Business is preparing a package of proposals to save a large part of the costs in the 2026 Budget. This was announced in “120 Minutes” by the Chairman of the Board of Directors of the Bulgarian Industrial Association Dobri Mitrev.
According to him, they are worth about 1.5 billion euros and will compensate for the elimination of the “red lines“ in the budget for next year, with which employers do not agree. He gave an example of the elimination of automaticity in the increase of salaries in certain sectors such as defense and security.
„If only these mechanisms were eliminated, costs in the amount of over 450 million euros should be saved for the next year. The release of vacant positions - half of them - will also lead to cost savings of 140 million euros. So far - half a billion euros. This way we will compensate for the elimination of the increase by 2 percentage points in insurance contributions for the „Pensions“ fund, the compensation of the maximum insured income, the double increase in the „dividend“ tax and the cancellation of SUPTO“, Mitrev explained.
The unions are of the opinion that salaries in the public sector are not growing fairly, because some receive 50%, and others - 5%. The President of the Confederation of Bulgarian Trade Unions Plamen Dimitrov explained that this has increased the tension among civil servants who have a higher education, but receive salaries close to the minimum wage.
“Any commitment and automatism lead to such tension and sooner or later it will be canceled. I am pessimistic that it will happen now. In the “continuation of the match“ we cannot make such a decision, as far as I hear from the ruling coalition. The large numbers that weigh on the budget cannot be removed abruptly. I don't believe in making a radically new budget“, explained Dimitrov.
The BIA explained that it is becoming increasingly difficult for businesses to increase the salaries of their employees, because their costs are growing more and more with no increase in labor productivity, industry and exports. “Do you think it is fair for the head of an institution to receive a bonus of 120 thousand leva per year? How much are these minimum salaries? We should sit down on Tuesday and consider them measure by measure“, said Mitrev.
He explained that the Ministry of Finance has set a goal of gradually increasing the social security contribution in 2027 and 2028, and the time was not chosen by chance – then it is planned to begin a reform in the pension reform. Mitrev was categorical that they are currently against an increase of even 1 percentage point.
Plamen Dimitrov indicated that the Confederation of Bulgarian Industrialists and Trade Unions will not participate in the planned protest for Monday, December 1, because they do not participate in political demonstrations.
Mitrev indicated that the Bulgarian Industrialists and Trade Unions are a neutral political organization and cannot participate in an event organized by a political force. He added, however, that they are discussing a demonstration if their demands are not met, because “there is such pressure from the members of the chamber“.