The leaders of Bulgarian Socialist Party (BSP), National Movement Simeon II (NMSII) and Movement for Rights and Freedoms (MRF), the parties in Bulgaria's ruling coalition, decided that the minimal salary in 2007 will be 180 leva.

The leaders of the three parties discussed draft budget 2007, a Council of Ministers press release said. Bulgaria's National Assembly would vote the budget 2007 on first reading on November 16 2006.

The initial draft budget said that the minimal salary will rise to 170 leva. Currently the minimal salary amounts to 160 leva.

The ruling coalition agreed that the pensions rise should be 8.5 per cent starting July 1 2007, the press release said.  The wages would rise by 10 per cent.

Minimum non-taxable income would increase from 180 to 200 leva, the press release said.

The social security provision ratio employer to employee would remain unchanged.

Budget 2007 would provide 2,55 per cent of the GDP for the country's defence.