The labour cost has increased by 13.2% in the first quarter of 2026 compared to the same period a year earlier. Among EU countries, only Hungary recorded a higher increase
Bulgaria ranks first in the eurozone and second in the European Union in terms of growth in hourly labour costs in the first quarter of 2026. According to Eurostat data, hourly wage costs in the country rose by 13.2% year-on-year. Wage costs in Bulgaria have been increasing at double-digit rates since the beginning of 2021, placing the country among the EU members with the strongest growth in recent years. This trend comes amid a tight labour market, characterised by low unemployment and labour shortages across a number of sectors, as well as rising prices and operating costs. By comparison, hourly wage costs increased by an average of 3.4% in the euro area and 3.7% across the EU.
Across the EU, only Hungary recorded a higher increase in the first quarter, at 16.4%. Hungary and Bulgaria were the only two Member States to report double-digit growth. In Hungary, the increase was driven mainly by a 38.7% rise in wages in the public sector, while wages in the business sector grew by 8%. In Bulgaria, public services also led the increase, though with a smaller gap: wages in predominantly state-run activities rose by 15%, compared with 12.8% in the private sector.
Despite the substantial increases recorded in recent years, Bulgaria still has the lowest nominal hourly wages in the EU. According to Eurostat data for 2025, average hourly earnings amounted to approximately €10.5 per hour across the economy (excluding Public administration and Defence).
