From January 1 next year, the minimum wage in Bulgaria will increase by 40 euros to reach 660 euros, according to the instructions of the Ministry of Finance for preparing the state budget. In parallel, a jump in the maximum social security income to 2,400 euros is planned, which has caused mixed reactions among unions and employer organizations, BNT reports.
The new mechanism for determining the minimum wage is about to be voted on by the government and parliament. It provides for unions and employers to negotiate the amount of the lowest wage within pre-set limits, which currently vary between 620 and nearly 673 euros. The final decision, however, remains in the hands of the Council of Ministers.
For people with the lowest incomes, any increase is important, but often proves insufficient against the backdrop of inflation. Metodi Metodiev, who has been working as a host for the Municipal Football Club in Vidin for 16 years, commented: "The standard has become very expensive. But compared to now with these 610, we will be a little better off if the prices and so on are not touched." When asked what he would do with the additional 40 euros, he answered laconically: "I will cover my needs and nothing else."
The published three-year budget forecast is already causing tension among the social partners.
"We have stumbling blocks in the fact that the government's intentions have already been published. They have published for 3 years about the increase in the minimum wage by 20 euros and the third year by 30, which cannot but stress us," says the president of the "Podkrepa" Confederation of Bulgarian Workers' Associations Dimitar Manolov.
On the business side, they see the set 660 euros as a reasonable compromise. The deputy chairman of the Bulgarian Industrial Association Maria Mincheva notes: "As of now, a number cannot be specified for either 2028 or 2029. The number 660 euros is halfway between what the employers want and what the unions insist on. This is probably the number that is realistic for the budget to cover." The intention to increase the maximum social security income (MSI) to 2,400 euros is also causing serious debate. According to Maria Mincheva, this is "a rather sharp jump within a few months", considering that there was also an increase from September 1. However, Dimitar Manolov defends the increase, linking it to the pension system: "The Law states that the maximum pension should be three times smaller than the MOD. If it takes the current base, this ratio should be restored by increasing the MOD."
Business and unions also have different positions regarding the government's plans to increase the weight of a year of insurance service in the formula for calculating pensions. The unions warn that people whose service spans the 1990s of the last century, when there were massive gaps in insurance, will be harmed. According to employers, however, these vulnerable groups should be considered through targeted measures outside the general system, so as not to violate the basic principles of insurance.
Against this background, the Prime Minister has already announced that no increase in the insurance contributions themselves is planned for next year, although it is still not clear how the government will cover the shortfall in the State Social Insurance budget.