Bulgaria increases minimum wage by 15.4% for 2025
Bulgaria's caretaker government has finalized the decision to raise the minimum wage to 1,077 levs starting next year, marking a 15.4% increase from the current 933 levs. This follows a 20% raise at the beginning of 2024.
The increase was expected, as the wage is now determined by a formula set in the Labor Code, which calculates it as 50% of the average gross salary over the past four quarters. Despite opposition from employer organizations, who argue the raise is too steep given lagging labor productivity, the government has confirmed the new wage. After the increase, full-time workers on minimum wage will take home approximately 835.73 levs per month.
Around 432,000 people, or 19% of the workforce, currently earn the minimum wage.
Mortgage lending in Bulgaria reaches new highs ahead of regulatory measures
The latest data ahead of the Bulgarian National Bank's (BNB) new measures to curb the mortgage lending boom show a continued acceleration in housing loans.
As of September, the annual growth rate for mortgages hit 25.9%, with the total loan volume surpassing 23.6 billion levs, setting a new record in nominal terms. While September's increase of 414.5 million levs is in line with monthly averages for 2024, the total growth for the year so far, over 3.7 billion levs, has already exceeded that of 2023.
Additionally, non-performing and restructured loans in this segment remain low, at under 1%. In other lending segments, consumer loans saw a 15% annual growth, while corporate loans showed signs of deceleration, with a growth rate of 8.2% in September compared to 9.5% in August.
New €98 Million Program to Support Non-Agricultural Activities in Bulgaria's Rural Areas
At the end of 2024, a new 98 million euro program will launch to support non-agricultural activities in Bulgaria's rural areas, funded through the Strategic Plan. Eligible investment costs will be capped at 400,000 euro, with up to 50% of these costs covered by grants. The program targets rural municipalities with populations under 30,000 and aims to boost economic opportunities and competitiveness in sectors such as industry, tourism (excluding accommodations), healthcare, social services, and information technology.
The initiative focuses on farmers, micro-enterprises, and artisans, with an emphasis on strengthening farm resilience by diversifying into non-agricultural activities. Eligible applicants must meet specific registration requirements and have a base in a rural area. Micro-enterprises and craftspeople will play a key role in fostering dynamic markets and promoting sustainable development in rural communities.
Bulgaria increases minimum wage by 15.4% for 2025
Bulgaria's caretaker government has finalized the decision to raise the minimum wage to 1,077 levs starting next year, marking a 15.4% increase from the current 933 levs. This follows a 20% raise at the beginning of 2024.
