Trade Unions, Employers Back Draft 2027 Public Social Insurance Budget in Principle, Bulgarian Industrial Capital Association Abstains

Trade union and employer organizations broadly supported the draft 2027 Public Social Insurance budget, with the exception of the Bulgarian Industrial Capital Association (BICA), which abstained from expressing support. Deputy Prime Minister and Finance Minister Galab Donev announced the positions following discussions on the draft budget at an extraordinary meeting of the National Council for Tripartite Cooperation on Thursday.
National Social Security Institute (NSSI) Governor Vesela Karaivanova outlined the main changes envisaged in the draft budget, including a pension increase of between 7% and 8% under the so-called Swiss rule and higher minimum and maximum unemployment benefits.
She also noted the planned increases in the minimum and maximum social security income thresholds, which are expected to generate an additional EUR 989 million in social security contribution revenue in 2027. The ratio of employer to employee contributions will remain unchanged from 2026.
The monthly childcare allowance for parents looking after children under the age of two will increase from EUR 398.81 to EUR 450. Mothers returning to work before the end of their child’s second year will receive 75% of the allowance, up from the current 50%.
Labour and Social Policy Minister Nataliya Efremova said her Ministry supported the draft Public Social Insurance budget for 2027.
She said the proposed social measures were aimed at providing better protection for insured persons and pensioners, guaranteeing their social rights and ensuring sufficient funding for the regular payment of pensions, sickness benefits, maternity benefits and unemployment benefits.
Trade Union Positions
The Confederation of Independent Trade Unions in Bulgaria (CITUB) supports the draft budget, union representative Asya Goneva said.
She noted that the proposal contained several positive measures, including higher minimum and maximum social security income thresholds and the allocation of sufficient funding for statutory expenditure, such as the annual adjustment of pensions.
CITUB also welcomed the planned increase in the maximum pension and the higher minimum and maximum unemployment benefits.
The Podkrepa Confederation of Labour supports the draft budget in principle but insists that its proposals be taken into account, Vice President Ioannis Parteniotis said.
The union called for a larger increase in personnel expenditure and stressed the importance of maintaining the principle that social security entitlements should reflect contributions paid.
Podkrepa supported the adjustment of employment-related pensions and the increase in the social old-age pension, among other measures. It also insisted that unemployment benefits should be proportional to individuals’ social security contributions.
Employer Organisations’ Positions
Bulgarian Industrial Capital Association (BICA) Executive Director Dobrin Ivanov said the association had abstained from supporting the draft budget.
He argued that all payments of a social assistance nature should be removed from the pension system. BICA supported reforms to the assessment of working capacity and the Medical Expert Evaluation Board, as well as maintaining existing social security contribution rates.
However, the association opposed increases in both the maximum and minimum social security income thresholds.
Ivanov also called for a review of the requirement for employers to cover the first two days of employees’ temporary incapacity for work.
Bulgarian Industrial Association (BIA) Vice President Maria Mincheva expressed support for the draft budget, subject to two reservations.
The first concerned the increase in the maximum social security income threshold, while the second related to the proposal to raise the allowance paid to mothers returning to work during the second year of maternity leave from 50% to 75%.
Bulgarian Chamber of Commerce and Industry (BCCI) Management Board Chair Tsvetan Simeonov said the organization supported the draft budget in principle but could not agree to the administrative determination of minimum social security income thresholds.
Confederation of Employers and Industrialists in Bulgaria (KRIB) Executive Director Boyan Mitrakiev said the organization supported the draft budget except for the proposed increase in the maximum social security income threshold.
He warned that the increase could negatively affect the IT sector and suggested that some companies might decide to leave Bulgaria as a result.

Trade Unions, Employers Back Draft 2027 Public Social Insurance Budget in Principle, Bulgarian Industrial Capital Association Abstains THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-11-12 04:34:00

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