Bulgaria has introduced a series of changes to its social security contribution framework following the adoption of the 2026 State Social Security Budget. The new measures, which will take effect in August 2026, update contribution thresholds and introduce changes to the allocation of social security contributions for certain categories of employees.
The reform forms part of the country's broader efforts to modernise its social security system and ensure that contribution rules continue to reflect developments in the labour market while supporting the long-term sustainability of the public social insurance system.
Key developments
Among the most significant measures is the revision of the income thresholds used to calculate mandatory social security contributions. The changes affect both self-employed individuals and the maximum contribution base, resulting in adjustments to the contribution obligations applicable to certain taxpayers.
The legislation also introduces a new contribution-sharing mechanism for civil servants. Once the new rules become effective, public sector employees will contribute directly towards their social security obligations, replacing the previous system under which these contributions were fully financed by the State.
The mandatory health insurance contribution rate, however, remains unchanged.
Implications for employers
Businesses operating in Bulgaria will need to review their payroll processes and ensure that employment and payroll systems are updated to reflect the revised contribution thresholds and the new contribution allocation rules where applicable.
Depending on the workforce structure, the changes may also have an impact on employment costs and should therefore be considered as part of payroll compliance and workforce planning activities.
Looking ahead
The adoption of these measures represents another step in Bulgaria's ongoing efforts to strengthen its social security framework and adapt contribution rules to evolving economic and employment conditions. Companies with operations in Bulgaria should closely monitor the implementation of the new provisions and assess any practical implications for their compliance and payroll obligations.