The national council for tripartite co-operation approved a proposal for increase of the minimal salary to 180 leva from January 1 2007.

Currently the minimal salary in Bulgaria is 160 leva. The proposal is for an increase of 12.5 per cent, a Council of Ministers press release said.

The minimal hour wage would be increased from 0.95 to 1.07 leva per hour.

On November 13 2006 the leaders of the Bulgarian Socialist Party (BSP), National Movement Simeon II (NMSII) and Movement for Rights and Freedoms (MRF), the parties in Bulgaria's ruling coalition, already took the political decision for the minimal salary increase.

The initial draft budget for 2007 said that the minimal salary will rise to 170 leva.