Is Budget 2026 Ready and What Does It Foresee?

The draft budget for next year proposes a higher pension contribution by two percentage points, an increased maximum monthly amount of the insurable earnings, and a freeze on maternity pay for the second year.

A minimum monthly wage of BGN 1,183 and a 2% increase in social security contributions are included in the draft budget for the State Social Security system. This figure is BGN 30 lower than the minimum wage calculated according to the legal formula outlined in the Labour Code.

The Ministry of Social Policy has long recommended a minimum wage of BGN 1,213, or €620.20, in line with the law. This figure was also discussed at the National Council for Tripartite Cooperation three weeks ago. Today, October 28, Social Policy Minister, Borislav Gutsanov, reiterated that he had proposed this amount in next year’s budget, which will be the first prepared in euros.

“I have signed off on BGN 1,213, as stipulated by law, and you can see that the proposals currently circulating are close to this figure. But let’s wait for the official figures, and then we will discuss,” said Borislav Gutsanov, Minister of Labour and Social Policy.

When asked whether the minimum wage might end up lower than €620, Gutsanov replied: “Let’s wait for the official figures and we will comment then.”

Trade unions have stated that any figure other than BGN 1,213 is unacceptable. Gutsanov responded: “The law is clear, it has passed through the National Council for Tripartite Cooperation, and I have signed it. From here, it must pass through the budget process to see what is feasible.”

Ahead of the budget presentation, none of the government representatives were willing to clarify what would happen with social security contributions.

“When will contributions rise?” asked BNT.

“Let’s wait for the completed document and then we will present it in full,” replied Deputy Prime Minister Atanas Zafirov.

“Is the budget ready?” BNT asked.

“Everything is ready,” Zafirov responded.

Both Zafirov and GERB-UDF have assured that all deadlines will be met. The financial framework is expected to be submitted to Parliament by Friday, following review by the National Council for Tripartite Cooperation and the Council of Ministers.

“There is no tension within the Joint Governance Council. All budgetary laws will be submitted within the statutory deadline set by the Public Finance Act, which is clear—by the end of this month,” said Kostadin Angelov of GERB-UDF.

Yesterday, the Bulgarian Socialist Party proposed 11 measures to reform tax and social security legislation, including introducing a progressive income tax. GERB-UDF said after a Joint Governance Council meeting that these proposals had not been discussed.

“No such decision has been made at this stage,” Angelov noted.

“Every proposal must go through the Joint Governance Council. This is standard practice, and I believe we will follow the ‘Swiss rule’: ensure the minimum wage and protect the three most vulnerable groups in the country,” added Borislav Gutsanov.

The International Monetary Fund has also recommended abolishing Bulgaria’s flat 10% tax and replacing it with a progressive system, meaning different rates depending on income.