Bulgaria’s labour market has made substantial progress over the past decade, catching up with the OECD average according to various labour market indicators. Nevertheless, major challenges persist as there are wide labour market disparities across regions, youth and people with low education face substantial employment barriers, and minority groups lag far behind in the labour market. In addition, informality is still prevalent, and wages and productivity remain low compared to OECD countries, despite progress (see Chapter 2). Against this backdrop, it is crucial that Bulgaria continues to take policy action with a view to strengthening its labour market, rendering it more inclusive, and preparing it for upcoming challenges, notably linked to the population ageing and decline, the green transition and digitalisation. This chapter takes stock of Bulgaria’s current labour market policies and highlights recent policy changes.
OECD Reviews of Labour Market and Social Policies: Bulgaria 2025
3. Unlocking the full potential of Bulgaria’s labour market
Copy link to 3. Unlocking the full potential of Bulgaria’s labour market3.1. Recent policy changes to address labour market challenges
Copy link to 3.1. Recent policy changes to address labour market challengesBulgaria has made several changes to its key legislative pieces in the field of employment relations and employment policy over the last years, notably the Labour Code and the Employment Promotion Act (EPA). The changes touched upon many different areas in employment policy, reflecting Bulgaria’s awareness of the challenges facing its labour market. Although many of the amendments are relatively limited when viewed individually, collectively they have introduced notable policy developments.
In 2020, Bulgaria amended its Labour Code, most notably with a view to enhancing the framework for social dialogue and collective bargaining and reduce undeclared work. The amendments on social dialogue and collective bargaining extended the range of topics discussed by the National Council for Tripartite Co‑operation and explicitly inscribed in the law the state’s obligation to promote social dialogue, following two years of tripartite discussions on the matter. While relatively limited, these amendments aim to strengthen the role of social dialogue in Bulgaria, conforming with objectives set in the 2022 EU directive on adequate minimum wages. The sanctions for employers and employees engaging in undeclared work increased, with penalties reaching between BGN 15 000 (EUR 7 669) and BGN 20 000 (EUR 10 223) for companies and between BGN 5 000 (EUR 2 556) and BGN 10 000 (EUR 5 111) for employees in case of repeated violations. These new penalties reflect a significant increase compared to previous levels, up from BGN 1 500 – BGN 15 000 (for companies) and BGN 1 000 – BGN 10 000 (for employees). Additionally new sanctions for systemic violations were introduced, amounting to BGN 20 000 to BGN 30 000 for employers and BGN 10 000 to BGN 20 000 BGN for employees (Republic of Bulgaria, 2023[1]).
Bulgaria amended the Labour Code again in 2022 and, more recently, in 2023. The 2022 changes aimed at reinforcing employment protection, introducing a one‑month cap on probationary periods in the case of employment contracts of less than one year, and requiring employers to provide written refusal reasons in case they reject employees’ requests to move from a fixed-term contract to an open-ended contract, or from part-time work to full-time work. The changes also aimed to reconcile work and family life, introducing parental leave of up to two months for fathers (see Section 5.3), and granting parents of children under nine years the right to propose work amendments (e.g. teleworking), with employers required to provide written reasons in case of refusals. The 2023 changes introduced an automatic formula to determine the minimum wage, moving away from a discretionary determination of the minimum wage (see Section 3.4). They also touched upon administrative efficiency, requiring the National Revenue Agency to maintain an electronic register of employment records, removing the requirement to keep paper copies, starting from 2025 (Republic of Bulgaria, 2023[1]).
In addition, several amendments to the EPA aimed to strengthen the activation of inactive people and improve the support on offer for people who are out of employment. The EPA introduced a requirement for many partner organisations to share data with the Employment Agency (EA) with a view to developing a database that would allow identifying inactive people who are currently out of reach for authorities. In addition, access to support from the EA was facilitated, notably by allowing jobseekers to request support from any Employment Agency office in Bulgaria, not only the municipality of a person’s primary residence. Further changes aim to reduce inactivity in Bulgaria by maintaining a contact with jobseekers who enter subsidised employment, allowing them to remain registered with the EA and benefiting from their services (Republic of Bulgaria, 2023[2]).
