Hourly labor costs in Bulgaria rose sharply in the first quarter of 2026, with wage-related expenses increasing by 13.2% compared to the same period a year earlier, according to data from the National Statistical Institute (NSI). Non-wage costs, excluding salaries, also recorded growth of 1.42%.

The NSI reports that wage costs include gross salaries as well as social contributions and various allowances paid by employers. Overall employer expenses per hour worked rose even faster, reaching a 13.4% increase year-on-year.

Sectoral data show uneven dynamics across the economy. The smallest rise in wage costs was recorded in real estate operations, where growth stood at 7.7%, while the strongest increase was registered in “Other activities,” which saw a jump of 20.6%.

Across broader sectors, industry reported a 14.1% increase in total labor costs, while services recorded a slightly lower rise of 12.5%, indicating continued upward pressure on employment-related expenses in both segments.

Looking at specific branches of the economy, the most pronounced increases in total labor costs were seen in public administration, where expenses surged by 20.3%, followed by “Other sectors” at 19.3%, and electricity, heat and gas production and distribution at 18.9%.