Bulgaria saw a sharp rise in labor costs at the close of 2025, with total employer expenses per hour worked increasing by 13.9% in the fourth quarter of 2025 compared to the same period in 2024, according to preliminary figures from the National Statistical Institute.
The rise was more pronounced in the services sector, which recorded a 14.8% increase, while industry grew at a slower pace of 11.8%. Among individual sectors, the largest jumps were reported in “Real estate operations” (+22.5%), “Construction” (+20.1%), and “Administrative and support activities” (+17.2%), highlighting particularly strong cost pressures for businesses connected to property and auxiliary services.
Compensation costs for employees rose by 13.8% YoY, while other labor-related expenses, including social security contributions and additional payments, grew slightly faster at 14.3%. Sectoral differences remain striking, with “Real estate operations” again leading the growth at +23.5%, whereas the “Production and distribution of electricity, heat and gaseous fuels” sector saw a modest increase of just 3.6%.
These figures reflect a continuing acceleration in labor costs at the end of 2025, presenting challenges for employers while simultaneously signaling sustained pressure to raise employee incomes across the economy. (Novinite)