3.2. Upskilling Bulgaria’s ageing workforce
Copy link to 3.2. Upskilling Bulgaria’s ageing workforceIn the context of a rapidly shrinking working-age population and low employment rates among young people and the low-educated, policies to promote workforce training, upskilling and reskilling must be a policy priority for Bulgaria. This includes ensuring that all young people – including those from ethnic minorities, those with disadvantaged backgrounds and those living in rural or remote areas – complete school with a qualification and with skills that are sought after in the labour market. It also means providing adult workers – both employed and unemployed – with relevant and attractive training options that increase their productivity and wages and help them adapt to changing labour market needs.
3.2.1. Reforms to vocational education and training are needed to fight early school leaving and promote a successful school-to-work transition
Poor educational outcomes of young people are a major concern in Bulgaria and one likely driver of the high share of young people who are not in employment, education or training (NEET, see Figure 2.5).1 Participation rates in primary and lower-secondary education are below the OECD average, and, if anything, slightly declined over the last decade (UNESCO, 2024[3]); 94% of 6‑14 year‑olds were enrolled in education in 2022, compared to an OECD average of 98% (OECD, 2024[4]). This is mirrored in weak learning outcomes: in the 2022 PISA survey (OECD, 2023[5]; 2023[6]), 15‑year‑olds in Bulgaria performed substantially below the OECD average in mathematics, reading and science, with student performance having declined over the last decade in all three subjects. Nearly one‑in‑three pupils (31%) do not achieve baseline levels of proficiency, scoring below Level 2 in all three subjects – more than twice the share than in the OECD on average (14%). Disparities in learning outcomes by socio‑economic status and ethnic background are large (OECD, 2023[7]). Educational attainment is also relatively low: the rate of early school leaving lies above the EU average (10.5% vs. 9.6% in 2022; Eurostat (2023[8])), and it is particularly high for Roma and young people in less developed and rural regions (European Commission, 2023[9]). Graduation rates from tertiary education have been rising, but also remain low, with 34% of 25‑34 year‑olds having had a tertiary‑level qualification in 2022 compared to 47% in the OECD on average (OECD, 2023[10]).
Addressing the challenges in the vocational education and training (VET) system plays an important role for improving educational outcomes and smoothing the school-to-work transition for less academically minded students and those from disadvantaged backgrounds. About half (52%) of upper‑secondary students in Bulgaria were enrolled in a vocational programme in 2021 – slightly more than the 49% across the EU‑27 on average, though well below the rates up to 70% in Austria, Czechia, Slovenia and the Netherlands (Eurostat, 2024[11]). While upper-secondary VET generally has a positive image in Bulgaria (Daskalova and Ivanova, 2018[12]), VET schools have a higher concentration of low‑performing and disadvantaged students, and completion rates are much lower than for general education programmes, and they have been declining over time (World Bank, 2022[13]). According to the recent OECD Skills Strategy Bulgaria (OECD, 2023[7]), this likely reflects a combination of the lower academic proficiency of VET students (the Bulgarian school system is very selective and tracks students from the early age of 13); challenging curricula (VET students need to follow both the vocational and the general curriculum); and lower teaching quality. Many VET graduates struggle with the school‑to‑work transition: within the first three years of graduation, less than two‑in-three (63%) young people with a vocational degree who are no longer in education or training were in employment in 2022, one of the lowest rates across EU countries (EU average of 77%; Eurostat (2023[14])).
Making vocational education and training more responsive to labour market needs is one area that deserves particular attention. Bulgaria’s VET system remains highly centralised despite recent efforts to increase the autonomy of municipalities and regions in delivering VET and to strengthen the involvement of social partners. This applies notably for the process for updating VET curricula, which limits the system’s responsiveness to local needs (OECD, 2023[7]). Lack of systematic collection, analysis and use of labour market data prevents the identification of skill needs and assessment of the quality and relevance of VET. Work‑based learning forms a substantial part (50%‑70% or more) of all programmes in upper‑secondary VET (World Bank, 2022[13]). However, most of it is offered in schools rather than with employers, with less than 10% of Bulgarian enterprises involved in providing work‑based learning in VET. An important hurdle for more active employer involvement is that over 41% of VET students are enrolled in schools in small or very small towns, where employer capacity is often low and students face long commutes and poor transport infrastructure to reach work-based learning opportunities.
