Balgarianovinite.com In a statement released on Friday, the Confederation of Employers and Industrialists in Bulgaria (KRIB) expressed its strong opposition to the initial estimates for the 2027 State Budget, according to which the maximum income subject to social security contributions is set to rise from EUR 2,300 to 2,400. KRIB said that such a measure comes just weeks after the increase already approved with effect from August 1, 2026, and once again shifts the cost of the structural deficit in social security and the state budget onto the private sector.
KRIB urged the government to withdraw the provision for raising the maximum social security income threshold in the 2027 budget estimates and to freeze it until a sustainable programme is presented to reduce the budget and social security deficits through expenditure reforms and by ensuring a stable and competitive environment for energy-intensive, software and high-tech industrial companies, where the majority of those earning above the maximum social security income are concentrated.
The 2026 Budget already increased the maximum social security income by nearly 9% at a time when businesses had already finalized their annual budgets, with a particularly severe impact on international companies, where budgets go through several levels of approval; consequently, unplanned changes deal a blow to Bulgaria’s reputation and that of local managers, the organization said.
According to figures from the National Social Security Institute, around 310,000 people were already paying contributions at the previous ceiling prior to the latest increase, and it was precisely these people who bore more than just the brunt of the burden. These people are primarily employed in sectors with the highest added value, such as software development, robotics, high-tech industries like the automotive and pharmaceutical sectors, the extraction and exploration of mineral resources, metallurgy, and technology-based entrepreneurship. These are also the industries that account for a significant proportion of the growth in Bulgarian exports, acting as a potential driver of growth and, consequently, a means of alleviating inflationary pressure, KRIB pointed out.
KRIB noted that these are also industries that are particularly vulnerable to the current problems in the energy market both in Bulgaria and across Europe, as well as to the introduction of AI tools with new capabilities. Energy-intensive industry accounts for 40% of industrial exports and is under serious pressure from high energy prices. The additional strain caused by the increase in the maximum insurable earnings would lead to redundancies and potentially a review of plans to relocate production capacity to Asia, North Africa or the US.
Bulgarian companies that develop software or use robotics for industrial production are already integrating AI solutions amidst a climate of uncertainty and intense competition from the US and China. In this context, high-tech companies in Bulgaria need a stable and predictable environment, as well as competitive conditions for labour and investment, so that they can transition naturally and in line with market forces to the intensive use of AI without any net job losses, KRIB said.
On Thursday, the Ministry of Finance published its guidelines that forecast for the maximum social security income to be EUR 2,400 in 2027, EUR 2,500 in 2028, and EUR 2,600 in 2029.
Employers Oppose Rise of Maximum Income Subject to Social Security Contributions 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-08-28 12:28:00
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