A minimum wage of 690 euros next year and an increase in incomes by at least 10% - this is what the CITUB insists on before the presentation of the 2027 budget. The union is organizing a protest march and rally on Friday in Sofia to state its demands before the final formation of the state's financial framework. They also expect specific answers from the business community about the budget parameters, warning of increasing costs for employers and an additional tax burden.
„People's expectations are for their incomes to continue growing, but there are no clear messages in this direction. We heard from the prime minister only yesterday. Until then, there was nothing concrete“, he said in the „Interview in NOVA News“ the president of the Confederation of Bulgarian Trade Unions Plamen Dimitrov.
According to him, the increase in salaries in the budget sector by 5% is not enough to compensate for the increase in prices that people feel every day. The union insists that the minimum wage reach 690 euros, and that incomes increase by at least 10%. The request applies to both the budget sector and those working in the real sector.
Dimitrov pointed out that the protest actions were organized in a short time after initiatives in different cities. According to him, the goal is for workers to clearly state their position before the budget for next year is submitted.
The issue of the minimum wage is also related to the mechanism for its determination, which was agreed upon between the social partners. Dimitrov emphasized that the union is not giving up on the agreement reached, but according to him, the regulatory framework is not yet complete. “I am not giving up on what was agreed. We agreed together and these rules will apply in the future. It is based on them that we will determine the minimum wage, but not for 2027“, he said.
The Bulgarian Industrial Chamber also supports the mechanism for determining the minimum wage, but pays attention to the other costs that business must cover. Stanislav Popdonchev pointed out that enterprises do not only hire people on the minimum wage and that the assessment of budget proposals must take into account the overall burden on employers. “Business fully supported this mechanism, as did colleagues from the Confederation of Bulgarian Trade Unions“, he said. According to him, the compromises made when discussing the cost of living and the adequacy of the minimum wage do not change the principle for its determination.
According to him, however, the proposed increase in the maximum social security income must also be taken into account. With the specified parameters, the maximum social security income is expected to reach 2,400 euros, which would increase the social security burden for workers with higher incomes and their employers.
Popdonchev also expressed reservations about some of the proposals for changes in tax legislation. Among the controversial measures are the taxation of excess profits in certain sectors and the tax treatment of food vouchers, where, according to him, the additional burden could also affect workers.
The Confederation of Bulgarian Trade Unions also insists on a careful approach to changing the tax assessments of single dwellings, especially when it comes to elderly people and low-income households. Plamen Dimitrov believes that there is a possibility for higher incomes, without this automatically meaning a deterioration in the budget balance. According to him, the projected economic growth could provide additional tax revenues that could be directed towards increasing wages.
Businesses said that a final assessment of the budget can only be made after the presentation of all parameters and talks with the Ministry of Finance. It is expected that it will then become clear how the costs will be distributed, what revenues are expected and what the real burden of the proposed measures will be on employers and citizens.