Bulgaria has announced significant efforts to reduce early school leaving and reform and modernise its VET system with a view to smoothening young people’s school-to-work transition. Under its 2030 targets for the European Pillar of Social Rights, Bulgaria committed to an ambitious reduction in the early school leaving rate to 7% by 2030, and a mechanism to co‑ordinate outreach to out-of-school children is currently being financed under the European Social Fund Plus (ESF+).2 Bulgaria’s National Recovery and Resilience Plan (NRRP)3 foresees substantial reforms to the regulatory framework of VET (Council of Ministers of the Republic of Bulgaria, 2022[15]), and a National VET Programme was adopted in 2023 with the aim of modernising training facilities, materials, teaching and examination contents in line with labour market requirements (European Commission, 2023[16]). In 2022, Bulgaria carried out first changes to its Vocational Education and Training Act under the EPA facilitating access to VET for people above the age of 16 years without education and qualification providing for a possibility to combine participation in vocational training with simultaneous literacy training. The provision of vocational training in certain occupations with expected skill shortages is being supported though financial incentives and by permitting schools to offer smaller classes where student demand is low.
Bulgaria has also taken concrete steps in recent years to strengthen employer involvement in the provision of work‑based learning. One priority area has been the rapid expansion of the dual VET model since its introduction in 2016, to nearly 12 000 students in 2022/23, or around 7% of all initial VET students. Apprenticeships are organised by vocational schools in partnership with one or several employers, notably in manufacturing. The apprentices receive 2‑3 days of in‑company training per week in grades 11 and 12, covered by a remunerated employment contract (Hristova, 2020[17]). However, a challenge remains that many employers drop out of the programmes before students start their in-company training in grade 11. The expansion of dual VET is currently being support by a Ministry of Education and Science project with BGN 18 million (about EUR 9.2 million) of funding, including for the training of teachers and mentors, the purchase of equipment and clothing, and information campaign targeting employers and parents. Bulgaria provides financial support to employers who offer traineeships, apprenticeships and employment to unemployed and inactive young people under its Human Resources Development Programme 2021‑27. As part of its active labour market policy, Bulgaria runs two subsidy schemes for work‑based training of registered jobseekers, which are regulated under the EPA.4
3.2.2. Bulgaria is taking action to increase insufficient adult learning participation
Participation in adult learning is very low in Bulgaria (Figure 3.1). In 2022, less than 2% of 25‑64 year‑olds took part in adult learning programmes, six times less than on average in the EU (12%). Low participation levels also extend to non-formal job-related education and training, with participation rates being lower than in any OECD country with available data (OECD, 2023[10]). Among Roma, people with low educational attainment and older workers, participation in adult learning is almost inexistant (OECD, 2023[10]).
Figure 3.1. Too few workers in Bulgaria participate in adult learning
Copy link to Figure 3.1. Too few workers in Bulgaria participate in adult learningAdult participation in formal and/or non-formal education, persons aged 25‑64, 2022
Note: Persons who participated in formal and/or non-formal education and training in the previous four weeks. Data refer to 2019 (Bulgaria, Latvia. United Kingdom).
Source: Eurostat dataset: Participation rate in education and training (last 4 weeks) by sex and educational attainment level (accessed 18 October 2024).
Insufficient adult learning presents a growing challenge for the Bulgarian labour market as demographic trends and emigration risk exacerbating existing labour shortages. According to survey data, difficulties to hire skilled staff is the top long-term obstacle to investment in Bulgaria, concerning 88% of employers (European Investment Bank, 2022[18]).
Low participation in adult learning is driven by both supply and demand. One the one hand, despite facing recruitment difficulties, employers tend to provide fewer adult learning possibilities than in other countries. On the other hand, surveys point to a lack of motivation among adults in Bulgaria to participate in adult education or training, with the widespread perception that these are neither necessary nor useful (OECD, 2023[10]).
Recognising the central importance of adult learning, several national strategies make a priority of improving adult skills, including the Strategic Framework for the Development of Education, Training and Learning in the Republic of Bulgaria (2021‑30) and the Employment Strategy of the Republic of Bulgaria (2021‑30), among others. Providing career guidance more systematically, improving the validation of non-formal skills and updating VET programmes are among the key objectives outlined in these strategies.
