08.2025, was proposed for public discussion, which, following the simple linear logic of Art. 244, proposes a BASIC minimum wage of 1213 leva (620.20 euros).
The Association of Industrial Capital in Bulgaria, in its capacity as a responsible social partner and nationally representative employer organization, expresses a categorical position against the proposal of the Council of Ministers to increase the minimum wage (MW) to 1213 leva (620.20 euros) from January 1, 2026, which represents a growth of 12.6% compared to the current amount of 1077 leva. This proposal, although presented as a measure to support the incomes of nearly 600,000 people, ignores the serious economic risks and imbalances that are already manifesting themselves in the Bulgarian labor market. AIKB insists on revising the proposal and proposes not to increase the minimum wage for 2026, as it has already increased ahead of schedule over the past three years, significantly exceeding objective economic indicators.
AIKB insists on repealing Art. 244 of the Labor Code, the inadequacy of which is at the root of the current problems. The provision contradicts Convention No. 131 of the International Labor Organization concerning Minimum Wage Fixing of 1970, ratified by Bulgaria in 2018, as well as being contrary to Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union.
AIKB insists that the Council of Ministers withdraw the proposal to increase the minimum wage for 2026 and maintain its current amount. This is necessary to avoid additional imbalances in the labor market, to maintain the competitiveness of the Bulgarian economy and to ensure a stable transition to the Eurozone.
AIKB appeals for action to be taken in the short term to repeal Art. 244 of the Labor Code and to develop an adequate mechanism for determining the minimum wage, with real and effective participation of the social partners in the process, confirming the contractual principle and based on objective economic criteria reflecting the real development of the economy, the labor market and purchasing power, in compliance with European legislation.