Bulgaria Proposes 2027 Budget With Public Sector Pay Raises

Prime Minister Rumen Radev announced Bulgaria's draft 2027 state budget, which proposes a 5% increase in public-sector salaries, a 7.5% raise for teachers, and an 8% increase in pensions. The plan includes raising the monthly minimum wage by 6.4% to €660 starting January 1, 2027, utilizing a new mechanism based on labor productivity and inflation.

The government aims for spending restraint and a smaller deficit without increasing main taxes, though it has allocated more funding for defense, education, healthcare, and families. Labour and Social Policy Minister Natalia Efremova stated a preference for the highest possible minimum wage to encourage labor market participation.

The Confederation of Independent Trade Unions in Bulgaria rejected the minimum wage proposal and staged protests in Sofia. The union is demanding a 10% increase in public-sector wages instead of the proposed 5%.