site.btaOutgoing Labour Minister Gutsanov Says 5% Public-Sector Pay Rise Is Guaranteed

Outgoing Minister of Labour and Social Policy Borislav Gutsanov said the planned 5% pay rise for employees in the budget-funded sector was fully guaranteed, speaking to reporters on Friday.

He added that the Council of Ministers had already adopted a decision enabling the indexation, after experts warned it could clash with the Public Finance Act.

Gutsanov said he sees no such risk because there is already a Council of Ministers decision in place. He added that, in his view, the situation is clear and that he regrets the increase was not 10%, as originally planned.

On January 21, 2026, the Council of Ministers approved a decision to apply provisions of the budget extension law related to indexing pay in budget-funded organizations. Based on information provided by the National Statistical Institute, the accumulated annual inflation as of December 31, 2025, is set at 5% for the purposes of the law.

Wages of employees in budget-funded organizations were indexed by 5%, effective January 1, 2026.