Despite Trade Unions’ Opposition, Minimum Wage Remains at €660

The minimum wage will remain at €660 despite the unions' objections. Social partners discussed a total of eight amendments to tax laws, including new VAT registration thresholds and higher tax relief for families with children. Electric vehicles will not be subject to an additional excise duty based on engine power.

The Ministry of Finance has abandoned its initial proposal for a new VAT registration threshold.

Instead of the originally proposed €75,000 threshold from January, a gradual increase over the next three years is now being proposed.

Other new proposals include increased tax relief for families with children, from €5,000 to €15,000.

Electric vehicles will be exempt from the proposed excise duty on cars with power output above 250 kilowatts, under another amendment to the tax laws. For hybrid vehicles, only the power output of the internal combustion engine will be taken into account.

The finance minister explained the rationale behind the proposed changes by referring to the inherited hidden budget deficit.

Galab Donev – Minister of Finance: That is why realistic budget planning and financial discipline are necessary today, so that we can restore the sustainability of public finances. The decisions we are proposing today must strike a reasonable and achievable balance between financial sustainability and social responsibility.

Once again, trade unions and employers failed to reach an agreement on the level of the minimum wage.

Stanislav Popdonchev – Bulgarian Industrial Capital Association: All nationally representative employers’ organisations supported the draft decree setting the minimum wage for 2027 at €660. The increase is 6.4% compared with the current level and fully covers the rise in inflation.

Ioannis Parteniotis – Confederation of Labour 'Podkrepa': With the proposed minimum wage of €660, Bulgarian workers who earn the minimum wage will once again rank last among all European Union member states.

The new minimum wage and the amendments to the tax laws are expected to be submitted to Parliament for debate by the end of October.