Bulgaria plans overhaul of minimum wage system

Bulgaria plans to replace the current mechanism for setting the minimum wage with a negotiated model involving the government, employers and trade unions, Minister of Labor and Social Policy Nataliya Efremova said. Under the existing system, the minimum wage is automatically set at 50% of the country’s average salary. According to Efremova, the mechanism is opposed by both business groups and trade unions.

“Wages are a measure of labour. It is not a good idea for the mechanism to be automatic and for the state alone to determine the minimum wage when we operate in a market economy,” Minister Efremova said, as quoted by BTA. She announced that the government would seek a new formula through talks with employers and unions, while guaranteeing that the minimum wage would not fall below its current level of 620.20 euros.

The Labour Ministry is also discussing broader use of collective bargaining, which could allow different sectors of the economy to have different minimum pay thresholds.

Editing by Miglena Ivanova