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[BUSINESS] · Bulgaria · 11 sources

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Bulgaria faces higher maternity benefits, budget costs and inflation

The Bulgarian government is considering raising the maternity‑benefit rate for mothers who return to work early from the current 50% to around 75%, Labour and Social Policy Minister Nataliya Efrimova said. The proposal is part of a broader package aimed at supporting young families and addressing labor shortages.

Opposition leader and former finance minister Asen Vasilev warned that the 2026 state budget will force every Bulgarian, from newborns to pensioners, to pay roughly €400, of which about €300 is not clearly allocated. He criticised the lack of detailed spending breakdown and the projected increase in public debt.

Meanwhile, Bulgaria’s National Statistical Institute reported that annual inflation slowed to 5.4% in June, with a monthly deflation of 0.9%. Despite the slowdown, price pressures remain strong: services such as hotels, restaurants and accommodation have risen 20%‑30% over the past two and a half years, and many personal‑service sectors (hairdressers, repairs, training) have seen price hikes of around 20%. Average wages grew by about 13% in the first quarter of 2026, which the institute says helps offset the accumulated inflation of the previous three years.

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Asen Vasilev · Bulgarian Government · Nataliya Efrimova · National Statistical Institute

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