The Cabinet freezes the minimum wage at 620.20 euros for the entire period 2026-2028. As of August 1, personal insurance contributions are being introduced for civil servants and the judiciary, but not for the Ministry of Interior and the Ministry of Defense. This is stated in a letter with instructions from Deputy Prime Minister Galab Donev, sent to the ministers for the preparation of the 2026 budget. The instructions also provide some basic parameters on which the budget forecast for the next two years will obviously be based, see "Sega".
The minimum wage is currently increasing every year according to a formula written in the Labor Code. According to the text, its amount for the next year is determined by September 1 of the current year as 50% of the average salary for the 12 months for which there is the latest data. However, this text will now apparently be suspended.
The government maintains its intention to increase the maximum social security income to 2,300 euros from August 1 and to keep it at the same level for the period 2027-2028.
From August 1, it is planned that civil servants under the Civil Servant Act and those employed under the Judiciary Act will gradually start paying personal social security contributions, with the ratio between the insurer and the insured being 80:20. This means that the step will be much bolder than the one proposed by the opposition, which is being discussed today in the tripartite group - there for this year the personal contribution was 2% of the total. However, this is possible because, unlike the opposition's project, the intention here is to compensate for personal insurance with a salary increase. This will be welcomed by civil servants because it will increase their insurance income, and this means higher pensions, maternity, sick leave, etc.
"We are working on an option to achieve equality without taking away rights and without reducing income. This is social justice in action", commented on this occasion Deputy Prime Minister Galab Donev at the beginning of the tripartite meeting, where the same issue will be discussed, but through the opposition's proposals. So far, the government has not officially announced its intentions.
It is striking that the introduction of personal contributions does not apply to the Ministry of Interior and the Ministry of Defense, which are in a separate state social security fund and the budget provides them with much higher insurance contributions.
The result in the specific amounts of insurance contributions will be the following:
– for the “Pensions” fund; the specified amounts for the insurance contribution for persons born before December 31, 1959 – 19.8% distributed between the employer and the employee – 15.8% and 4%;
– for the “Pensions” fund the specified amounts for the insurance contribution for persons born after December 31, 1959 are for persons who are also insured for additional mandatory pension insurance in a universal pension fund - 14.8% distributed between employer and employee - 11.8% and 3%;
– for the fund “General illness and maternity” – 3.5% distributed between employer and employee - 2.8% and 0.7%;
– for the fund “Unemployment” - 1% distributed between employer and employee - 0.8% and 0.2%;
– for the fund “Workplace accident and occupational disease” – the contribution is at the expense of the employer 0.7%.
The amount of the health insurance contribution will be divided in the same ratio, remaining at 8%, distributed between the employer and the employee - 6.4% and 1.6%.
The amount of the insurance contributions for additional mandatory pension insurance (universal pension funds) - 5% distributed between the employer and the employee - 4% and 1%.
From January 1, 2027, a gradual increase in the personal share will begin, until the ratios for all others are reached, the instructions say, without specifying these steps.
Regarding the compensation of salaries, the letter states that compensation of remuneration is envisaged for these categories of persons for 2026 and 2027, in order to preserve the achieved net income. It remains to be seen exactly how this will happen.
The known 10% reduction in staff salaries and wages also remains a commitment, but there are some additional details.
It should happen from September 1 for the last four months of the year and be applied year-round for the period 2027-2028. The reduction will apply to staff under employment and service legal relationships, with the exception of activities delegated by the state, the Ministry of Defense, the Security sector and medical institutions. This should happen through restructuring, because the achieved amounts of individual basic salaries are preserved.