The Radev government has decided to keep the minimum wage unchanged at €620.20 for the entire period from 2026 to 2028, according to instructions sent by Deputy Prime Minister and Finance Minister Galab Donev to cabinet members during the preparation of the 2026 budget, as reported by Sega and BGNES. The move effectively suspends the current Labor Code formula, which normally links minimum wage growth to 50% of the average salary based on available annual data, with the new level usually set by September 1 each year.
At the same time, the authorities plan to raise the maximum insurance income to €2,300 from August 1, with the ceiling then remaining unchanged through 2027 and 2028. The same date marks the beginning of a gradual introduction of personal social security contributions for employees under the Civil Servants Act and the Judiciary Act, with an 80:20 split between employer and employee. The change is framed as more ambitious than opposition proposals, which were being discussed in the tripartite format and envisaged only a 2% personal contribution this year.
Officials argue that the reform is designed to avoid reducing net income by offsetting contributions with salary increases, while also improving future pension and social security outcomes, including maternity, sickness, and unemployment benefits. However, the new system will not apply to personnel in the Interior Ministry or the Defense Ministry, which remain under separate state social security arrangements and receive higher budget-supported insurance coverage.
