Employment 2025

BULGARIA Trends and Developments Contributed by: Diana Milkova and Victoria Penkova, Penkova & Partners Law Firm

The Labour Market in Bulgaria in 2025 The labour market in Bulgaria in 2025 continues to transform under the influence of several key fac - tors – digitalisation, new work models, and changing employee expectations. Remote work has seen a significant decline in the past year, with more and more employers returning their employees to the office or implementing a so-called hybrid work regime, with 1–2 working days of remote work per week. As businesses strive to increase productivity, stream - line operations, and gain competitive advantages, the implementation of artificial intelligence is becoming increasingly important for future success. In the coming years, employment is expected to continue to grow, albeit at a slower pace than in the previous three years. In the coming years, employ - ment growth will mainly occur by attracting some of the inactive individuals back into the workforce or by attracting employees from other countries. In the first quarter of 2025 the number of employed persons aged 15 and over, according to data from the National Statistical Institute (NSI), is 2,910,900. The employment rate for the age group 20–64 is 76.5%. In the first quarter of 2025, the number of unemployed was 116,700, and the unemployment rate during the first quarter of 2025 reached 3.9%. Although employers declare a serious shortage of employees, the remaining unemployed have difficul - ty finding employment – usually due to a mismatch between their skills and market requirements or due to limited opportunities in their region. The strategic objectives of the government in 2025 in the field of the labour market include: • increasing employment and reducing the unem - ployment rate among disadvantaged groups in the labour market; • increasing the supply of labour by activating inactive and disadvantaged groups in the labour market;

• increasing the quality of the workforce according to job requirements based on forecasts for the demand for labour with certain skills, digitalisation and new technologies; and • increasing employment opportunities in economi - cally less developed regions. The strategic objective of the government in the field of free movement of workers and labour migration is to limit the shortage of personnel for the labour market in Bulgaria, by regulating labour migration, as well as by guaranteeing the rights of Bulgarian workers exer - cising their right to free movement and employment in the EU/EEA. As of 1 January 2025 the minimum monthly wage is BGN1,077 which is expected to be increased as of January 2026. The maximum monthly social security income as of 1 April 2025 is BGN4,130. The maximum monthly social security income for 2026 will be adopted in the last quarter of 2025. The most significant changes of the labour legislation in 2025 were related to the digitalisation of the labour book and the adoption of the euro as of 1 January 2026. Recent legislative changes The essential laws regulating the employment rela - tions between the workers and employees and the employer are: • the Labour Code; • the Social Security Code; • Labour Migration and Labour Mobility Act; • the Ordinance on the working time, rests and leaves; • Ordinance on the structure and organisation of the labour salary; and • other statutory acts, which supplement the provisions of the Labour Code. • Health and Safety at Work Act; • Employment Promotion Act;

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