Under the State Social Security Budget Act for 2026, Bulgaria's maximum monthly insurable income increased from EUR 2,111.64 to EUR 2,300, effective August 1, 2026.
Contribution rates have not changed. What's changed is the ceiling on the income they're calculated against — and to understand what that actually means, it helps to know how Bulgaria's system works.
Social security contributions in Bulgaria aren't calculated on someone's full salary. They're calculated on salary up to a cap, and any pay above that cap is simply excluded — no contributions are owed on it by either the employer or employee. So, for someone earning EUR 3,000 per month:
- Before (cap = EUR 2,111.64): Contributions were calculated on EUR 2,111.64. The remaining EUR 888.36 had no contributions taken from it at all.
- Now (cap = EUR 2,300): Contributions are calculated on EUR 2,300. Only the remaining EUR 700 falls outside the cap.
Nothing about the employee's salary changed, and the contribution rate didn't change either. What changed is where the cutoff sits.
Raising the cap means more of a higher earner’s salary is now subject to contributions. That’s why contributions increase for this group, even though the contribution rates themselves haven’t changed
Who's Affected
Any Bulgaria-based employee earning above EUR 2,300 per month. Employees below that threshold see no change at all — their full salary was already under the old cap, so there's nothing new to calculate.
What This Costs, Per Affected Employee/Month
These figures reflect the standard employer/employee split applied to the EUR 188.36 increase in the cap. They apply per affected employee, per month, on an ongoing basis — not as a one-time adjustment.
How to Stay Compliant
- As you prepare to run August payroll, identify any Bulgarian employees with earnings above EUR 2,300/month.
- Remember, this change is already in effect, which means the additional contribution amounts need to be calculated and applied immediately.
- Since this is a recurring line item, it needs to be incorporated as a monthly cost increase in company expense tracking and budgeting — not treated as a one-off adjustment to August alone.
- If you use a payroll provider or system that references the insurable income cap, confirm it's been updated to EUR 2,300. A provider running on the old EUR 2,111.64 figure will under-withhold and under-remit for impacted employees.
Bottom Line
There was no rate change or process change — just a higher cap on how much pay counts toward contributions. If you manage Bulgaria payroll, check your employee list now to identify which employees are affected, and ensure that August payroll processing reflects the new cap.
