site.btaCompanies Make Conservative Forecasts for Wage Growth in 2025

The total wage increase in Bulgaria in 2024 is expected to be 7% year on year. Companies are conservative in their forecasts for 2025 and would rather maintain this year's wage growth rate. Overall, 7% growth is lower than businesses had planned for this year, Mercer Marsh Benefits found in its Total Remuneration Survey for Bulgaria.

There are three main drivers for employee pay rises: personal performance, company performance and place in range. Wage increases by position were 6% for senior management, 8.3% for management, 8.6% for professionals and 10.5% for operational level positions.

Stela Yulzari, Senior Consultant at Mercer Marsh Benefits for Bulgaria, commented that between 2017 and 2021, wage increases covered inflation. There was a larger gap in 2022, and then 2023 saw a catch-up with inflation, while 2024 has seen 7% wage growth as against 4% inflation. Understandably, most companies are rather conservative about 2025.

The increase in monthly gross earnings remains strongest relative to the overall market in the IT and pharmaceutical sectors, while manufacturing and outsourced services remain below the overall market trend.

Sofia remains the region with higher salaries than the national average, with 7.6% higher pay for managerial positions, 9.3% for specialists and nearly 11% for operational level employees. The trend continues for the most rapidly growing sectors to be located mainly in the capital, while the manufacturing, commercial and financial sectors are concentrated in the rest of the country.

As to the average benefits, the survey found that companies invest most in employee referral progarmmes (BGN 1,000), transport (BGN 666), Christmas bonuses (BGN 300), food vouchers (BGN 200) and health insurance (BGN 42). 

The Total Remuneration Survey involved 539 companies and 131,868 employees in 14 industries.