Bulgaria recorded the highest annual growth in hourly labor costs in the European Union during the second quarter of 2026. With an increase of 9.9 percent compared to the same period last year, the country outperformed the EU average (3.2 percent) and the eurozone (3 percent), according to the latest Eurostat data released today.

Total hourly labor costs in Bulgaria are increasing by 9.9 percent year-on-year in the second quarter of 2026. At this rate, non-wage costs are rising by 10 percent, whereas in the first quarter of the same year, total labor costs in the country were 13.4 percent higher. At that time, non-wage costs had increased by 14.2 percent, while wages and salaries rose by 13.2 percent.

This statistical parameter includes gross wages and salaries in cash and in kind, including bonuses and additional payments to employees.

Following Bulgaria in the growth rate of hourly wages and salaries are Lithuania (9.6 percent) and Croatia (8.9 percent). In the first quarter of this year, Bulgaria ranked second in the EU with a growth of 13.2 percent, while Hungary held the top position at 16.4 percent. The lowest increases were reported in Luxembourg and Romania—both at 1.8 percent—followed by France and Italy at 2.1 percent each.

Across the entire EU, there is a visible trend toward slowing growth rates in hourly wages and salaries. They have decreased from 4.4 percent in the second quarter of 2025 to 3.7 percent in the first quarter of this year, and to 3.2 percent in the second quarter. A similar slowdown is observed in the eurozone, where growth is steadily falling from 4.1 percent to 3.4 percent and 3 percent.

Eurostat clarifies that total hourly labor costs include wages and salaries, as well as employer social security contributions and employment taxes (after deducting subsidies received by the employer). Bonuses are considered part of wage and salary costs, rather than non-wage costs.

Regarding total hourly labor costs in the EU, the average growth in the second quarter is 3.2 percent, with both wage costs and non-wage costs increasing by the same value of 3.2 percent. In the eurozone, the total increase is 3.1 percent—wages and salaries are rising by 3 percent, while other costs are up by 3.2 percent. This overall indicator also shows a slowdown: after 4.5 percent and 4.1 percent in the second quarter of 2025, the increase dropped to 3.5 percent and 3.3 percent respectively in the first quarter of this year.

The rise in labor costs in the country has a direct impact on the economic environment and the labor market in Burgas and the region.

The distribution of total hourly labor costs by main economic activities in the EU shows the following levels:

  • construction — 3.9 percent;
  • services — 3.1 percent;
  • industry — 3 percent;
  • non-business economic activities — 3.3 percent.
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