The government, trade unions and employers failed to reach consensus on the draft budgets of the National Health Insurance Fund, the state public insurance system and the state budget for 2027. The debate at the National Council for Tripartite Cooperation lasted about four hours.
The draft budget envisages a deficit of 3.5% of gross domestic product, or nearly €4.9 billion, economic growth of 2.5% and inflation of 4%. It provides for a minimum wage of €660, a 5% increase in public-sector salaries and a 7.5% rise in teachers’ wages. New government debt is planned to amount to €8.6 billion.
Among the most contentious measures are raising the maximum insurable income to €2,400 and introducing a one-off 33% tax on excess profits in certain sectors. Employers opposed both proposals. The Bulgarian Industrial Capital Association supported halting the automatic increase in public-sector salaries, administrative reform and investment incentives, but rejected the excess-profits tax.
Trade unions are insisting on stronger income growth. The Confederation of Independent Trade Unions in Bulgaria called for the increase in public-sector salaries to be 10%, rather than 5%, and for the minimum wage to reach €690. „We reaffirm our demand for a higher minimum wage. We continue to insist that €690 is the right figure,“ said Asya Goneva of CITUB.
Changes to Benefits and Pensions
The draft state public insurance budget provides for the monthly childcare benefit during the child’s second year to increase from €398 to €450. If a parent returns to work earlier, the share of the benefit for the second year and of the high-rate maternity benefit is to rise from 50% to 75%.
From July 1, 2027, all pensions granted by the end of 2026 are expected to be adjusted under the Swiss rule by nearly 8%. The measure will affect more than 2 million pensioners. The maximum pension is expected to reach approximately €1,875, while the average pension is expected to be €587.70.
Minister of Labour and Social Policy Natalia Efremova said that the priority was to ensure that vulnerable groups did not bear the burden of the financial situation. The draft also provides for higher family benefits, including for children with disabilities, as well as an increase in the income threshold for access to some social payments.
Podkrepa Confederation supported the draft budget of the National Health Insurance Fund and the updating of social security benefits, but opposed the lack of a link between social security contributions and the amount of social security entitlements. The organization proposed that the minimum pension be equal to the poverty line for 2027, calculated at €443.
Deputy Prime Minister and Minister of Finance Galab Donev said that the drafts had been discussed by the permanent committees of the National Council for Tripartite Cooperation, but the support of all social partners had not been secured. Following the consultations, the government is to decide which proposals should be reflected before the draft budget laws are submitted to the National Assembly.
Sources: nova.bg