The Law on the State Budget of the Republic of Bulgaria for 2026 was officially promulgated in issue 69 of the “State Gazette“, reports BGNES. The main financial document of the state enters into force after it was finally adopted by the National Assembly on July 24. The promulgation came about after the head of state Iliyana Yotova refused to veto it, stating that "returning the texts would cause even greater damage to the state's finances".
In the adopted framework, the revenues, expenditures, transfers and deficit in the budget are set at a threshold of 5.7%. The maximum amount of new state debt that can be assumed in 2026 is set at 10.1 billion euros. This amount also includes a loan of up to 3.261 billion euros under the European instrument “Security Measures for Europe“ (SAFE), aimed at strengthening the defense industry.
The final texts set a minimum size of the fiscal reserve as of December 31, 2026 of 2.6 billion euros. At the same time, the maximum size of the total government debt as of the end of this year cannot exceed 37.7 billion euros.
The minimum wage for the country remains at the level of 620 euros until the adoption of a new mechanism for its determination.
From August 1, 2026, new rules for remuneration in the public sector come into force. The individual basic monthly salaries of civil servants and employees in the judiciary are determined so that their net remuneration (reduced by mandatory social security contributions and tax) is not lower than that received as of July 31, 2026. At the same time, the automatic mechanism for determining salaries in the defense, the Ministry of Internal Affairs and the National Social Security Administration is frozen, and the salaries there remain indexed according to the so-called extension law.
From August 1, the income thresholds for social benefits for families are also changing. The average monthly income for receiving a one-time pregnancy allowance and for monthly child-rearing allowances up to one year old is 466 euros. For receiving full child benefits until the completion of secondary education (and a maximum of 20 years of age), the income threshold is 415 euros. For families with an average monthly income between 415.01 euros and 466 euros inclusive, the amount of support will be 80 percent of the full amount.
In parallel, tax breaks for parents for 2026 are also being determined. The amounts deducted from the annual tax bases are 3,067.75 euros for one minor child, 6,135.50 euros for two children and 9,203.25 euros for three or more children. For raising a child with disabilities, the reduction in the annual tax base is 6,135.50 euros.
The transitional texts also introduce adjustments to the Labor Code. For one day of work experience from January 1 of the following year, the time during which the employee worked his full statutory working hours for the day will be considered, and in the case of part-time work, the length of service will be calculated proportionally. One year of work experience will be recognized if 12 months are counted, and until December 31, 2026, the determination of the length of service and the rights associated with it will be carried out according to the current procedure.