Bulgaria is leading European country in terms of wage growth, but remains the last in the EU in terms of income. A survey of 350 companies in the country, delivered by a consultancy firm, found that more than half of employers have increased wages by up to 10% this year, with a 14-15% increase in 2022 in response to rising inflation. The largest wage growth is in the major cities, such as Sofia, Varna, Plovdiv, etc. In poorer regions, however, in towns such as Vidin, Kyustendil, Haskovo, wages are up to twice lower, we learn from Polet Zhivina, a salary research expert at the company that conducted the analysis.

"The capital is attracting more foreign investment and multinational companies that can offer higher wages. Such companies are now relocating to other big cities and in recent years there has been a gradual increase in wages, especially in sectors such as IT, finance and manufacturing, which are usually concentrated in Bulgaria's biggest urban centres," says Polet Zhivina in an interview with BNR's Horizon programme.

As per data of the Hans Böckler Foundation, Bulgaria is the only country in the EU where the purchasing power of the population has increased in the last year. By comparison, in Europe the average decline in purchasing power is 4 percent. "However, we all know that we stand in one of the last places in terms of the absolute value of wages in Europe," explains Paulette Zhivina, adding:

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"The growth increase in Bulgaria is about twice as high as in the EU as the Bulgarian economy is trying to catch up with European wages. The country's demographic problem, declining population, low birth rate and high mortality rate are leading to a reduction in the number of people of working age, a tighter labour market supply and, consequently, a rise in labour costs."

88% of companies in Bulgaria provide bonuses to their employees as an additional incentive to keep their jobs, the survey also shows. These include bonuses for recommending another employee as well as for loyalty - staying with the company in the long term.

"Companies are increasingly starting to look after the mental health of their employees, alongside the check-ups and supplementary health insurance they provide in response to the past pandemic. Mental health, along with physical health and work-life balance, is an ever more important factor for employers and employees alike," says Paulette Zivina.

So-called flexible benefits are gaining popularity on the Bulgarian market as another way for companies to show that they value the individual needs of their employees, emphasises Paulette Zhivina, explaining that such benefits can be food vouchers or sports cards, or a choice between additional health insurance and transport allowances.

The hybrid model of work - in-person and remote - as well as flexible working hours are attracting increasing interest from job seekers, Zhivina told BNR .

• Men in Bulgaria receive higher pensions and salaries than women