Bulgaria has started to take action to reinforce adult learning, using national budget but also heavily relying on EU funds. The EA runs awareness campaigns and guides job seekers towards training to raise motivation for adult learning and facilitate access. Under its NRRP, Bulgaria is developing a “digital compass” that matches job seekers with training opportunities (and vacancies), and is planning to provide large‑scale digital skills trainings to 500 000 people (12% of the working-age population), coupled with the implementation of a platform for adult e‑learning (European Commission, 2022[19]). In parallel, further initiatives have started under the Human Resources Development Programme, such as a national information campaign on adult learning. In 2023, the Council of Ministers enacted a degree to pave the way for the use of training vouchers under the Human Resources Development Programme 2021‑27 and the NRRP and the Just Transition Fund (Council of Ministers, 2023[20]). Despite these new and ongoing efforts, as well as recent changes to the Labour Code to extend the obligation of employers to enable participation training, the effects on participation in adult learning and adult skills remain to be seen. Against this backdrop, Bulgaria will need to continue its efforts to facilitate and encourage participation in adult learning, acting upon both supply and demand of adult learning, and closely monitor the effects of all recently started policy initiatives in this field to take evidence‑based decisions on future policy action.
3.3. Enhancing employment support to assist those excluded from the labour market
Copy link to 3.3. Enhancing employment support to assist those excluded from the labour marketBulgaria has significantly improved the provision of active labour market policies (ALMPs) over the last years, but further efforts are necessary to ensure effective and efficient employment support, especially for disadvantaged jobseekers. Bulgaria spends about 0.21% of its GDP on ALMPs, less than half the OECD average of 0.45%, and there is scope for additional investment in employment support (Figure 3.2, Panel A). ALMPs in Bulgaria are still heavily focused on direct job creation programmes, which account for more than half of ALMP spending (Figure 3.2, Panel B), although international evidence points to limited effectiveness of direct job creation programmes (Card, Kluve and Weber, 2017[21]). Other types of ALMPs, including training programmes that would help up-skill the Bulgarian labour force, are less widely used. Against this background, channelling some funds from direct job creation programmes towards other types of ALMPs that have proven successful would contribute to a more balanced offer of employment support (OECD, 2022[22]).
The EA, which is an executive agency of the Ministry of Labour and Social Policy, organises the provision of ALMPs throughout the country. It offers tailored support to vulnerable groups, including outreach activities to Roma people (see Box 3.1) and NEETs, but there is still a large pool of inactive people who are out of reach for Bulgarian authorities, especially among ethnic minorities, people with low educational attainment and those living in rural areas. In addition, the high disability rate also contributes to the large number of inactive people, and many inactive people with a disability are not registered with the EA. Aiming to address these issues, Bulgaria amended the EPA in 2022 and 2023 to enhance the data exchange between the EA and partner institutions in order to be able to identify economically inactive persons (see Section 3.1) (Republic of Bulgaria, 2023[2]).
In practice, the provision of employment support involves heavy working processes for EA staff, mostly due to outdated technical equipment and cumbersome working procedures, leading to a substantial loss in efficiency limiting the impact the EA can have. Bulgarian authorities are currently actively working to alleviate this problem and modernise the EA and its National Database under Bulgaria’s NRRP, which is of central importance for the work of EA staff.
Figure 3.2. Investment in active labour market policies is low and heavily focused on direct job creation
Copy link to Figure 3.2. Investment in active labour market policies is low and heavily focused on direct job creation
Note: Data refer to 2020 (Italy, Romania). OECD is an unweighted average of the 33 member countries shown. Category 4.2 relates to temporary employment maintenance incentives which were dramatically affected by exception measures to address the challenges of COVID‑19 and is excluded from this comparison.
Source: Eurostat dataset: Labour market expenditure (Bulgaria, Croatia, Romania, OECD Data Explorer • Labour Market Programmes and OECD Data Explorer • Employment and unemployment by five‑year age group and sex - indicators for unemployment.
