A minimum wage of 660 euros from 1 January 2027, as the government proposes, is acceptable to employers because it is close to what they expected, Dobri Mitrev, chair of the board of the Bulgarian Industrial Association (BIA), told BTA. He called for a balanced approach in setting it.

This report follows our earlier story on a ceiling of 678.80 euros for the 2027 minimum wage, which ran before the exact figure was announced.

Mitrev is also rotating chair of the Association of Organisations of Bulgarian Employers. He spoke after employers' groups met finance minister Galab Donev at the Finance Ministry. Mitrev said Donev presented the main parameters of the 2027 budget plan and explained them in detail. Earlier in the day, Donev also met the trade unions. Both meetings are part of the preparation of the 2027 budget.

Mitrev welcomed the fact that the government asked employers early for their views and proposals on how to balance revenue and spending. A draft Council of Ministers decree setting the minimum wage at 660 euros has been posted for public discussion on the public consultation portal.

Employers had expected a figure slightly below 660 euros, Mitrev said. He expects inflation to slow sharply next year, and says the government should therefore keep the proposed figure and not give in to pressure from politicians and unions. The minimum wage should sit midway between the lowest and highest possible level, he said, because inflation hurts not only workers but also firms and their ability to pay.

"We have to be sensible, because the economic and fiscal situation is not rosy," Mitrev said. He cited data from the National Statistical Institute and Eurostat showing a sharp slowdown in industry and exports, and added geopolitical challenges to the list.

The BIA chief said firms are paying very high bills because of current prices for electricity, fuel and natural gas. Wages have risen by double-digit percentages for several years, he said, but prices are rising faster than incomes.

Employers are worried by a proposal to raise the maximum insurable income by another 100 euros from 1 January 2027. This is the highest monthly sum on which social security contributions are paid. Two months ago it went up from 2,130 to 2,300 euros.

Mitrev said the problem is not the sum itself but that firms cannot plan ahead. He called the lack of predictability worrying, but said it is understandable that the finance minister wants more revenue.

Mitrev is not convinced that the draft budget sets revenue lower than is realistic. He said nearby events and prices could hit the labour market, and with it consumer spending, which he considers highly undesirable. He added: "It is better for the finance minister to be more conservative when forecasting revenue than when forecasting spending."

The Finance Ministry said yesterday that it has sent Bulgaria's draft budget plan for 2027 to the European Commission and the Eurogroup. The plan includes measures to raise revenue and cut spending, and Bulgaria aims to exit the EU's excessive deficit procedure by 2029.