As they met separately with Finance Minister Galab Donev in Sofia Friday, trade union and employer organizations disagreed on the minimum wage and public-sector wage increase in the government’s 2027 budget plan.
Representatives of the Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Podkrepa Confederation of Labour met the Finance Minister in the morning, followed by a separate meeting with employer organizations in the early afternoon. The meetings took place a day after the government submitted Bulgaria’s 2027 budget plan to the European Commission and the Eurogroup.
What the unions say
Trade unions opposed the planned 5% increase in public-sector salaries in 2027, insisting that wages should rise by at least 10% to compensate for inflation and the higher cost of living. Confederation of Labour Podkrepa President Dimiter Manolov described the proposed increase as “ridiculous” and called for the minimum wage to be set at the upper end of the new formula, at EUR 672.
CITUB President Plamen Dimitrov also rejected the proposed minimum wage of EUR 660, saying that people expected it to reach EUR 690, and argued that the budget could accommodate a 10% pay rise without affecting the deficit.
He estimated that meeting the union’s income demands would require an additional EUR 300–380 million, which he said could be covered by higher-than-projected revenue. The unions also opposed taxing meal vouchers and called for additional funding for a range of public-sector areas, including education, healthcare, transport, culture and agriculture, as well as rejecting blanket percentage targets for public-sector staff cuts.
What employers say
Employer organizations advocated a balanced approach to setting the minimum wage, arguing that wage policy should take account of both employees’ needs and businesses’ capacity to absorb higher costs.
Bulgarian Industrial Association President Dobri Mitrev, who chairs the Association of Bulgarian Employers’ Organizations on a rotating basis, said the proposed minimum wage of EUR 660 was close to employers’ expectations and should be accepted, given the forecast slowdown in inflation.
He pointed to a significant slowdown in industrial activity and exports, geopolitical uncertainty and high energy and fuel prices as factors putting pressure on businesses. Mitrev also called for realistic budget planning, saying the Finance Minister should be more conservative in forecasting revenue than expenditure.
The government’s plans
Progressive Bulgaria Floor Leader Petar Vitanov said the planned increases — more than 6.5% for the minimum wage, over 5% for public-sector salaries and more than 7.5% for teachers — represented an improvement on the previous budget proposal. He said protests demanding higher wages were justified, given rising living costs and the impact of the wars near Bulgaria, but stressed that wage increases had to be balanced with fiscal stability. Vitanov also noted that the minimum-wage parameters had been discussed with both trade unions and employers, saying he did not understand what had prompted the subsequent protests.
Labour and Social Policy Minister Nataliya Efremova said the government aimed to set the minimum wage as close as possible to the upper limit of EUR 672.80, while taking account of social conditions and the country’s economic and budgetary capacity. She said the final decision would be taken at the end of October. Efremova also outlined planned increases in pensions, child and maternity benefits, and tax relief for families, adding that the government was prioritising people on lower incomes despite pressure from EU institutions to reduce social spending because of Bulgaria’s excessive budget deficit.
Deputy Prime Minister Atanas Pekanov told bTV on Friday that the minimum wage should rise gradually, as excessive reliance on automatic increases could undermine Bulgaria’s economic competitiveness. He said higher labour costs were not necessarily harmful because they also compensated for years in which wages had failed to keep pace with inflation. Pekanov said minimum wage levels ranging from EUR 660 to EUR 670 were under discussion. He called for a balance between social policy and what the State could afford, given budget constraints and the need to reduce the deficit.
Unions Seek Higher Pay and Employers Urge Caution as Cabinet Prepares 2027 Budget 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-10-16 17:14:00
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