Since joining the European Union in 2007, Bulgaria has become a magnet for foreign investors and multinational companies. Why? Mainly thanks to its cheaper but highly skilled labor, and a very active consumer base; it is therefore not surprising that companies from all over the world are interested in expanding in this country.
Bulgaria has a government-mandated minimum wage. In 2021, the national minimum wage in Bulgaria remained fixed at 332.3 euros per month, or 3,988 euros per year, taking into account 12 payments per year.
Minimum rates apply to everyone, regardless of age, industry and experience. Furthermore, depending on the sector and position occupied, the law establishes minimum social security thresholds. Therefore, even if the agreed salary is the minimum salary, the social security installments are calculated on the basis of the applicable minimum threshold.
So what is the comparison between the cost of labor in Bulgaria and that in the rest of Europe? According to new data from Eurostat as of 1 January 2022, 21 of the 27 EU member states have introduced national minimum wages, with the exception of Denmark, Italy, Cyprus, Austria, Finland and Sweden. Based on their euro levels, these 21 member states can be divided into the following main groups: there is a first group of 13 member states, located in the east and south of the EU, with minimum-average wages below 1 €000 per month: Bulgaria (€332), Latvia (€500), Romania (€515), Hungary (€542), Croatia (€624), Slovakia (€646), Czechia (€652), Estonia (€654 €), Poland (€655), Lithuania (€730), Greece (€774), Malta (€792) and Portugal (€823).
And a second group with Slovenia (1,074 euros) and Spain (1,126 euros) with the minimum-average wage of just over 1,000 euros per month. Finally there is the group with the highest labor costs, the one made up of six Member States in which the minimum wage is above 1 500 euros per month: France (1 603 euros), Germany (1 621 euros), Belgium ( 1 658 euro), the Netherlands (1 725 euro), Ireland (1 775 euro) and Luxembourg (2 257 euro).
Now, without bothering Luxembourg, the comparison between the 1500 euro minimum wage in France or the 1600 in Germany compared to the 332 euro in Bulgaria are convincing more and more entrepreneurs to delocalize their production to Bulgaria. A decision that is not necessarily linked to the objective of greater profit but, very often, to the actual survival of the company
