Following the promulgation of the 2026 State Social Security Budget Act in State Gazette No. 68 of 28 July 2026, several changes will enter into force on 1 August 2026, directly affecting employers, employees, and self-employed individuals in Bulgaria. These provisions will apply until December 31, 2026 and require a timely review of payroll, remuneration, and social security obligations.
The key changes include:
• The minimum insurable income thresholds by economic activity and occupational qualification group, in accordance with the National Classification of Occupations and Positions, increase to EUR 620.20. Detailed information is available in Appendix No. 1A to the 2026 State Social Security Budget Act.
• The minimum insurable income for self-employed individuals increases from EUR 550.66 to EUR 620.20.
• The maximum insurable income increases from EUR 2,111.64 to EUR 2,300.00.
• The contribution rates for the Occupational Accident and Occupational Disease Fund have been amended for seven economic sectors.
• A new 80:20 distribution of social security contributions between employer and employee is introduced for civil servants.
• The minimum old-age pension increases from EUR 322.37 to EUR 347.51.
• The childcare benefit for raising a child up to the age of two remains unchanged at EUR 398.81 per month.
• The maximum pension amount remains unchanged at EUR 1,738.40.
These changes are of significant importance for employers in Bulgaria, as they require a review of employee remuneration and the application of the new minimum insurable income thresholds where applicable. Employers should also ensure compliance with all statutory deadlines for implementing the changes.
The increase in the minimum insurable income thresholds will lead to higher employment costs for employers, while at the same time having a positive impact on the income of the affected employees. The increase in the maximum insurable income will also have financial implications.
Employees whose remuneration exceeds the previous maximum insurable income threshold will pay higher personal social security contributions, resulting in a slight decrease in their net salary. At the same time, employers will incur higher social security costs for these employees, as employer contributions will also be calculated on the increased maximum insurable income.
A timely review of remuneration, insurable income thresholds, and payroll processes will help employers implement the new requirements smoothly, ensure compliance with Bulgarian legislation, and avoid unnecessary administrative issues.
Eurofast’s Take
Eurofast has extensive experience in labor and social security legislation, payroll processing, and HR administration. Our specialists can assist with assessing the impact of the legislative changes, performing the necessary payroll recalculations, updating remuneration and social security data, and providing practical advice tailored to the specific needs of your business.For any further information or personalized assistance, please contact us at [email protected]