A new mechanism for determining the amount of the minimum wage in Bulgaria must be adopted by the end of August, and the minimum wage for 2027 must be determined by the end of September. This was stated by Finance Minister Galab Donev, presenting the results of the work of the interdepartmental working group established by his order.
The working group held its first meeting on Tuesday, with the participants reaching consensus on practically all the amendments and additions that need to be made. „The working group unanimously agreed that we must have a minimum wage for the country, which must be legally established“, said Donev.
According to him, the criteria on the basis of which the amount of the minimum wage will be determined in the future have also been unanimously approved.
It is planned to carry out an assessment once every four years whether the minimum wage is adequate. The working group has also reached agreement on the reference value that will be used in this assessment. „The working group decided that this should be 50 percent of the average amount of the basic wage“, explained the Minister of Finance.
The work on the mechanism continues. After the texts relating to the changes in the Labor Code have already been adopted, the next step is the preparation of proposals for amendments and supplements to the Regulation on the Structure and Organization of the Wage. “We need to finalize the work so that by the end of August we have an adopted and working mechanism for determining the minimum wage“, said Donev.
According to him, the next key deadline is the end of September, when the specific amount of the minimum wage for 2027 must already be determined.
Efremova: We have not discussed a specific amount of the minimum wage, we are yet to develop the formula
The government, unions and employers have reached a general agreement on the basic principles on which the new mechanism for determining the minimum wage will be built. However, neither the specific amount of the remuneration nor the weight of the individual indicators in the formula have yet been discussed, added the Minister of Labor and Social Policy Natalia Efremova.
She emphasized that the issue is part of the larger topic of the income of Bulgarian citizens and is therefore among the priorities of the government. According to her, the goal is for the state and social partners to have a clear and common understanding of the direction in which things should go. This implies changes in both the legislation and the by-laws, and more specifically in the Regulation on the Structure and Organization of the Salary.
Additional talks between the government, employers and unions will begin at the end of this week. One of the main tasks is to determine the procedure for calculating the minimum wage, and according to Efremova, the participation of social partners must be guaranteed.
It is yet to be specified which official statistical data will be used in the calculations. Despite the agreement reached on the main criteria, the specific formula has not yet been developed.
„We have so far only agreed on the criteria on which we will base ourselves, but exactly how the formula will be built is yet to be specified together with the unions and employers and written down in the relevant regulation“, explained the Minister of Social Affairs.
A special procedure will also be developed through which to periodically assess the extent to which the minimum wage remains adequate. Efremova indicated that talks on all these issues should progress in the coming days. The goal set by the Prime Minister is to reach a general agreement by the end of August, so that the specific work on the budget procedure can then begin.
The Minister of Social Affairs linked the increase in incomes to labor productivity. In her words, in parallel with the minimum wage mechanism, work should be done to improve the qualifications of Bulgarian citizens, which would lead to higher productivity and the creation of more added value.
“We must work together to improve the qualifications of Bulgarian citizens, and hence - the productivity and the added value that each of us can provide in order to have a prosperous economy“, said Efremova.
Four main criteria for the minimum wage
The Minister explained that the criteria on which an agreement has been reached follow the provisions of the European directive on adequate minimum wages.
When determining the remuneration, the cost of living, the general level of wages and their distribution, the rate of growth of wages, as well as the long-term levels and development of national productivity will be taken into account.
The next task is to establish how each of these criteria can be measured through national statistical data. On this basis, a formula should be created that, according to the minister, takes into account both the productivity and the social function of the minimum wage.
When asked whether the meeting considered an option for the minimum wage to reach 650 euros from January 1, Efremova specified that specific amounts were not the subject of the talks.
Donev: The Civil Servant Law is among the first priorities of the parliament after the vacation
The Civil Servant Law, the changes to the Labor Code and the Fiscal Council Law are among the normative acts on which the National Assembly must begin work after the end of the parliamentary vacation, Galab Donev also said after the adoption of the government's management program.
According to him, the legislative program is already underway, with the changes to the Civil Servant Law being particularly urgent. “On the agenda is the Civil Servant Act, which must be adopted in an extremely short time, as well as the relevant regulation, which must subsequently be adopted“, said Donev.
He explained that the changes are related to the implementation of the requirements under the National Recovery and Resilience Plan and the expected final payment under it.
Among the legislative priorities are also the changes to the Labor Code. A number of other bills are already in the parliament, the consideration of which should begin on the first day after the deputies' vacation. „The Fiscal Council Law is also on the agenda, as well as a number of laws that will initiate reforms in both the administration and fiscal rules“, Donev pointed out.
Some of the upcoming legislative changes are also related to the introduction of requirements from European directives.
According to Donev, the parliament will have enough work from the beginning of the new plenary session, with the goal being to adopt the entire package of necessary bills by the end of the year. „The work of the National Assembly is secured. Hopefully, with the busy pace they have been working at so far, they will be able to adopt this entire set of bills that must be adopted by the end of the year“, he added.