Following the adoption of the State Budget Law of the Republic of Bulgaria for 2026 in August of that year, several amendments to social security and social insurance law were enacted, effective August 1, 2026. These amendments affect employers and employees, the self-employed, and civil servants.
The most significant changes include an increase in the maximum monthly contribution ceiling, adjustments to the minimum contribution ceilings, a new social insurance scheme for civil servants, and changes to pension law.
At the same time, some fundamental regulations remain unchanged, including the income tax rate and contributions to health and pension insurance.
1. The Maximum Monthly Contribution Ceiling for Social Security Increases
One of the most significant changes is the increase in the maximum monthly contribution ceiling for social security.
Until July 31, 2026, the maximum contribution ceiling is € 2,111.64. From August 1, 2026, it will increase to € 2,300.
This means that for all individuals whose gross income exceeds €2,300 per month, social security contributions will now be calculated based on the new maximum income threshold. This will reduce employees' net income.
It is important to note that the increase in the maximum contribution assessment ceiling for social security will not result in an increase in income tax. It simply leads to a higher assessment base for calculating social security and health insurance contributions.
2. Minimum contribution thresholds for insurance are changing
From August 1, 2026, the minimum contribution thresholds for insurance in the most important economic sectors and occupational groups will also be adjusted. The increase will not be the same for all sectors. For some professions, the increase will be minimal, while for others the minimum insurance income will rise significantly. Administrative and information technology activities are particularly affected. Here, the minimum insurance income for managing directors of companies has been significantly increased to € 936.
3. Self-Employed Individuals
From August 1, 2026, the minimum insurance income for the self-employed will be linked to the minimum wage. This means that freelancers, registered farmers, sole proprietors, and other self-insured individuals must obtain insurance with a minimum insurance income of € 620.20.
4. Civil Servants Now Contribute to Their Social Security Contributions
One of the most important reforms is the gradual introduction of a contribution from civil servants to the financing of mandatory social security contributions. Previously, social security contributions for this professional group were fully covered by the state budget. From August 1, 2026, a transitional mechanism will come into effect, allowing civil servants to contribute their own social security contributions. The contribution rate will be gradually increased until the general arrangement for all employees is reached.
The aim of this change is the gradual harmonization of the social security systems of the public and private sectors.
5. The minimum pension for social security and old-age provision was increased to € 347.51 on July 1, 2026.
6. The minimum daily unemployment benefit remains unchanged at €9.21, and the maximum at €54.78.
7. Changes were made to the Occupational Accidents and Diseases Fund for various sectors of the economy.
For example, the contribution to the Occupational Accidents and Diseases Fund for administrative and clerical work was increased from 0.4% to 0.5%.
8. Despite numerous changes, some basic rules remain unchanged:
- Income tax – 10%;
- Social security and health insurance contributions for employees and employers;
- The duration of state benefits remains the same:
- 18 calendar months – for sickness benefits;
- 24 calendar months – for unemployment benefits;
- 24 calendar months – for maternity and childbirth benefits;
- 24 calendar months – for benefits for reduced earning capacity due to pregnancy, breastfeeding, or advanced stages of assisted reproductive technology (ART) treatment. The changes effective August 1, 2026, therefore focus primarily on social security benefits.
Of greatest practical importance are the increase in the maximum amount of social security benefits, the adjustment of the minimum contribution thresholds for social security, and the new social security model for civil servants.