The government approved the draft Law on the 2026 State Budget, as well as the Updated Medium-Term Budget Forecast for the 2026–2028 period. In connection with the introduction of the euro on January 1, 2026, all figures have been prepared in euros, using the official exchange rate of 1.95583 BGN per 1 euro. The macroeconomic forecast envisages economic growth of 2.7% in 2026 and an average annual inflation of 3.5% in 2026, 2.9% in 2027, and 2.5% in 2028. The government debt is expected to reach EUR 37.6 billion (31.3% of GDP) in 2026.
From January 1, the minimum monthly salary is set to increase from EUR 550.67 to EUR 620.20. On July 1, 2026, pensions will be adjusted according to the so-called “Swiss rule” by 7.6%. The pension fund contribution will increase by 2 percentage points. The dividend tax is expected to increase from 5% to 10%. The minimum insurable income for self-employed persons will grow to EUR 620.20, while the maximum insurable income for all employees will rise to EUR 2,352.
Edited by Miglena IvanovaPublished and translated by Kostadin Atanasov
Photo: BTA
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