On 31 July 2026, the Bulgarian Parliament adopted the State Budget for 2026, introducing several measures that may affect employers operating in Bulgaria. Key changes include an increase in the maximum insurance base, amendments to the social security contribution structure for public sector employees, and the continuation of the current minimum wage framework until a new determination mechanism is implemented.
These developments may have implications for payroll administration, employment costs, workforce planning, and compliance processes. Organizations should assess the potential impact of the new measures and prepare for the upcoming changes taking effect from 1 August 2026.
What’s changing?
The 2026 State Budget introduces:
Higher maximum insurance base
Starting 1 August 2026, the maximum insurance base will increase to EUR 2,300 per month.
What does this mean for employers?
Increase in the minimum insurance base for self-insured individuals
The minimum insurance base for self-insured individuals/freelancers increases from EUR 550.66 to EUR 620.20 per month.
Social security changes for public sector employees
From 1 August 2026, public sector employees will gradually begin contributing to their own social security costs under an 80/20 employer-employee split, with a further adjustment planned from 2027.
The bigger picture
The adopted budget includes:
Organizations should consider the potential impact of these developments on:
What should organizations do?
Budget 2026 brings more than fiscal changes. It introduces developments that may affect employment costs, payroll administration, and workforce management.
Organizations should assess the impact of the new measures and ensure that payroll processes, workforce planning, and budgeting assumptions are aligned with the upcoming changes.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Mina Kapsazova
Director
Ekaterina Arnaudova
Senior Manager
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