The cost of labor in Bulgaria depends on the sector in which you operate and the qualification of the workers. In general, however, labor costs in Bulgaria are lower than in most European Union countries.
According to data from 2021, the average gross monthly salary in Bulgaria is around 1,100 euros. However, the average salary varies greatly depending on the industry in which you work. For example, the average gross monthly salary for a worker in the IT sector is around 1,700 euros, while for a worker in the agriculture sector it is around 470 euros.
Furthermore, labor costs can also be influenced by other factors, such as taxes and social contributions, which vary depending on the location and type of business.
And in comparison to Italy? As you might expect, labor costs in Bulgaria are lower than in Italy. According to Eurostat data relating to the second quarter of 2021, the average hourly cost of labor in Bulgaria is 6.4 euros, while in Italy it is 28.5 euros.
Furthermore, while, as mentioned before, the average gross monthly salary in Bulgaria is around 1,100 euros, in Italy it is around 2,000 euros. There is therefore no doubt that labor costs in Bulgaria are more competitive than in Italy, which can be an advantage for companies looking to reduce production costs.
Opening a company in Bulgaria to save on labor is So always a good idea? Not always. Our experience in the area has led us to understand that the advantage is inversely proportional to the quality of the work to be carried out: in other words, the less qualified the workforce sought, the greater the advantage of moving production from Italy to Bulgaria.
This is why, with the exception of freelancers and micro companies that do not have many employees, the bulk of the Italian companies that have decided to invest in Bulgaria are those linked to the industrial production of goods for metallurgy, construction and energy.
However, this is only the situation today. What we see in fact, from a future perspective, is that the quality level of the specialized workforce (diplomas and graduates) is also growing in step with the growth of the quality standards of Bulgarian schools and universities which are increasingly conforming to European ones.
