Bulgaria's National Assembly has approved 2026 budget legislation that raises social insurance income thresholds and, from 1 August 2026, starts phasing in personal social insurance and health contributions for civil servants and judiciary staff, moving from an 80:20 to the standard 60:40 employer-employee ratio by 1 January 2027.
Bulgaria’s National Assembly gave final approval to the State Social Security Budget Bill and the National Health Insurance Fund Budget Bill, followed by the State Budget Bill on 22 July 2026.
All three bills were tabled on 1 July, and adopted on 24 July, introducing personal social insurance contributions for civil servants along with higher social insurance income thresholds, both taking effect on 1 August 2026. Until adoption, an interim act had kept public revenue and spending running, so the new budgets apply only for the rest of 2026.
Phased reform of civil servant insurance contributions
According to this legislation, starting 1 August 2026, Bulgaria will reform the social security and health insurance contributions for civil servants and judiciary employees by requiring them to pay a portion of their own contributions under a transitional 80:20 employer-employee ratio.
To protect these workers from a reduction in take-home pay, their basic salaries will be recalculated so that their net income remains equal to or higher than what they earned on 31 July 2026. This phased approach will culminate on 1 January 2027, when their contribution ratio will fully align with the standard rates (such as the generally applicable 60:40 ratio) paid by all other insured individuals.
Furthermore, the government plans to develop and apply a similar personal contribution mechanism for other specialised public sector workers, such as defence and internal affairs employees, beginning in 2027.
Social insurance thresholds increase
A central feature of this legislation is the adjustment of social insurance income thresholds starting 1 August 2026. From this date, the minimum monthly social insurance income for self-insured persons will increase to EUR 620.20, directly aligning with the new statutory minimum wage, while the maximum monthly social insurance income for all insured persons will rise to EUR 2,300.00.
Alongside these general adjustments, the minimum monthly insurance income thresholds based on specific economic activities and occupational groups will also be updated in the second half of the year, with managerial categories experiencing the most substantial absolute increases.
Furthermore, a significant policy shift will require civil servants and judiciary employees to begin a phased transition toward paying personal social insurance contributions starting 1 August 2026.
Mandatory health insurance contribution rates and ratios
As per this legislation, the 2026 Budget Act of the Bulgarian National Health Insurance Fund (NHIF), which totals approximately EUR 5.25 billion, confirms the mandatory health insurance contribution rate at 8%. This contribution maintains the standard 60:40 payment ratio between employers and insured employees.
Starting 1 August 2026, the contribution ratio for civil servants and certain groups under the Social Insurance Code will shift to 80:20, with a planned adjustment to their overall compensation to prevent any reduction in their net income.