Box 3.1. The labour market and social situation of Roma people remains alarming
Copy link to Box 3.1. The labour market and social situation of Roma people remains alarmingThe Roma population lacks far behind in terms of labour market and social outcomes. Only about one‑fifth of working-age Roma have a formal job, the vast majority of the Roma population has low levels of education, and poverty is rampant, with almost two‑thirds of Roma at risk of poverty (see Sections 2.4 and 2.5).
Bulgarian authorities have taken policy action to improve the situation of Roma people. In 2022, the Council of Ministers adopted a National Strategy for Equality, Inclusion and Participation of the Roma (2021‑30), which builds on a previous Strategy ending in 2020 and sets out guidelines to foster the inclusion of Roma in the fields of employment, education, health and housing (MRRB, 2022[23]). The strategy identifies approaches to improve the situation of Roma people and defines 24 indicators to measure progress over time, setting ambitious targets, such as halving the poverty gap between Roma and the general population (from 42 percentage points in 2020), and reducing the proportion of Roma children who attend school in classes with no or limited ethnic diversity from 58% in 2020 to less than 20%, with a view to reducing de facto segregation in education (e.g. in poor neighbourhoods).
The introduction of Roma mediators was an important step towards a better inclusion of Roma people in the labour market, although considerable efforts will still be needed to narrow the gap. The main task of Roma mediators is to establish a contact with inactive or unemployed Roma people, inform them about the availability of public services and support them in accessing training or employment. While Roma mediators have shown to be successful, they face tight financial constraints in their work and the number of Roma mediators is limited, although their number has increased in recent years (OECD, 2022[22]). Further strengthening the network of Roma mediators would enable more comprehensive support.
Despite these steps to improve labour market and social outcomes of the Roma community, the situation remains challenging and further efforts are needed for further progress. Current legislation still poses some hurdles for Roma people who are excluded from society. The Civil Registration Act sets strict registration requirements to start employment, which poses challenges for people with no tenancy agreements/proof of ownership, effectively preventing many Roma people from working. In addition, the Protection Against Discrimination Act bans forced segregation, but does not extend to de facto territorial and educational segregation, limiting the legal basis to address poverty slums which are usually inhabited by the Roma community (Tomova and Stoytchev, 2021[24]).
Source: MRRB (2022[23]), National Strategy Of The Republic Of Bulgaria For Equality, Inclusion And Participation Of Roma – 2021‑30, www.mrrb.bg/bg/jilistna-politika/ravenstvo-priobstavane-i-uchastie-na-romite/; OECD (2022[22]), Reaching Out and Activating Inactive and Unemployed Persons in Bulgaria, https://doi.org/10.1787/7b91154a-en; Tomova, I. and L. Stoytchev (2021[24]), Thematic Report on Roma.
3.4. Fostering social dialogue and expanding worker representation
Copy link to 3.4. Fostering social dialogue and expanding worker representation3.4.1. There is a sound framework of social dialogue, challenged by low collective bargaining coverage and political instability in recent years
There is a sound framework of social dialogue in Bulgaria. At national level, social partners participate in the National Council for Tripartite Co‑operation (NCTC), which is a consultative council for labour market and social policy. In addition, there are about 50 branch councils for co‑operation at sectoral level, district councils at the district level, about 80 councils for social co‑operation at the municipal level and special commissions at company level (Dimitrov, 2021[25]).
Consultations with social partners precede any legislative changes in labour relations and social security. Furthermore, it has become standard practice in recent years to invite social partners early on to join expert working groups tasked with drafting normative acts, before the official consultation process starts, to achieve better consultation outcomes and ensure that the legislation reflects the needs and concerns of all stakeholders.
There are two cross-industry trade unions and five representative employer organisations in Bulgaria. The two trade unions have about 200 000 and 75 000 active members, respectively, with a stable number of members, while each of the employer organisations represents between 10 000 and 50 000 member companies, with either a stable or increasing trend in membership (Eurofound, 2023[26]). Trade unions cover about 11% of workers according to operational data.
