Pension insurance contributions in Bulgaria will not increase in 2026, while pensions themselves are set to rise by between seven and eight percent from 1 July, under the Swiss indexation formula. The measures form part of the revised 2026 State Social Security (SSS) budget approved at first reading by the parliamentary budget committee.
The decision signals a commitment to predictable pension growth without raising the financial burden on workers and employers. Labour and Social Policy Minister Borislav Gutsanov said the approach aims to preserve stability for more than two million pensioners who rely on regular indexation.
Under the new framework, all pensions will be updated according to the so-called Swiss rule, which links increases to a combination of inflation and income growth. Gutsanov stressed that no rise in insurance contributions or new taxes is planned for 2026.
From 1 January 2026, the national minimum wage will increase to €620.20. The minimum insurance threshold for self-employed workers will match this level, a change the government says will help strengthen the social insurance base.
At the same time, the maximum insurable income will be set at €2300. This represents a slight reduction compared with an earlier draft of the budget, according to National Social Security Institute governor Vesela Karaivanova-Nacheva, who presented the figures during the committee hearing.
Unemployment benefits will remain unchanged. The minimum daily benefit will stay at €9.21, while the maximum daily payment will remain €54.78. Officials argued that maintaining these levels preserves budget balance while avoiding abrupt policy shifts.
Maternity and childbirth benefits will also largely remain stable. The total period for pregnancy and childbirth payments stays at 410 days, continuing one of the longest maternity leave schemes in the European Union.
However, families will see a noticeable increase in support for raising young children. From January 2026, the monthly benefit for raising a child up to the age of two will rise from €398.81 to €460.17.
Another significant change affects mothers who return to work before the end of their maternity leave. They will now retain 75 percent of the benefit, up from the current 50 percent. Minister Gutsanov described the measure as a key social commitment now fulfilled.
On pensions, the minimum pension will increase to €346.87, reflecting the overall indexation. In contrast, the maximum pension will remain frozen at €1738.40, a decision that sparked criticism from trade unions and opposition lawmakers.
Asya Goneva of the Confederation of Independent Trade Unions of Bulgaria (CITUB) warned that freezing the pension cap discourages higher-income earners from declaring and insuring their full wages. She argued that raising the ceiling would cost around €9 million and allow approximately 6200 retirees to receive pensions matching their full contributions.
Currently, 8875 pensioners receive the maximum pension of 3400 BGN. Critics say maintaining the cap undermines fairness within the pension system and weakens trust in long-term contributions.
Despite the criticism, the government highlighted the rare consensus achieved around the SSS budget. Gutsanov noted that the proposal was unanimously approved by both the NSSI Supervisory Board and the National Council for Tripartite Cooperation, which brings together unions, employers and the state.
“This balance shows that social dialogue is working,” the minister said, adding that compromise was necessary in a challenging fiscal environment.
Looking ahead, the Ministry of Labour and Social Policy plans to submit detailed proposals for the long-term stabilisation of the pension system. Parliament has already instructed several institutions to prepare a comprehensive roadmap.
Gutsanov also underlined the importance of updating minimum insurance thresholds as a tool to improve revenue collection and combat the shadow economy. Undeclared work, he said, accounts for roughly 25 percent of Bulgaria’s labour market.
By keeping contributions steady while adjusting benefits, the government says it aims to combine social protection with fiscal discipline, as Bulgaria prepares its public finances for the years ahead.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members