The Association of Bulgarian Employers' Organizations (AOBE) calls on members of parliament from all parliamentary groups to support §44 of the Draft Law on the State Budget of the Republic of Bulgaria for 2026 (No. 52-602-01-19/01.07.2026), submitted by the Council of Ministers, which provides for a temporary suspension of the application of Art. 244, para. 2 of the Labor Code until the adoption of a new, comprehensive and sustainable mechanism for determining the minimum wage for the country. Until the introduction of this mechanism, the minimum wage should remain at the level set for 2026.
This measure is necessary to prevent the automatic application of the current formula, which does not sufficiently take into account the economic situation, differences in labor productivity, the state of individual economic sectors and regional specificities, and creates serious risks for the competitiveness of the Bulgarian economy, keeping inflation below 2%, the sustainability of enterprises, employment and the investment environment.
The AOBE consistently maintains the position that the mechanism for determining the minimum wage should be built in accordance with the principles of Directive (EU) 2022/2041 on adequate minimum wages in the European Union. This means that it should be based on objective economic indicators, transparent criteria and effective social dialogue between the state and social partners, and not on an automatic administrative approach.
The norm of Art. 244, para. 2 was adopted in 2023, threatening the stability of the Bulgarian economy and despite the clear texts of the Directive and ILO Convention 131, despite the positions presented and the discussions in which the employers' organizations actively participated.
Bulgarian employers have repeatedly expressed the opinion that the current mechanism does not meet the requirements of the European Directive and does not guarantee predictability, economic justification and a balance between income protection and business opportunities. Instead of creating stability, it creates uncertainty and the risk of administrative wage determination without the necessary assessment of the impact on the economy and the labor market.
Support for §44 does not represent a rejection of the income-raising policy, but a necessary temporary measure that will provide time for the development of a fair, transparent and economically justified mechanism for determining the minimum wage. Only in this way can the interests of workers, employers and society be combined, while at the same time ensuring sustainable economic growth, competitiveness and a predictable business environment.
We, as officially recognized representative organizations of employers in the Republic of Bulgaria and united in the Association of Bulgarian Employers' Organizations, call on the representatives of the people to show statesmanship and support the proposal by creating the necessary conditions for the adoption of a new mechanism, built through real social dialogue and in accordance with European principles and good practices.
We remain available to finalize the process of transposing Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022 on adequate minimum wages in the European Union.
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