The minimum wage will be higher from January 2025, although no new budget has been adopted, informs bTV.
The increase comes into effect with a government decree, published in October in the State Gazette.
With it, the minimum wage is raised from 933 leva to 1,077 leva. The increase is 15.4%.
Here is how the minimum wage has increased over the last 5 years:
2021 – 650 leva
2022 – 710 BGN
2023 – 780 BGN
2024 – 933 BGN
2025 – 1077 BGN
According to the unions, the increase next year will be felt a little more by those working on the minimum wage.
“Previous years they couldn't, because inflation was higher and our battle was to compensate for this inflation, at least so that they don't lose purchasing power. Now I think that with lower inflation this growth of 15% can finally give a more tangible growth in purchasing power, I hope they will feel it“, commented the chief economist of the Confederation of Bulgarian Trade Unions, Lyuboslav Kostov.
And the business reports something else – the increase in the minimum wage violates the principles of fairness in pay.
“Low-skilled workers who receive the minimum wage will bring the average-skilled closer together, this is a serious conflict of income policy not only in the state, but also in a single enterprise“, believes Dobrin Ivanov from the Association of Industrial Capital.
In order to cover the increase in wages, which also pushes other wages up, many enterprises are freezing investments, which makes them uncompetitive, employers also report.
In some cases, a higher salary can also mean a reduction in staff or a shadow economy, economists believe.