Salary Growth, Recruitment Challenges and Uncertainty Towards Pay Transparency
The SATR H1/2026 report by Manpower Bulgaria outlines the impact of new regulations and employee retention strategies, highlighting employers’ increasingly conscious and sustainable approach to compensation and human capital.
Key insights
- In the first half of 2026, 75.76% of employers plan to increase salaries.
- 65.94% of employers report that employee turnover over the past year did not exceed 2024 levels. The main reason for turnover in 2025 was more competitive pay offered by another company (60.94%).
- 60% of companies experience difficulties in hiring new employees. The most affected sectors are Manufacturing (38.54%), Logistics and Warehousing (25%), and Sales and Procurement (21.35%).
- 81.84% of employers are prepared to some extent for the upcoming EU Pay Transparency Directive, while 18.15% admit they are not familiar with its requirements.
- 43.56% of employers express negative expectations regarding the impact of the new regulations related to the EU Pay Transparency Directive.
Stable salary growth in response to market dynamics
More than 75% of surveyed companies in Bulgaria plan to increase salaries in the first half of 2026, with over half of them applying the increase to all employees. Salary increases are mainly expected to range between 6% and 10%, driven by inflation, the need to retain key talent, and alignment with market levels.
Around 25% of employers do not plan further salary increases, most often due to adjustments already made in 2025 or a strategic focus on internal cost optimisation.
No change in established benefits
While salaries remain the primary tool for competitiveness, additional benefits are evolving at a slower pace. Nearly 75% of companies do not plan changes to their benefits packages. Those that do intend to enhance them are focusing on well-established and proven benefits such as performance-based bonuses, food vouchers, supplementary health insurance, and team-building initiatives.
Growing demand for talent
Average employee turnover in 2025 stands at around 12%, with nearly two-thirds of employers reporting lower levels compared to 2024. The main driver remains more competitive pay offered by another employer. Sectors such as Mechanical Engineering and Banking, Finance and Insurance report the lowest turnover levels (6–7%), while Tourism and Hospitality registers rates of up to 38%.
At the same time, 60% of surveyed companies face recruitment challenges, particularly in Manufacturing (38.54%), Logistics and Warehousing (25%), and Sales and Procurement (21.35%).
Despite these challenges, 41.25% of employers plan to expand their teams in the first half of 2026, with a net employment outlook of +35.31%. The strongest demand for new talent is reported in Banking, Finance and Insurance, Construction, Information Technology, and Telecommunications, Electronics and Electrical Engineering.
The challenges of the EU Pay Transparency Directive
81.84% of employers are informed and prepared for the introduction of the EU Pay Transparency Directive. However, only a small share have already fully implemented the required processes. The most common concerns relate to managing employee expectations, ensuring internal pay equity, and increased administrative burden.
The data shows that pay transparency is still perceived more as a regulatory requirement than as a strategic tool for building trust and strengthening employer branding.
Conclusion
The results of SATR Bulgaria clearly indicate that in 2026 employers will continue to invest in their people, but in a more deliberate and long-term manner. Salary increases remain a key instrument for talent retention. The upcoming EU Pay Transparency Directive challenges companies to reassess not only their processes but also their organisational culture. Those that succeed in balancing financial sustainability with genuine care for their people will be better positioned in an increasingly sensitive and dynamic labour market.
The full survey can be requested HERE for free.
The next SATR report, will be published in July 2026 and will outline trends for the second half of the year, including data on salaries, benefits plans, and employee turnover.
