Wage increases and business stability in Bulgaria in the second half of 2024
The survey, which we conducted together with Assert International Bulgaria in June and July 2024, reveals key trends in salaries, fringe benefits, and bonuses. With 212 respondent companies across a range of business sectors, the analysis provides a detailed picture of current and planned changes to pay and benefits in the second half of the year.
The key results show that nearly 75% of the companies surveyed have increased their employees' salaries in the first half of 2024, with the main reasons for this being inflation, the drive to retain key employees, and the need to align salaries with market levels. Salary increases have mostly been one-off, in the 6% to 10% range.
Planned changes for H2 2024
The majority of companies (around 77% of respondents to the survey) say they are not planning any new pay increases in the second half of the year. These results underscore the stability of established pay indexation practices at least once a year.
A small proportion of companies (16.5%) are planning changes to fringe benefits, with meal vouchers, additional health insurance, and sports cards being the most common.
Growth, stability, and challenges
The survey shows moderate growth in headcount, with 42% of companies surveyed, the majority of which have increased their staff by up to 5%. Half of the companies do not plan any further expansions in their teams, and another 31.1% anticipate an increase in their workforce by the end of the year.
The main challenges facing employers include retaining staff and dealing with competition on pay. However, the trends show a sustainable and balanced approach to resource management as companies strive to maintain competitiveness in the labour market.
The survey provides valuable information for strategic business planning in Bulgaria. Despite the economic challenges, employers continue to follow sustainable and sound practices in their compensation and resource management, which contributes to long-term competitiveness in the labour market.
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