From today, large-scale changes in social and health insurance in Bulgaria, set out in the newly adopted Budget 2026, come into effect.
The reform affects both the public sector and business, introducing new minimum and maximum insurance limits and changing the long-standing financing model of the state administration.
Historic reform for civil servants
For the first time in the country's modern economic history, civil servants and those working in the judicial system are starting to cover part of their own insurance contributions. Until now, their obligations were entirely covered by the state budget.
According to the new rules published by bTV Novinite (btvnovinite.bg/bulgaria/darzhavnite-sluzhiteli-i-magistratite-plashtat-osigurovki-ot-1-avgust-no-netnite-im-dohodi-se-zapazvat.html), the transition will be gradual:
- From August 1, 2026, the insurance burden is distributed in a ratio of 80:20 (80% at the expense of the state and 20% at the expense of the employee).
- From January 1, 2027, the model will be fully aligned with the private sector in a ratio of 60:40.
The Ministry of Finance explicitly emphasizes that gross salaries are compensated, so that the real net income of civil servants will not decrease. The “Security“ sector (Ministry of Interior and Ministry of Defense) remains outside this change until the beginning of 2027.
A jump in insurance thresholds and income ceilings
The second key change affects the maximum insurance income for all workers in the country. It increases dramatically from 2,111.64 euros to 2,300 euros, which will lead to higher deductions for people with high salaries and their employers.
In addition, the scheme of differentiated minimum insurance thresholds by profession and economic activity is being restored today with an increase of about 5%, Nova TV reports (nova.bg/news/view/2026/08/01/546225/поменените-в-закона-за-бюджета-на-джаржното-обществено-осигуриване-влизат-в-сил-от-днес/). The lowest threshold is aligned with the minimum wage, which is fixed at 620.20 euros, and for self-employed individuals the minimum base is also raised to 620.20 euros.
The measures are expected to reduce the deficit in state social security and bring greater fairness between employees in the private and public sectors.