The minimum wage in Bulgaria will be determined according to a new mechanism that takes into account not only the growth of remuneration, but also the increase in the cost of living and labor productivity. The proposed changes were discussed at a meeting of the National Council for Tripartite Cooperation and presented by Social Minister Natalia Efremova, Nova TV reports.
According to the project, the minimum wage will now be determined within certain limits. The lower one will be the minimum wage for the current year, and the upper one will be calculated using a formula that includes four economic and social indicators.
The first one will take into account the increase in the price of basic goods and services through the price index of the small consumer basket. The second one will monitor the change in the median wage - the remuneration that divides workers into two equal groups according to their income. The third indicator will be the annual growth of the average gross wage, and the fourth - the change in labor productivity, calculated based on data for the last 10 years.
Each of the four indicators will have equal weight in calculating the upper limit of the minimum wage. “All indicators, as we had agreed, have an equal weight of 25%, which we believe ensures a balance between the social and economic functions of the minimum wage“, said Minister Efremova.
It is planned that the amount of the minimum wage will be determined in two stages. First, the unions and employers will conduct negotiations, which must be completed by May 15. Then the government will determine the final amount of the remuneration for the next year no later than August 15.
The new rules also provide for an assessment every three years of whether the minimum wage is sufficient in relation to the cost of living and economic conditions in the country. The social partners will also participate in this assessment.
Changes are also proposed for the additional payment for night work. It is planned to drop the fixed minimum threshold of 51 euro cents per hour, but to retain the requirement that the additional payment be at least 0.15% of the minimum wage. “For 2026, this means no less than 93 euro cents for each night hour worked“, the Minister of Social Affairs specified.
The proposals are part of a draft amendment to the Regulation on the Structure and Organization of Wages. At this stage, the new mechanism has been discussed by the social partners, but has not yet been finally adopted.
► CT “Podkrepa“ against the new minimum wage formula: Workers will lose at least 20 euros per month
The proposed new mechanism for determining the minimum wage will harm people with the lowest incomes. This was stated by the chief economist of CT “Podkrepa“ Atanas Katsarchev after the meeting of the National Council for Tripartite Cooperation (NCTC), at which the changes to the Regulation on the Structure and Organization of the Wage were discussed.
According to him, the trade union organization is the only one that did not support the proposed formula. The main objection is that it will lead to a lower minimum wage than, according to the union, workers should receive.
„We are the only structure that did not support the minimum wage formula. In our opinion, it harms workers, first of all. Secondly, it does not correspond to the text of the already adopted Labor Code, which amends Article 244“, said Katsarchev.
He also expressed disagreement with the way in which the mechanism was developed. According to him, the use of different percentage indicators contradicts the principles laid down in labor legislation. “Last but not least, since the formula itself works with different parameters, mainly percentages, and according to the main criteria written in the Labor Code, these should be absolute numbers“, pointed out the chief economist of the Trade Union “Podkrepa“.
Katsarchev also presented a specific assessment of the financial consequences of the proposal.
“From this formula that is proposed, we have a loss of the minimum wage by at least 20 euros per month. So this is the main thing that we could say at the moment. For this reason, we do not agree to the loss of those working on the minimum wage“, he emphasized.
According to the draft presented by the Ministry of Social Affairs, the new mechanism will take into account four indicators with equal weight of 25% each - the increase in the price of basic goods and services, the change in the median and average wage, and labor productivity.
► BIA defended the new formula for the minimum wage: The goal is not to harm workers, but to find a balance
The new mechanism for determining the minimum wage is the result of lengthy negotiations and mutual compromises between employers, unions and the state. This was stated by Maria Mincheva from the Bulgarian Industrial Chamber after the meeting of the National Council for Tripartite Cooperation. She rejected the claims that the proposed formula contradicts the Labor Code or is intended to harm people with the lowest incomes.
Mincheva recalled that back in August, the social partners held talks with representatives of the Ministry of Finance and the Ministry of Labor and Social Policy, during which both the legislative changes and the texts of the ordinance were coordinated.
