Efremova: The minimum wage in 2027 will not be 620.20 euros

GERB-SDS and "We Continue the Change" have referred provisions of the budget to the Constitutional Court, with the complaints already filed. The Ombudsman is also criticizing key provisions. Among the disputed topics are the minimum wage and the recognition of length of service.

"These texts have quite a serious budgetary effect, and that is precisely why they were included in the draft Budget Act. We must recall that the texts were discussed in the Tripartite Council for National Cooperation. These are not texts that were introduced through the back door and at the last minute. These are discussed texts. Of course, there were discussions about them; I am not saying they were approved, but there was time for discussion. These are fair texts. In both cases, it is a matter of, on one hand, helping to revive the economy and, on the other, correcting the way the minimum wage is determined," stated Minister of Labor and Social Policy Nataliya Efremova in the studio of "Delyat ON AIR".

A new formula for calculating the minimum wage is being sought

When asked whether the minimum wage will be 620.20 euros as of January 1, 2027, Efremova replied: "I believe it will not be 620.20 euros. The most important thing is to have a good dialogue with the social partners, to sit down at the table, and to find the right solution. We have been talking about this topic for more than two years, I would even say three. Everything that could be discussed has already been discussed, and from now on, it is time to cut the knot and find the most correct way for this to be agreed upon."

The minister pointed out that the formula for determining the minimum wage is currently being discussed with social partners.

"Economic and social parameters, the population's purchasing power, inflation, opportunities, and the growth of average incomes must be taken into account. There are many criteria that can be used. It is extremely important to use national statistics as the official data source – this is the most correct way to rely on verified data. From there, the conversation must continue toward which criteria should be used," Nataliya Efremova added on air on Bulgaria ON AIR.

According to her, for the budget to be prepared, all main indicators must be clear in advance. The minimum wage is among these parameters because it affects a number of sectors, and for the preparation of the budget, it is necessary to know its level as early as possible.

"The sooner, the better. It is important to have a decision by the middle of September. We have sent out invitations for talks. The first meeting will be as early as next week. It cannot be the only one – there will likely be a series of meetings. We already have the support of the Ministry of Finance. It is very important for there to be a partnership between the state, trade unions, and employers in these negotiations," the minister commented.

Balance between employers and trade unions

Efremova is firm that the goal is to find a balance between the interests of employers and trade union organizations.

"The current formula for calculating the minimum wage, which is also in force this year, does not meet the requirements of the Minimum Wage Directive. It can also be determined by sector when we have a good dialogue between employers and trade unions. This is the best option and the best test of the potential we are building together," the guest on the show emphasized.

The four-hour workday and length of service

Meanwhile, it is proposed that from next year, the four-hour workday should not be counted as full-time employment.

"A large part of the people who officially work part-time did not know that this is actually not time that is recognized for full social security service. This was one of the first motives for the proposal for such a change – to give people the opportunity to seek justice. It is not a matter of depriving anyone who actually works four hours of their rights. The change to the four-hour contract has one main function, and that is precisely why it is set out in the State Budget Act – bringing the economy out of the gray sector," stated Nataliya Efremova.

The pension cap

"This year, the proposal in state social insurance was for the pension cap to remain, but it must be taken into account that very few people reach this cap. From this point of view, we are planning for there to be an upward movement next year. This will be a request that I will defend before my colleagues. For 10 years, these thresholds have not been increased or discussed. Anyone who is compliant will not even be affected," the minister added.

"If we had not discovered the unpaid expenses and if some accounting gymnastics had not been done with the budget, there could certainly have been one more budget for this year. We have met the requirement for optimal social spending. This week, the start of the new budget procedure was officially announced. I will seek a balance so that there is no opposition against any of the vulnerable groups – neither toward pensioners, nor mothers, nor young people. We are considering all these groups to whom we have commitments, not just from the point of view of increasing expenses, but also in terms of a more effective way of providing funds," explained Nataliya Efremova.

She assured that the topic does not only concern mothers and the payment amount during the second year of maternity leave, but the entire package of family benefits for families with children.

"We will make our proposals in such a way as to secure higher amounts for the next year," said the minister.

"We reduced the costs for the maintenance of our entire structure. This applies not only to the ministry but also to the agencies. A review and functional analysis are being carried out to determine which structures duplicate their functions and what can be optimized. The most important thing is not to put the services we provide to citizens at risk. They should not feel a difference in service. However, we also have vacant positions because, in some agencies, the remuneration is not high enough," Efremova further revealed.

State Social Insurance

"State social insurance was also seriously rethought as a problem. The decision for low levels of insurance was made a long time ago in order to be more attractive and to have a flat budget in the country. A return not just to a 3-percent deficit, but to a balanced budget as a whole is possible if there is discipline, which we are trying to introduce," she concluded.