Food Vouchers in Bulgaria Lose 45% of Their Value in Five Years, No Increase Approved

Over the past five years, food vouchers in Bulgaria have lost nearly 45% of their purchasing power, according to an analysis by the Association of Food Voucher Operators. The primary reason is food price inflation, which has significantly eroded their value. The association argues that an urgent adjustment is needed, proposing an increase in the tax-free monthly amount from 200 BGN to 300 BGN (100 to 200 euros).

Data from Eurostat shows that, when factoring in average inflation for food products, the real purchasing value of food vouchers has declined by 53% over five years and by 38% over three years. Without considering additional inflation since the beginning of 2025, 200 BGN today is equivalent to only 131 BGN compared to 2019 and 146 BGN compared to 2022. To maintain the 2022 purchasing value, the vouchers would need to be at least 275 BGN in 2025.

Despite calls for an increase, the National Assembly voted to keep the maximum monthly voucher amount at 200 BGN, maintaining the total annual quota at 1.6 billion BGN under the Corporate Income Tax Act. Employers retain the discretion to provide vouchers and determine their value, with the industry average ranging between 150-160 BGN. Currently, more than 800,000 employees receive them.

Food prices in Bulgaria have risen sharply, further diminishing the effectiveness of vouchers. According to data based on the European Classification of Individual Consumption, bread prices have risen by 18.9%, dairy and eggs by 41.7%, meat by 41.1%, and vegetables by 43.5%. Additional price increases since early 2025 have further strained household budgets, with bread rising another 20%, cucumbers by 13.7%, and cooking oil by 5.4%.

A survey from the Edenred Food Barometer 2024, conducted among 6,800 employees, indicates that two-thirds of employees fully use their vouchers by the end of each month. If the amount were raised, 93% of respondents said they would purchase more food for home consumption, while 85% believed they would improve the quality of their meals. Additionally, 54% of respondents stated that an increase would enable them to afford lunch at work daily without financial strain.

Concerns about rising costs persist, with 72% of respondents expecting further price hikes. Eating out is the first expense they would cut back on, while more than half of households report that food accounts for over a third of their monthly budget—an expense they are reluctant to reduce.

The association also argues that raising the voucher amount would have a positive fiscal impact by increasing VAT revenue through higher domestic food consumption. Since vouchers can only be used within Bulgaria, they also provide direct support to local businesses. However, as the maximum amount remains unchanged, employees will continue to face shrinking purchasing power and higher financial pressure when buying essential food products.