Minimum Wage (MW)

The lowest legally permissible monthly remuneration that an employer is obliged to pay for a full working day (8 hours) under normal working conditions in Bulgaria. It is regulated by the Labour Code and the State Budget Act of the Republic of Bulgaria for the respective year. The minimum wage is set by a Council of Ministers decree based on economic indicators (GDP, labour productivity), social criteria (living costs, poverty, average wage), and consultations with trade unions and employers’ organizations. The MW is state-regulated and applies to all employees under an employment contract, including in the private sector. It is expressed as a monthly amount for a full working month, with a corresponding rate for hourly work. The MW serves as a basis for calculating social security contributions, benefits, tax reliefs, and the amounts of certain administrative fines and fees.