Introduction of New Minimum Wage in Bulgaria from 2027

The minimum wage in Bulgaria is set to be updated following the adoption of Decree No. 235 on October 29, 2026, by the Council of Ministers. This decree, effective from January 1, 2027, establishes a new minimum monthly wage of 660 euros and a minimum hourly wage of 3.98 euros. This change is intended to align with standard working hours of an 8-hour day and a 5-day workweek.

What changes

The change involves an increase in the minimum wage, which was previously 620.20 euros per month, to 660 euros, effective from January 1, 2027. The minimum hourly rate is also set at 3.98 euros. This amendment is reflected in several regulatory acts, including Decree No. 66 of 1996 and the Regulation on the Salaries of State Administration Employees. The primary goal of the change is to improve labor conditions and raise the living standards of those earning minimum wage.

Who is affected

This change will impact all employers who adhere to minimum wage standards, as well as employees currently receiving the minimum wage. It particularly applies to economic sectors where the minimum wage is a key reference point for compensation. Additionally, government employees and those working in organizations funded by the state budget will also experience the effects of this change within the set financial budget.

Dates and deadlines

Decree No. 235 was adopted on October 29, 2026, and published on November 3, 2026, in the State Gazette. The new provisions are officially effective from January 1, 2027, when employers must align wages with the new minimum.

Practical next steps

Employers are advised to update their internal policies and pay systems to comply with the new minimum wage requirements by January 1, 2027. They should also review budget plans and account for the necessary expenses due to increased rates. It is also advisable to consult legal advisors regarding potential legal obligations related to this change.

What to check for your situation

The decree is limited to setting the minimum wage and does not introduce additional requirements for changes in working conditions or other areas of labor law.