After hours of arguments in the Ministry of Finance, the social partners did not reach an agreement on the specific amount of the minimum wage for next year. However, they have agreed on the mechanism by which it will be calculated.
From 2027, the minimum wage will be determined in a range between a lower and upper limit. The lower limit will be the threshold of the minimum wage from the previous year, which is currently around 620 euros. The upper limit will be calculated based on four indicators - the prices of the small consumer basket, the median and average wages, as well as labor productivity. With the current parameters, the maximum value would reach around 672 euros.
The topic was commented on in the studio of "Your Day" by Rumen Radev, the Chairman of the Management Board of BICA.
According to him, the current automatic mechanism for determining the minimum wage has serious shortcomings. "The efforts that have been made in the last two years have been in several directions. One is in relation to the mechanism for determining the minimum wage. The second is to verify whether this wage is adequate. The third point is to achieve consensus on numbers," he said.
Rumen Radev also stressed the importance of the adequacy of wages, but placed emphasis on economic growth and productivity. "Adequacy must show direction and show what policies will be required to achieve set goals for high income. I continue to argue that we must have adequate economic life in the country, which generates the income that we internally distribute," said the chairman of the BICA.
He warned that a problem for business arises when restrictions are introduced that do not take into account real economic conditions, setting limits that are not market-adequate.
See more on the topic here.
