Bulgaria Fixes Minimum Monthly Wage at 660 Euros Starting January 2027
Workers in Bulgaria earning the lowest wage will receive 660 euros per month starting January 1, 2027, under a decree adopted by the Council of Ministers. The updated rate represents an increase of 39.80 euros from the previous minimum of 620.20 euros, which took effect at the beginning of 2026. Prime Minister Rumen Radev signed Decree No. 235 on October 29, 2026, establishing the monthly floor alongside a minimum hourly rate of 3.98 euros based on a standard eight-hour workday and a five-day workweek.
State administration salaries, subsidized employment programs, and specific national support initiatives will immediately adopt the 660-euro baseline. The decree amends the Ordinance on Salaries of Employees in the State Administration, replacing figures of 620.20, 640, and 652 euros across its schedules. Budgetary organizations must absorb these costs within their existing approved expenditure limits. Meanwhile, state-subsidized remuneration for workers hired under promotion measures and employment programs through the Employment Promotion Act will match the 660-euro floor until the adoption of the National Action Plan on Employment for 2027. Workers with higher education employed under national programs such as “Assistance for Retirement,” “Melpomene,” and the National Program for Training and Employment of People with Disabilities will receive the same baseline amount.
The cabinet decision sparked immediate political backlash and sharp divisions among social partners during discussions for the 2027 state budget. Trade unions had pushed for a minimum wage of 690 euros. Kremena Atanasova, chair of the Podkrepa Trade Union of Administrative Employees, warned that the finalized sum will cause poverty for hundreds of thousands of workers. She noted that Bulgaria lacks a tax-free income threshold, meaning the 660-euro gross salary translates to exactly 512 euros net for a full-time schedule. Conversely, employers supported the government figure, with Bulgarian Industrial Association Vice President Maria Mincheva stating that the amount aligns with business calculations to maintain payment stability and prevent the minimum wage from scaling too close to average wages across regional economic sectors.
Political opposition figures condemned the administrative process used to approve the wage floor. Венко Сабрутев (Venko Sabrutev), chair of Parliament’s social committee from the “Promyanata” alliance, asserted in parliamentary corridors that the cabinet adopted the decree quietly without a formal ministerial meeting by using a signature mechanism to avoid public scrutiny three days before a runoff election. Sabrutev characterized the final amount as progressive poverty compared to the 690-euro figure previously anticipated under older mechanisms. In contrast, Labor and Social Policy Minister Natalia Efremova defended the overall fiscal package, noting that maximum and minimum insurance thresholds will rise to increase state social security revenues alongside targeted anti-grey-economy measures.
Social Security Adjustments and Pension Increases for 2027
Alongside the minimum wage adjustment, the Ministry of Labour and Social Policy announced comprehensive changes to social insurance thresholds, maternity benefits, and pension updates. Labor Minister Natalia Efremova stated that the maximum insurance income will increase by 100 euros to generate additional revenue for the State Social Security budget. Pensions will undergo regular indexation starting July 1 based on the Swiss rule. Efremova acknowledged that the incremental adjustments to insurance thresholds represent the maximum burden businesses and citizens can currently absorb while fighting the shadow economy through heightened administrative control.
Family support policies will also shift under the new government package. Maternity benefits during the second year of child-rearing will increase from 398 to 450 euros. Mothers who return to work before their child turns two will receive 75% of the designated compensation instead of the previous 50% payout. To address systemic expenditures, the administration is preparing legislative amendments to reform the issuance of disability assessments through the Territorial Expert Medical Commissions (TELK) and revise the Personal Assistance Act to combat fraudulent claims while preserving aid for citizens requiring genuine support.
Frequently Asked Questions About the 2027 Wage Decree
How does the new minimum hourly wage compare to the monthly rate?
The minimum hourly rate is set at 3.98 euros, calculated on a normal working schedule of eight hours per day and a five-day working week, as specified in Decree No. 235 signed on October 29, 2026.
Which specific national programs apply the 660-euro floor for workers with higher education?
The subsidized remuneration applies directly to personnel hired under the “Assistance for Retirement,” “Melpomene,” and the National Program for Training and Employment of People with Disabilities.
What were the competing figures proposed by labor unions before the decree was finalized?
Trade unions actively demanded a minimum wage of 690 euros during budget discussions, arguing that the government-approved 660-euro limit leaves workers vulnerable.
How will the state fund the increased administrative and state-subsidized salaries?
Budgetary organizations must cover the necessary financial execution within the framework of their already approved expenditure limits, while social security deficits are offset by higher insurance thresholds and tighter compliance controls.
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