Collective bargaining between trade unions and employers can take place at sector or municipal level, but the most common level is the company level, reflecting a high degree of decentralisation in collective bargaining. In practice, collective bargaining coverage is low, falling way short of the 80% set in the EU directive on adequate minimum wages. National Statistical Institute data (although partial) point to a collective bargaining coverage of less than 30% in Bulgaria, with a stagnant trend, posing challenges for social partners (Economic and Social Council, 2023[27]). In addition, union representation and collective bargaining do not cover independent contractors who work on civil law contracts rather than employment contracts based on the Labour Code, leaving them more vulnerable to precarious working conditions (Confederation European Trade Union, 2022[28]). In past years, political instability, with the Bulgarian Parliament having major difficulties to form a stable governing coalition, added to these challenges and was a barrier to effective tripartite social dialogue.
3.4.2. The minimum wage has increased rapidly amid strong wage growth
The nominal minimum wage almost tripled between 2014 and 2024, moving from BGN 340 to BGN 933, in line with strong wage increases. Compared to the median wage, the minimum wage has remained fairly stable over time, slightly decreasing from 56% to 50% of the median wage between 2014 and 2023. This level is close to the OECD average, which stood at 56% in 2023 (Figure 3.3).
The minimum wage is set at the national level and is identical for workers in all regions and all sectors. Due to the stark wage differentials in Bulgaria, it is much closer to the median wage in poor regions with low wage levels than on average in the country, bearing the risk of a compression of the lower end of the wage distribution in these regions. If a contract stipulates a wage below the national minimum, it is deemed void, and the prevailing minimum wage becomes applicable. There is the possibility of more generous firm-specific minimum wages due to provisions in collective bargaining agreements at enterprise level, but their role is relatively limited in practice, concerning about 120 000 employees in 2022, mostly in large companies (NIPA, 2023[29]).
Up until 2023, the national minimum wage was fixed by the Council of Ministers on a discretionary basis following public discussion, interinstitutional consultations, and discussions with social partners in the NCTC, with a view to ensuring that the adjustments equally balance the needs of workers and businesses. A change to the Labour Code in 2023, aiming to react to the EU directive on adequate minimum wages, introduced an automatic formula for the minimum wage going forward, setting it to 50% of the average wage of the previous four quarters (Republic of Bulgaria, 2023[1]). While consultations with the social partners still take place, this automatic adjustment sparked opposition by employer organisations, who argue that it undermines the role of the social partners in wage setting. The new indexation method came into effect for the first time to set the minimum wage for 2024, leading to a nominal increase by 20% compared to 2023 in a context of very high inflation (Eurostat, 2024[30]). As about 50% of workers earn the minimum wage, strong minimum wage increases above productivity growth can pose a challenge for competitiveness.
Figure 3.3. At 50% of the median wage, Bulgaria’s minimum wage aligns with the OECD average
Copy link to Figure 3.3. At 50% of the median wage, Bulgaria’s minimum wage aligns with the OECD averageMinimum wage relative to median wages of full-time workers, 2023
3.5. Continuing efforts to combat informality
Copy link to 3.5. Continuing efforts to combat informalityReducing informality and undeclared work is a policy priority for Bulgarian authorities considering their very high levels (see Section 2.2.4). Bulgaria uses a combination of controls, legislative measures and information campaigns to reduce informality, which are showing results but need to be maintained and reinforced to effectively address informality in the medium and long term.
In 2022, the Labour Inspectorate controlled close to 35 000 enterprises. Among them, about 4 000 were controlled for the first time, with the remainder being follow-up inspections. Follow-up controls show a high degree of compliance with previously imposed measures, highlighting that inspections have an impact on the behaviour of companies. Almost 90% of controls targeted small or micro enterprises, which have a higher tendency to engage in informality (Labour Inspectorate, 2023[31]).
The number of controlled enterprises remained broadly stable in 2022 compared to before the COVID‑19 pandemic, but authorities are taking action to strengthen the capacity of the Labour Inspectorate. Between late 2022 and early 2024, the Labour Inspectorate increased its staff by 20%, and further increases are planned. The Labour Inspectorate conducts controls in co‑operation with the National Revenue Agency, and co‑operation agreements have been signed between the two institutions, as well as with the National Social Security Institute, aiming to make controls more efficient. Labour inspectors have the competence to declare an employment relationship when they discover undeclared work, thus enabling immediate on-site action.
