What employers, employees and self-insured persons need to know
As of 1 January 2026, significant changes enter into force in Bulgaria regarding the minimum wage and the application of social security rules in the context of the country’s transition to the euro.
With the promulgation of the so-called Extended Budget Act, published in the State Gazette No. 113 of 23.12.2025, the main financial and social security parameters applicable from the beginning of 2026 are regulated until the adoption of:
- the State Social Security Budget Act, and
- the National Health Insurance Fund Budget Act.
During this transitional period — for up to three months — most existing rules remain unchanged, with the key exception being the increase of the national minimum wage, now expressed in euro.
What is the Minimum Wage
The minimum wage represents the statutory minimum amount of basic salary applicable to employment under:
- full-time working hours;
- 8 hours per day;
- 5 working days per week.
It is uniform throughout the entire country and constitutes basic remuneration only.
All additional payments — including remuneration for length of service and professional experience (“seniority bonus”) — are added on top of the basic salary.
It is important to emphasize that additional payments cannot compensate for a basic salary set below the minimum wage.
Can the basic salary be below the minimum wage?
The answer is unequivocal: no.
The basic salary stipulated in an employment contract must not be lower than the statutory minimum wage, regardless of:
- the employee’s seniority percentage; or
- whether the total gross salary would exceed the minimum wage after supplements.
While gross remuneration may differ between employees, the basic salary itself must always meet or exceed the minimum wage threshold.
Minimum Wage as of 01.01.2026
As of 1 January 2026, the national minimum wage has been increased:
- from BGN 1,077 to BGN 1,213
- increase: 12.63%
- after conversion: EUR 620.20
➡ This is the new mandatory minimum basic salary for full-time employment.
Difference between Minimum Wage and Minimum Insurable Income
In practice, these two concepts are often confused, although they serve different legal purposes.
Minimum Wage:
- applies under labour law;
- determines the lowest permissible basic salary.
Minimum Insurable Income (MII):
- applies under social security law;
- represents the minimum income base on which social security contributions are due;
- depends on the employer’s economic activity and the employee’s qualification group.
Minimum Insurable Income as of 01.01.2026
The minimum insurable income thresholds remain frozen at their levels as of 31.12.2025.
After conversion into euro using standard mathematical rounding:
- Minimum Insurable Income = EUR 550.66
For many economic activities, this amount applies across all qualification columns.
Important practical rule
Social security contributions are calculated on the higher of:
- the agreed remuneration; or
- the minimum insurable income.
Since the minimum wage (EUR 620.20) exceeds the frozen minimum insurable income (EUR 550.66), social security contributions in practice are calculated on EUR 620.20.
Self-insured persons in 2026
The following amounts remain applicable:
- minimum insurable income: EUR 550.66
- maximum insurable income: EUR 2,111.64
These thresholds apply equally to:
- self-insured persons;
- registered farmers;
- tobacco producers.
Health insurance contributions
Unpaid leave
For periods of unpaid leave, health insurance contributions are due on:
- 50% of the minimum insurable income for self-insured persons
- contribution base: EUR 275.33
Sick leave, maternity and childcare
Health insurance contributions are paid by the employer on:
- EUR 550.66
Unemployed persons
Monthly health insurance contribution:
- EUR 22.03
Social security contribution rates
No changes apply to:
- contribution rates for the Pension Fund;
- General Sickness and Maternity Fund;
- Unemployment Fund;
- Health Insurance Fund;
- Occupational Accident and Disease Fund (rates between 0.4% and 1.1%);
- zero contribution rate for the Guaranteed Receivables Fund.
Food vouchers
The non-taxable monthly amount remains:
- EUR 102.26 per employee.
Unpaid leave and insurable service
Up to 30 working days of unpaid leave per calendar year are recognized as insurable service.
Benefits and sick leave in 2026
The existing rules remain unchanged:
- temporary incapacity for work — calculation based on 18 months;
- unemployment benefits — 24 months;
- maternity and childbirth — 24 months.
Maternity:
- paid maternity leave period: 410 days;
- second year maternity benefit: EUR 398.81.
Unemployment benefits:
- entitlement requires at least 12 months of unemployment insurance within the last 18 months;
- minimum daily benefit: EUR 9.20;
- maximum daily benefit: EUR 54.78.
Conclusion
As of 01.01.2026, Bulgaria’s social security system operates under a transitional regime in which:
- the minimum wage has increased and is denominated in euro;
- minimum insurable income thresholds remain temporarily frozen;
- contributions are effectively calculated on the higher amount — the minimum wage;
- contribution rates and benefit rules remain unchanged.
These rules are essential for accurate payroll planning and cost forecasting for 2026, both for employers and for self-insured persons.
If you require reliable guidance on payroll, social security contributions or employment-related matters in 2026, the team of Accounting Firm KONTADOR is available to support you with professional advice and practical payroll solutions.