On January 1st, 2024, Bulgaria took a significant step towards reducing income inequality and improving worker livelihoods. The government officially raised the minimum wage from BGN 780 to BGN 933, marking a near 20% increase. This bold move reflects a concerted effort to address the nation’s high-income disparity, which stands out within the European Union.
Prime Minister Nikolay Denkov emphasized the importance of this change, stating that it fulfills a key commitment to “reduce inequality in Bulgaria, which is too high for European standards.” He further acknowledged that Bulgaria currently boasts the lowest minimum wage in the EU and expressed a desire to move away from relying solely on low wages to attract investors.
The increase is expected to improve the living standards of over 500,000 workers who previously earned between BGN 780 and BGN 933. This positive impact goes beyond individual lives, as it also aims to stimulate the economy by boosting domestic consumption. Additionally, the increase significantly surpasses the current inflation rate of 7.7%, providing real purchasing power gains for minimum wage earners.
The decision aligns with the Labor Code, which stipulates that the minimum wage be set at 50% of the average gross wage for a specific period. This ensures a gradual but consistent increase in line with overall economic trends.
By raising the minimum wage, Bulgaria sends a clear message: the nation is committed to building a more equitable society, fostering a skilled workforce, and attracting investors based on the quality of its production and added value, not just low wages. This shift marks a promising step towards a more prosperous and stable future for Bulgaria and its citizens.
