During a recent budget committee hearing, officials confirmed that minimum insurance thresholds will also rise for the first time in 10 years, with some sectors facing increases exceeding 70%.
Status of Social Security Thresholds and Regional Variations
Vesela Karaivanova-Nacheva noted that the proportion of workers insured at these minimums varies significantly by region. Employees in Vidin, Razgrad, Silistra, Vratsa, and Montana are insured at the highest rates, while those in Blagoevgrad, Varna, and Burgas remain closest to the minimum levels. Officials have not determined whether these discrepancies result from seasonal employment patterns or other localized economic factors.
Did You Know?
The maximum social security income was originally designed to be 10 times the minimum wage; however, that ratio has since decreased to 3.8 times, according to Social Minister Natalia Efremova.
Legislative Debates and Business Concerns
The proposed changes faced opposition during the committee hearing. Martin Dimitrov of Democratic Bulgaria (DB) argued that the timeline is too short for businesses to adapt and proposed maintaining current levels for the remainder of the year. Desislava Taneva of GERB supported this, highlighting that the insurance burden in the food sector would rise by 50%, which she described as an unsustainable increase. Conversely, Asen Vassilev of “We Continue the Change” pointed to a recent rise in the number of insured individuals—from 2,877,000 to 2,930,000—and a decrease in workers receiving only the minimum wage as evidence of positive trends.
Proposed Adjustments to Benefits and Pensions
The legislative committee reviewed multiple proposals regarding social benefits, including maternity leave and unemployment compensation. Currently, the second year of maternity leave is frozen at 398.81 euros. Various parties have submitted competing proposals to reform these payments: “We Continue the Change” suggests aligning the benefit with the minimum wage of 620.20 euros, while the Movement for Rights and Freedoms (DPS) proposes 80% of the minimum wage.
Regarding unemployment, the government project maintains the minimum daily benefit at 9.21 euros. Opposition parties have proposed higher rates, with “Vazrazhdane” suggesting an increase to 20 euros per day. Social Minister Natalia Efremova defended the current government stance, explaining that many part-time workers currently receive double the benefit they would be entitled to under a strictly proportional system, and warned that proposals from the opposition lack clear funding sources.
Frequently Asked Questions
What is the new maximum social security income?
Starting August 1, the maximum social security income will be set at 2,300 euros.
Why are the minimum insurance thresholds being increased?
According to the Social Minister, these thresholds serve as a mechanism to combat the shadow economy and the practice of paying employees “in envelopes” while officially reporting only the minimum wage.
What happens to self-employed individuals?
As part of the adjustments, self-insured individuals will be required to pay insurance on a base of 620.20 euros from August 1.
How will these changes to insurance thresholds affect your local business sector?
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