site.btaMajor Trade Union Calls for Minimum 10% Wage Increase in 2025

Some BGN 1.6 billion will be needed in the 2025 budget to support wage growth, according to calculations of the Confederation of Independent Trade Unions in Bulgaria (CITUB) presented at a news conference on Friday.

CITUB's proposal for the 2025 budget calls for a minimum 10% wage increase and a horizontal income policy, with raises based on individual performance.

The trade union expects a budget increase of BGN 600 million for secondary education and BGN 200 million for higher education, with an additional BGN 315.6 million for public administration. Additional funds are also needed in other sectors, including health (BGN 165 million), agriculture (BGN 102.6 million), culture (BGN 43 million), transport (BGN 131.3 million), and energy (BGN 0.6 million). CITUB also calls for an increase of BGN 7.1 million for the Bulgarian National Radio.

For the revenue part of the budget, CITUB suggests introducing a tax-free minimum income for natural persons, set at the minimum wage for the relevant year. The trade union also advocates for raising dividend tax rates to at least 10% and introducing a financial transaction tax, a digital tax, and a "junk food" tax targeting potato chips, vapes, and energy drinks, among others. Another recommendation is an excess profits tax aligned with EU legislation.

Lyuboslav Kostov, CITUB’s chief economist and director of the Institute for Social and Trade Union Research, said that Bulgaria remains the country with the highest income inequality. In his words, the tax system should aim to reduce this inequality. Dimitrov added that the tax system is not just a revenue source but a key tool for achieving fairness. CITUB’s proposal includes increasing tax relief to BGN 1,200 for families with one child and to BGN 1,500 for those with two children, Dimitrov said, adding that this would help support young families and working parents.