Public Sector Salaries to Rise by 5% from January

Public sector salaries will be increased by 5% from January, Finance Minister Temenuzhka Petkova announced. A government decision to implement the rise is expected to be issued next week.

The increase was provided for in the Revenue and Expenditure Act, which extends the state budget. However, the law did not specify the exact amount of the rise, as it awaited the annual inflation figure.

Asen Vasilev, who proposed the provision in the Act, explained that the government was given the discretion to determine which inflation measure to use – the one calculated according to the Consumer Price Index (CPI) or the Harmonised Index of Consumer Prices (HICP). According to the National Statistical Institute, CPI inflation stands at 5%, while the HICP measure is 3.5%.

“When the text was adopted, there was no agreement between parliamentary groups on whether to use the harmonised or the local inflation index. To ensure an increase, it was decided to apply the inflation index, leaving the final decision to the government,” said Vasilev (WCC–DB).

Outgoing Finance Minister Temenuzhka Petkova added: “The government will take the necessary steps and apply the option that is most favourable to Bulgarian citizens, indexing salaries by 5% in a single adjustment. This will take effect with February’s payments as quickly as possible.”