Minimum wage becomes 1213 BGN from January 1, 2026

Income Increase and Social Impact

The Government of Bulgaria is taking a decisive step towards increasing the income of the most vulnerable groups in the labor market by significantly raising the minimum wage. According to the draft Decree of the Council of Ministers, prepared by the Ministry of Labor and Social Policy (MLSP) and published for public discussion, the minimum monthly remuneration will reach 1213 BGN (620.20 EUR) as of January 1, 2026. This represents a significant increase of 12.6%, or 136 BGN, compared to its current value, which has the potential to change the financial situation of hundreds of thousands of Bulgarians. In parallel, the minimum hourly wage will be increased to 7.31 BGN (3.74 EUR) from the same date.

The impact of this decision is expected to be widespread, improving the lives of nearly 600,000 people who will benefit directly from the higher income. According to data from the National Statistical Institute, as of the second quarter of 2025, approximately 456,700 people were employed on a full-time employment contract with a minimum basic wage. The new increase will also affect other key groups in society. The remuneration of about 83,000 personal assistants, who care for children and adults with disabilities every day, will be increased by 12.6%. In addition, nearly 30,000 people employed in social services funded by the state budget will also receive an increase. The increase will also cover all those working under employment programs and measures, as well as professional foster families, whose role in society is invaluable.

Legal Framework and Lack of Consensus

Despite the ambitious increase, the decision comes against the backdrop of an ongoing dialogue and a lack of consensus with social partners. At the initiative of Minister Borislav Gutsanov, the MLSP resumed consultations with nationally representative organizations of employers and trade unions. The goal was to develop a new mechanism for determining the minimum wage. Numerous meetings were held throughout the year in an attempt to find the "most correct and balanced solution" for improving the process. Although "a certain convergence of positions" was noted, a final agreement was not reached.

As a result, the new minimum wage amount was determined in accordance with the provisions of the Labor Code. According to the current legal text, the minimum wage is equal to 50% of the average gross wage for the last two quarters of the previous year and the first two quarters of the current year. This definition is also in full compliance with the requirements of the European Union Directive on adequate minimum wages, which proposes 50% of the gross average wage as one of the possible reference values for assessing adequacy.

Expected Impact on the Economy

The higher minimum wage is expected to have a positive impact on the economy, reducing poverty among the working population and increasing the purchasing power of the lowest-income groups. This, in turn, will stimulate consumption and support the growth of the Bulgarian economy. The proposed amount of 1213 BGN reflects the forecasts for the growth of the gross domestic product and the development of the labor market in the country, which makes it not only a socially but also an economically justified decision.