Bulgaria's 2026 Social Insurance Budget Gains Conditional Support

Most Bulgarian social partners gave conditional backing to the 2026 State Social Insurance (DOO) budget, while the Association of Industrial Capital (AICB) abstained and called for deeper pension reform. The draft law proposes a 7.8% increase in pensions and raises the maximum insured income to €2,300 from 1 August 2026.

The budget projects a deficit of 5.7% of GDP, aiming to cut it to 3% by 2028, with revenues of €49.6 billion against expenditures of €56.8 billion. Public debt is forecast to reach 30.1% of GDP by year‑end 2026. Revenue measures include higher excise taxes on tobacco, licensing fees for gambling affiliates, increased vignette and toll charges, and stricter control of the shadow economy. On the spending side, a one‑off 5% wage rise for public‑sector staff is planned, along with a 10% cut in personnel costs in parts of the administration starting September 2026.

AICB opposed the plan, demanding the repeal of the minimum pension and a revision of the so‑called “Swiss rule.” Employers also resisted compulsory contributions from civil servants unless they receive a second employment contract and private‑business rights.