site.btaBulgarian Industrial Capital Association Opposes Minimum Wage Hike in 2026

The Bulgarian Industrial Capital Association (BICA) on Tuesday urged the government to withdraw its proposal for an increase in the minimum monthly wage to BGN 1,213 (EUR 620) from January 1, 2026, up from BGN 1,077 now. BICA warned the increase would create labour market imbalances, harm competitiveness and undermine a stable transition to the eurozone. The organization insisted that the government maintain the current level of the minimum wage instead.

BICA issued its position on a Council of Ministers' draft decree published for a one-month pubic discussion on August 26.

In a statement sent to BTA, the employers' organization also called for the repeal of Article 244 of the Labour Code, which stipulates that the Council of Ministers sets minimum pay and compensations. BICA urged the adoption of a new mechanism which should involve genuine participation of social partners, uphold collective bargaining, and take into account objective economic indicators reflecting real economic development, labour market conditions and purchasing power, in line with EU legislation.

BICA argued the 12.6% increase, presented as a measure to support the incomes of nearly 600,000 people, ignores serious economic risks and imbalances already manifest in Bulgaria's labour market. BICA suggested that the minimum wage should not be raised in 2026, arguing that it had already grown ahead of objective economic indicators over the past three years.