Fiscal Council urges caretaker cabinet to overhaul public sector pay policy

The current pay policy for public sector employees needs to be reconsidered. The state of individual sectors and systems requires significant reforms, including changes to the operating model. This is highlighted in a report by the Fiscal Council titled “Recommendations for the Fiscal Policy of the Caretaker Government.”

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The Fiscal Council notes that the burden of personnel costs is too high, reaching 11% of the country’s GDP. Wage growth outpacing inflation stimulates consumption and generates further inflation, as the increase in public sector salaries forces the private sector to raise wages as well, the analysis states.

According to preliminary data from the National Statistical Institute, monthly inflation in January 2026 was 0.6%, while annual inflation compared to January 2025 was 3.5%.

Edited by Ivo Ivanov

Translated by Kostadin Atanasov