“The topic is quite complex and difficult to explain. What is important to note is that in August, both the texts of the Labor Code and the texts of the ordinance were coordinated with the social partners, the Ministry of Finance and the Ministry of Labor. The claim that the Labor Code requires talking about absolute values is categorically not true“, she said.
The BIA representative also commented on the criticisms against the four indicators that will be used in calculating the minimum wage. According to her, they were not chosen arbitrarily, but are based on official statistical information and are in line with discussions at the European level.
„The criteria and indicators included in the regulation were the subject of a very long discussion. They are based on official data that have been discussed by the European Commission with the Member States, so they were not chosen arbitrarily. There is a direct connection between the criteria included in the Labor Code and the indicators that we discussed in the regulation today“, emphasized Mincheva.
She was categorical that employer organizations do not seek to limit the incomes of workers. According to her, the goal is to create a sustainable mechanism that simultaneously takes into account the needs of people and the opportunities of business.
„Our goal is categorically not to harm anyone. Our goal is to form a mechanism that in the future will allow, first, the participation of social partners and, second, to take into account both the needs of workers and the capabilities of the economy“, explained the BIA representative.
Mincheva admitted that reaching an agreement was difficult and required concessions from all participants in the negotiations. She admitted that the mechanism could be changed in the future if practice shows the need for adjustments.
“We reached such a decision with great difficulty. Of course, it is not set in stone, but it is a starting point for which time will show how adequate it is and how applicable it is to our reality. But since this agreement was reached between us at the cost of mutual concessions and compromises, we stand by the word we gave, and we confirm this agreement today with the adoption of the regulation“, she said.
► CITUB: The new mechanism will increase the minimum wage, but the question is by how much and how quickly
The proposed new mechanism for determining the minimum wage will guarantee its upward movement, and for the first time its amount will depend on four indicators instead of one. This was stated by the President of the CITUB Plamen Dimitrov after the meeting of the National Council for Tripartite Cooperation. According to him, the formula provides the necessary balance between the social needs of workers and the economic opportunities of the country.
Dimitrov also commented on the criticism of the CT “Podkrepa“, which did not support the proposed mechanism with the argument that it will harm people with the lowest incomes. The President of the Confederation of Bulgarian Trade Unions (CITUB) emphasized that the four main criteria are already set out in the Labor Code and are in line with the European directive on adequate minimum wages.
“The four criteria that were written down and adopted in the Labor Code and to which the mechanism for determining the minimum wage must comply are actually not subject to any negative comment“, Dimitrov pointed out.
He explained that the choice of specific indicators was the result of lengthy discussions between unions, employers and the state. “Then, in the discussion on how to apply these four criteria, we came to this regulation. We spent long hours, including nights, trying to find the indicators. Are they the best? They probably aren't. Someone might find others. However, at the moment, these are the indicators that are on the table and that the government intends to propose“, he said.
According to him, the most important thing is that the new formula will allow the minimum wage to continue to increase, with the amount of the increase depending on the development of the economy and incomes.
“We believe that at the moment these indicators give a good reflection and balance of the social and economic parameters that need to be measured. On this basis, the minimum wage will move up. This is the first thing we need to say - this mechanism moves the minimum wage up. Are there any doubts on this issue? There is none. How much higher and how fast - this is already a matter of estimates, calculations and dynamics of the four indicators“, explained the president of the CITUB.
He pointed out that until now the determination of the minimum wage has been tied to one main indicator, while the new approach includes four, which, in his opinion, allows for a more balanced assessment. Plamen Dimitrov paid special attention to the indicator that takes into account the increase in the price of basic goods and services. He emphasized that for the CITUB the leading goal remains for the minimum wage to reach an amount that allows a person to cover their necessary expenses and live with dignity.
In response to a question about when the specific amount of the minimum wage is expected to be announced, Dimitrov indicated that the decision is in the hands of the government.
According to his forecast, clarity may be available within about a week, when the first budget estimates are expected to be presented.