Bulgaria’s Minimum Wage: A Growing Gap in the EU Landscape
Bulgaria’s minimum wage remains the lowest in the European Union, lagging behind its neighbors and widening the income disparity across the bloc. According to data from the European Statistical Service Eurostat, the minimum wage in Bulgaria stands at 550.67 euros per month (1077 BGN), nearly 190 euros below the lowest remuneration in the euro area.
while Bulgaria saw a 15.4% increase in its minimum wage over the past year, this growth pales in comparison to other EU nations. For instance,Romania’s minimum wage surged by 22.8%, adding over 150 euros annually. In contrast, Bulgaria’s increase amounted to just 73.63 euros, highlighting a widening gap between the two neighboring countries.
Croatia also outpaced Bulgaria, with its minimum wage rising by 15.5% (130 euros) to reach 970 euros. Similarly, Ireland’s minimum wage increased by over 135 euros, now standing at 2281.50 euros, while the Netherlands and Poland saw increases of 123 euros and 114 euros, respectively.
The Stark Contrast with Western Europe
The disparity becomes even more pronounced when comparing Bulgaria to Western European nations. Germany’s minimum wage, for example, increased by 5.2% (107 euros) to 2161 euros, nearly four times higher than Bulgaria’s. Luxembourg leads the EU with a minimum wage of 2637.79 euros, followed by Ireland and the Netherlands at 2281.50 euros and 2193.36 euros, respectively.
Even among Bulgaria’s closest EU peers, the gap is evident. Hungary’s minimum wage is nearly 707 euros, Latvia’s is 740 euros, and Romania’s stands at 814 euros. Outside the EU, countries like Montenegro (670 euros), Serbia (618 euros), and Turkey (708 euros) also surpass Bulgaria’s figures.
Purchasing Power: A Silver Lining?
Despite the low absolute figures,Bulgaria fares slightly better when considering purchasing power.Eurostat data reveals that Bulgaria outperforms Latvia and Estonia in this regard, as goods and services in these countries are more expensive. Though, even with this advantage, the minimum wages in Luxembourg and Germany remain more than twice as high when adjusted for purchasing power.
A Call for Action
The growing disparity underscores the need for Bulgaria to address its wage policies to bridge the gap with its EU counterparts. While percentage increases are important, the absolute amount of the raise is equally crucial for workers’ livelihoods.
| Country | Minimum Wage (EUR) | Annual Increase (EUR) |
|——————–|————————|—————————|
| Bulgaria | 550.67 | 73.63 |
| Romania | 814 | 150 |
| Croatia | 970 | 130 |
| Germany | 2161 | 107 |
| Luxembourg | 2637.79 | 66.86 |
As Bulgaria continues to navigate its economic landscape, the focus must shift toward enduring wage growth to ensure its workforce remains competitive within the EU. For now, the country’s minimum wage remains a stark reminder of the challenges ahead.
