Sofia, Bulgaria – The purchasing power of food vouchers in Bulgaria has plummeted by nearly 45% over the past five years, according to an analysis by the Association of Food Voucher Operators.
The primary factor behind the decline is soaring food price inflation, which has eroded their real value, leaving many employees struggling to afford essential groceries.
Despite calls for urgent adjustments, the National Assembly recently voted to maintain the maximum tax-free monthly voucher amount at 200 BGN (€100), rejecting proposals to raise it to 300 BGN (€150).
This decision keeps the total annual quota under the Corporate Income Tax Act at 1.6 billion BGN, leaving employers with the discretion to determine the voucher amounts they provide.
Currently, more than 800,000 employees in Bulgaria receive food vouchers, with the industry average ranging between 150-160 BGN per month.
Sharp Decline in Purchasing Power
Data from Eurostat indicates that, when adjusted for average food inflation, the real purchasing power of food vouchers has shrunk by 53% over five years and 38% over three years.
Without factoring in additional inflation in early 2025, the current 200 BGN voucher is equivalent to just 131 BGN in 2019 and 146 BGN in 2022. Experts estimate that to maintain the 2022 purchasing power, vouchers should be at least 275 BGN in 2025.
Food Prices Continue to Surge
Food prices in Bulgaria have seen a dramatic increase, further diminishing the effectiveness of vouchers. According to data based on the European Classification of Individual Consumption, price hikes over the past five years include:
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Bread: +18.9%
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Dairy and eggs: +41.7%
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Meat: +41.1%
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Vegetables: +43.5%
Additional price increases since early 2025 have put even more strain on household budgets. In just a few months, the cost of bread has surged another 20%, cucumbers by 13.7%, and cooking oil by 5.4%.
Employees Struggle to Cope
A recent Edenred Food Barometer 2024 survey, conducted among 6,800 employees, reveals the financial strain food price inflation has caused. The study found that:
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Two-thirds of employees use up their food vouchers by the end of each month.
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If the amount were raised, 93% said they would buy more food for home consumption.
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85% believe a voucher increase would allow them to improve their meal quality.
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54% stated that a higher voucher amount would enable them to afford lunch at work daily without financial stress.
As inflation continues to push up costs, 72% of respondents expect further price hikes, with eating out identified as the first expense they would cut back on.
Additionally, over half of Bulgarian households report that food accounts for more than a third of their monthly budget, an expense they are reluctant to reduce.
Calls for Policy Reform
The Association of Food Voucher Operators argues that increasing the tax-free voucher amount would not only help employees but also boost government revenues by increasing VAT collection through higher domestic food consumption.
Since food vouchers can only be used within Bulgaria, they also provide direct financial support to local businesses.
Despite these arguments, the government has opted to maintain the status quo, leaving many employees facing shrinking purchasing power and rising financial pressure when buying basic food products.
With inflation showing no signs of slowing down, calls for policy adjustments are expected to grow louder in the coming months.