Minimum Wage for 2026: Experts with Sharp Comments on the Determination Mechanism

16.08.2025 | Social policy

Trade unions and employers in Bulgaria are in a sharp dispute regarding the formation of the minimum wage for the next year, with expectations that it will reach around 1,213 leva.

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The upcoming publication of a draft resolution by the Council of Ministers regarding the minimum wage (MW) has sparked serious discussions among social partners. The current MW is 1077 leva, with experts predicting significant changes for 2026.

According to the current Labor Code, the minimum wage is determined based on a specific calculation mechanism. The specific methodology includes calculating 50% of the average gross wage for a 12-month period covering the last two quarters of the previous year and the first two quarters of the current year.

Lyuboslav Kostov, chief economist of the Confederation of Independent Trade Unions in Bulgaria, emphasized the critical need to apply existing legislation. According to his calculations, the minimum wage for next year should reach 1213 leva. "We are observing a positive growth trend over the past three years," the expert commented.

Trade union representatives insist that the MW should reflect the real cost of living, while employers focus on economic parameters. Social Minister Borislav Gutsanov has already announced that with the current mechanism maintained, the wage will be around 1200 leva.

Dr. Teodor Dechev from the Association of Industrial Capital expressed concern that the existing formula may contradict international labor conventions. "Employers have made efforts to reach a consensus with the trade unions," he emphasized.

Former Social Minister Hristina Hristova analyzed the long-standing problem of lack of agreement between social partners. According to her, the key question is whether the MW should be viewed as a social or economic category.

Experts note that in recent years, there has been a steady trend of increasing the minimum wage. However, significant disagreements remain regarding the methodology for determining it.

The upcoming meeting of the National Council for Tripartite Cooperation in September is expected to be a key moment for clarifying the parameters of the MW for 2026. Social partners will need to reach a consensus on the extremely sensitive issue of minimum wage.

The ultimate goal of all participants in the discussion remains creating a fair and economically justified mechanism for determining the minimum wage that meets both the interests of workers and the capabilities of employers.