Bulgaria: Social Security Hike Moves Forward as Opposition Warns of Pressure on Middle Class

Bulgaria’s parliament approved at first reading the 2026 state social security budget, with GERB, DPS-New Beginning, BSP and TISP backing measures that raise social security contributions for all private-sector employees. The vote went ahead despite objections from business groups, economists and opposition parties. Employer organizations boycotted budget talks and warned of protests over what they see as a harmful increase in labor costs.

During the session, the ruling majority also pushed through a shorter window between the two readings of the bill, cutting the usual 14 days down to just 4. Opposition MPs described the move as an attempt to force the budget through without proper debate. Later in the day, lawmakers also supported the draft budget of the National Health Insurance Fund, which keeps the health insurance contribution unchanged at 8 percent.

Under the planned changes for 2026, pension contributions will rise by 2 percentage points. The maximum insurable income will increase from 4130 leva to 4600 leva, or roughly 2352 euros. The minimum wage and the minimum insurable income will be set at 1213 leva, about 620 euros. The impact will be felt across the board, but people earning above the current maximum threshold will face the biggest jump in contributions. At the same time, the draft budget does not foresee higher unemployment benefits or new support for other insurance risks. One of the few increases is for maternity pay in the second year, which will grow from 780 to 900 leva, or around 460 euros.

Pensions are scheduled to be adjusted from July 1, 2026 following the Swiss formula, with preliminary expectations of a 7 to 8 percent rise. The minimum pension for insurance service and old age is planned to go up from 630 leva (322 euros) to 679 leva (347 euros). The maximum pension remains fixed at 3400 leva, or 1738 euros, the same level as in 2025.

The government insists the proposed framework is the only workable option. Labor and Social Policy Minister Borislav Gutsanov told MPs that while the budget could always be better, it reflects what is feasible under current conditions. Opposition parties disagreed sharply. Martin Dimitrov from WCC-DB argued that the plan represents the heaviest overall increase in the tax and insurance burden in a quarter of a century. He accused the cabinet of penalizing the middle class and compliant businesses. Assen Vassilev added that the approach is “predatory”, claiming the higher contributions are not meant to fund better pensions but to fill the state coffers and support unrelated spending, including a public sector salary hike of 600 leva and road projects worth billions of euros.

Earlier in the day, activists from We Continue the Change placed a piggy bank figure outside the National Assembly to symbolize what they consider a cash-grab. Radostin Vassilev from MECH criticized the government for raising contributions without offering higher benefits in return. Vazrazhdane MP Petar Petrov pointed out that self-insured individuals will bear some of the heaviest consequences of the reform.

Representatives of the BSP defended the changes. Dragomir Stoynev argued that deficits in the social security system must be covered, either through taxes or contributions, and said the government prefers contributions to ensure what he described as a fairer system. Yordan Tsonev from DPS New Beginning, the party linked to Delyan Peevski, downplayed the significance of the 2 percent increase, saying it was neither excessive nor unusual compared with other pension systems.

MPs also approved the 2026 NHIF budget at first reading. It totals more than 5.57 billion euros, roughly 15 percent higher than this year’s plan, while keeping the health insurance rate unchanged.

The next step for parliament is the debate on the 2026 state budget, which envisages higher external borrowing, pay raises for civil servants and several measures that businesses warn will further increase the pressure on employers.