In terms of legislative measures, Bulgaria relies on both preventive and punitive measures. In 2015, Bulgaria amended its Labour Code introducing simplified hiring possibilities allowing for one‑day labour contracts for short-term seasonal workers in the agricultural sector, with a view to reducing the administrative burden on employers (Republic of Bulgaria, 2023[1]). In addition, Bulgaria has put in place restrictions for employers that were sanctioned for hiring workers without a formal contract, excluding them from public procurement tenders, which is especially important for in the construction sector. This measure has shown positive results, reducing the prevalence of undeclared employment in the construction sector (Molnar, Abendschein and Zhelyazkova, 2023[32]). Furthermore, penalties for companies and employees engaging in undeclared work were increased (see Section 3.1)
Bulgaria also runs information campaigns about informality and undeclared work, which are important considering the very low level of awareness about the topic (OECD, 2023[33]). In early 2018, the National Revenue Agency launched the information campaign “Salary in an envelope” and made available an online tool to calculate the loss a worker incurs due to undeclared employment (NRA, 2023[34]). The Labour Inspectorate also participates in pan-European information campaigns. Nevertheless, despite these efforts, informality and undeclared work are still widespread and Bulgaria will need to continue its action to combat the problem effectively.
References
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[33] OECD (2023), OECD Economic Surveys: Bulgaria 2023, OECD Publishing, Paris, https://doi.org/10.1787/5ca812a4-en.
[7] OECD (2023), OECD Skills Strategy Bulgaria: Assessment and Recommendations, OECD Skills Studies, OECD Publishing, Paris, https://doi.org/10.1787/c2eb2f34-en.
[5] OECD (2023), PISA 2022 Results (Volume I): The State of Learning and Equity in Education, PISA, OECD Publishing, Paris, https://doi.org/10.1787/53f23881-en.
[6] OECD (2023), PISA 2022 Results: Factsheets - Bulgaria, https://www.oecd.org/publication/pisa-2022-results/country-notes/bulgaria-29d65f4b/.
[22] OECD (2022), Reaching Out and Activating Inactive and Unemployed Persons in Bulgaria, Connecting People with Jobs, OECD Publishing, Paris, https://doi.org/10.1787/7b91154a-en.
[35] OECD (forthcoming), Education and Skills in Bulgaria: Reviews of National Policies for Education, OECD Publishing, Paris.
[2] Republic of Bulgaria (2023), Employment Promotion Act.
[1] Republic of Bulgaria (2023), Labour Code / Кодекс на труда.
[24] Tomova, I. and L. Stoytchev (2021), Thematic Report on Roma.
[3] UNESCO (2024), Total net enrolment rate by level of education, https://data.uis.unesco.org/#.
[13] World Bank (2022), “Vocational Education and Lifelong Learning in Bulgaria: Situation Analysis and Policy Direction”, https://www.eufunds.bg/sites/default/files/uploads/opseig/docs/2021-08/EN_VET_LLL_June_22.pdf.
Notes
Copy link to Notes← 1. For a more detailed discussion of the Bulgarian education and training system, see OECD (forthcoming[35]).
← 2. ESF+ is the EU’s main instrument for supporting the implementation of the European Pillar of Social Rights. Over the period 2021‑27, Bulgaria will invest EUR 2.6 billion from the ESF+ to improve access to employment, increase skills to help people navigate the digital and green transition, and promote access to quality education and training (European Commission, 2022[36]).
← 3. EU Governments prepared national recovery and resilience plans to benefit from funding through the EU Recovery and Resilience Facility (RRF). The RRF is a temporary instrument to support countries’ economic recovery from the COVID‑19 pandemic and promote the greening, digitalisation and resilience of EU economies. The RRF finances reforms and investments in EU Member States made between February 2020 and December 2026 (European Commission, 2022[36]).
← 4. An apprenticeship subsidy, introduced in 2008, is available for employers who offer work-based training to unemployed workers with at most lower-secondary education and without qualifications; a second subsidy scheme supports dual-type training offered to unemployed workers in partnership with a vocational training institution. The apprenticeship subsidy covers the apprentice’s labour remuneration for a period of 12 months; the training subsidy covers the labour remuneration for up to 18 months as well as the expenditures for training at the training institution.