site.btaBulgaria Ranks First in EU in Labour Costs in Second Quarter as Growth Rate in Euro Area Slows

Bulgaria recorded the strongest yearly increase (+9.9%) in hourly labour costs for wages and salaries in the European Union in the second quarter of 2026, according to the latest data released by Eurostat on Wednesday. In the second quarter of 2026 the hourly labour costs rose by 3.1% in the euro area and by 3.2% in the EU, compared with the same quarter of the previous year. The two main components of labour costs are wages, salaries and non-wage costs. 

Alongside Bulgaria, the highest increases in hourly wages and salaries for the whole economy were recorded in Lithuania (+9.6%) and Croatia (+8.9%). The lowest increases were recorded in Luxembourg and Romania (+1.8% each) followed by France and Italy (+2.1% each).

In the first quarter of 2026 Bulgaria ranked second in the EU in terms of this indicator, with an increase of 13.2%. Hungary ranked first at the time, with a 16.4% increase. 

The pace of growth in hourly labour costs for wages and salaries is also slowing across the EU, from 4.4% in the second quarter of 2025 to 3.7% in the first quarter and 3.2% in the second quarter of 2026. In the euro area, the growth rate declined from 4.1% to 3.4% and 3%, respectively. 

Eurostat also reports about the total hourly labour costs, which is an indicator that includes the wage and salary costs described above, as well as employers’ social security contributions and employment taxes, less subsidies received by employers. Bonuses are included in wage and salary costs rather than in costs outside these expenses. 

The total hourly wages and salaries in Bulgaria also increased by 9.9% in the second quarter of 2026 compared to the second quarter of 2025. The non-wage costs increased by 10%. 

In the first quarter of 2026 the total hourly labour costs in Bulgaria increased by 13.4%, as the non-wages costs increased by 14.2% and the costs of wages and salaries increased by 13.2%. 

Across the EU, total hourly labour costs increased by 3.2% on average in the second quarter of 2026. Wages and salaries costs and non-wages costs recorded the same increase of 3.2%. In the euro area, total hourly labour costs increased by 3.1%, with wages and salaries costs rising by 3% and non-wages costs by 3.2%. 

The overall indicator also shows a slowdown. In the second quarter of 2025, total hourly labour costs increased by 4.5% in the EU and by 4.1% in the euro area. In the first quarter of this year, the increase slowed to 3.5% and 3.3%, respectively. 

By main economic activity, the strongest increase in total hourly labour costs in the EU was recorded in construction, at 3.9%. The increase was 3.1% in services and 3% in industry. Outside the business economy, costs increased by 3.3%.