site.btaLabour Costs in Bulgaria Record Highest Annual Increase in EU in Q2

In the second quarter of 2025, hourly labour costs in Bulgaria rose by 13.4%, which is the highest annual increase in the EU, Eurostat reported on Tuesday. For comparison, labour costs increased by 5.1% in the euro area and by 4.0% in the EU, compared with the same quarter of the previous year. 

The two main components of labour costs are wages and salaries, and non-wage costs. 

After Bulgaria, the highest increases in hourly wage costs for the whole economy were recorded in Hungary (+11.0%), Romania (+10.4%), Estonia (+10.3%) and Greece (+10.1%). The lowest increases were recorded in France (+1.4%), Denmark (+1.5%) and Malta (+1.9%). 

In the second quarter of 2025, the hourly wage costs in Bulgaria increased by 13.4%, placing the country first in the EU by this measure as well. Social security and other non-wage costs rose by 12.3%. Bulgaria last topped this ranking in the first quarter of 2023. 

In the non-business economy, labour costs in Bulgaria rose by 14.6%, the highest increase in the EU. In the business sector, labour costs increased by 12.8%, also ranking first among EU member states.

In the first quarter of the year, employer labour costs in Bulgaria rose by 12.4% year-on-year, placing the country third in the EU in terms of growth. The last time Bulgaria ranked first in the EU for labour cost growth was in early 2023.

In the euro area, in the second quarter of 2025 compared with the same quarter of the previous year, the costs of hourly wages and salaries increased by 3.7%, while the non-wage costs increased by 3.4%. 

In the EU, in the second quarter of 2025 compared with the same quarter of the previous year, the costs of hourly wages and salaries increased by 4.1%, while the non-wage component increased by 3.8%. 

In the euro area, hourly labour costs in the increased by 2.7% in the mainly non-business economy and by 4.0% in the business economy. Within the business sectors, costs rose by 3.3% in industry, 4.7% in construction, and 4.3% in services. Across the EU, hourly labour costs grew by 3.1% in the non-business economy and by 4.4% in the business economy, with increases of 3.9% in industry, 4.8% in construction, and 4.6% in services. 

Among economic activities in the EU, the highest annual increases in hourly wage costs were recorded in professional, scientific and technical activities, with a rise of 8.9%, and in mining and quarrying, which saw a 6.7% increase. The lowest increase was observed in real estate activities, where hourly wage costs rose by just 1.6%. 

In terms of the non-wage component, the largest increases were again registered in professional, scientific and technical activities, up by 7.3%, and in mining and quarrying, up by 6.6%. The lowest annual increase in non-wage costs was recorded in administrative and support service activities, at 1.8%.