In 2025, salaries in Bulgaria are expected to continue rising, but at a more moderate pace compared to previous years. According to an analysis by Capital, based on data from companies, HR consultants, and macroeconomists, the projected average wage growth is expected to be between 5% and 6%, with some forecasts indicating increases of up to 8% in specific sectors. For comparison, wage growth in 2022 and 2023 was in the double digits and considerably more aggressive.

This new dynamic reflects a cooling of inflationary pressure, increased macroeconomic uncertainty, and a business focus on cost sustainability, particularly in the context of a volatile global environment.

What Determines the Rate of Growth?

Several factors contribute to the more moderate outlook for wage increases in the current year:

• Slowing inflation – In 2024, consumer prices stabilized, and projections for 2025 suggest inflation around or below 4%, which reduces the need for compensatory wage hikes;
• Diverging sectoral expectations – High-tech and industrial sectors continue to face labour shortages, while others, such as retail and services, are taking a more cautious approach;
• Focus on talent retention rather than aggressive hiring – Companies are emphasizing employee development, flexible work models, and internal mobility instead of expanding headcount.

Implications for Investors and the Ruse Region

Moderate wage growth has a direct impact on the investment climate. On one hand, it offers greater predictability and reduced cost pressure for new and expanding businesses. On the other, it indicates that the country retains its competitiveness compared to other locations in the region, particularly in labour-intensive industries.

Ruse, as an established industrial hub with an active labour market and access to skilled professionals, is strategically positioned for companies seeking an optimal balance between costs and human capital. In addition, the city’s proximity to Romania and the presence of educational infrastructure – including the University of Ruse – provide further advantages.

Source: Capital, March 29, 2025, “Salaries to Grow, but Moderately” 

Full article available here: https://www.capital.bg/biznes/moiata-kariera/2025/03/29/4752651_zaplatite_shte_rastat_no_umereno

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