Minimum wage 2026: how much it is, how it changes, and what it means for workers

From January 1, 2026, the minimum wage in Bulgaria is officially increased from 1,077 BGN to 1,213 BGN. This increase of 136 BGN represents a growth of 12.6% compared to the previous year and applies to all employees under labor contracts in the country. The new amount was determined by Council of Ministers Decree No. 243 of November 2025 and applies to a full-time work schedule.

The increase also affects the minimum hourly rate. From the beginning of 2026, it is 7.31 BGN based on an eight-hour workday and a five-day work week. Thus, the minimum "euro wage," recalculated at an exchange rate of about 1.95583 BGN per euro, reaches approximately 620 euros per month, which is an important benchmark for workers, investors, and European partners alike.

The mechanism for determining the minimum wage in our country is now linked to the average wage. Under the current rules, the minimum wage is set at 50% of the national average wage for a specific reference period. The goal of this approach is to introduce more predictability and automatism in updating the remuneration of the lowest-income workers and to avoid political fluctuations with every change.

According to official data, the increase in the minimum wage directly affects the incomes of nearly 600,000 workers in Bulgaria. Of these, over 450,000 people receive the minimum basic salary under a labor contract. For these people, the growth means a directly higher monthly income, and for hundreds of thousands more – an indirect increase, as many employers maintain internal pay scales "anchored" to the minimum wage.

Historically, the minimum wage has grown significantly in recent years. In 2020, it was 610 BGN, in 2021 – 650 BGN, in 2022 – 710 BGN, in 2023 – 780 BGN, in 2024 – 933 BGN, and in 2025 it reached 1,077 BGN. Thus, for the period 2020–2026, the minimum wage has practically doubled, which increases the nominal "euro wage" for those with the lowest incomes.

For employers, the increase in the minimum wage means mandatory updating of the salaries of employees whose wages are below or at the new threshold. In many cases, this necessitates the signing of additional agreements to labor contracts and the review of internal wage structures. In parallel, costs for social security and labor are also rising, which is felt most strongly in sectors with a high share of low-paid personnel.

For workers receiving the minimum wage, the change is particularly noticeable against the backdrop of higher prices for food, housing, transport, and services. A higher minimum wage increases net income, improves purchasing power, and can help reduce the risk of "in-work poverty" – a situation where a person is employed, but their income is insufficient for a normal standard of living. A higher minimum "euro wage" also stimulates domestic consumption, which has a positive effect on the economy.

The increase in the minimum wage also influences a number of other payments and indicators linked to the minimum remuneration – minimum social security thresholds, certain types of benefits, social assistance thresholds, administrative fees, and others. Thus, the increase has a multi-layered effect that extends beyond the purely labor-related relationship.

In the context of the European Union, despite the significant growth, Bulgaria remains the country with the lowest minimum wage. With a "euro wage" of approximately 620 euros in our country, in countries like Luxembourg, the minimum wage exceeds 2,700 euros per month. The difference is substantial, but experts note that Bulgaria is among the countries with the highest rate of increase in minimum remuneration in the EU in recent years.

Expectations for the coming years are that the minimum wage will continue to grow, following the "50% of the average wage" principle. With sustainable growth of the economy and incomes, this would mean a gradual increase in the minimum wage and a faster convergence of the Bulgarian "euro wage" toward average European levels. The main challenge remains the balance – for incomes to grow fast enough to raise the standard of living without undermining business competitiveness.

In conclusion, the minimum wage in Bulgaria in 2026 of 1,213 BGN is the highest in the country's history. The 12.6% increase affects hundreds of thousands of workers and has a serious impact on both family budgets and enterprise costs. Although Bulgaria retains the last place in the EU in terms of the amount of minimum remuneration, the sustainable growth of the "euro wage" here is a sign of gradual, albeit difficult, convergence toward a higher standard of living.