Bulgaria’s Budget Freeze: Over 3.5 Million People Face Halted Incomes Ahead of Euro Adoption

Society | December 3, 2025, Wednesday // 07:49
Bulgaria: Bulgaria’s Budget Freeze: Over 3.5 Million People Face Halted Incomes Ahead of Euro Adoption

After days of nationwide demonstrations and mounting political tension, the government has withdrawn all three draft budget laws for 2026: the state budget, as well as the financial plans of the Social Insurance Institution and the National Health Insurance Fund. Prime Minister Rosen Zhelyazkov has called for a thorough revision of the entire framework. With fewer than fifteen working days left until the year’s end, it is becoming increasingly clear that a fully amended and approved budget will not be ready by January 1, 2026.

If no new legislation is passed in time, the country will shift to an extended budget procedure that is likely to remain in force until at least February or March. Under such conditions, every social transfer and the minimum wage would stay fixed at their December 2025 levels, converted into euros, with none of the previously negotiated or expected increases taking effect. This outcome would affect more than 4.2 million people across several vulnerable groups.

The biggest group is pensioners, numbering about 2.1 million. Their average pension would stay at 580 leva (around 297 euros), rather than rising to 620 leva as planned. The minimum pension would also remain unchanged at 580 leva instead of increasing to 620 leva.

Roughly 30,000 mothers caring for children up to two years old would also feel the impact. The amount paid during the second year of maternity leave would remain 780 leva per month (about 400 euros), instead of increasing to 900 leva. This leaves each mother short by 120 leva monthly.

Families with approximately 800,000 children would continue receiving child benefits in the current range of 50 to 100 leva. The intended ten percent increase and broader support for larger families would be halted.

Around 600,000 low-income workers would also be affected, as the minimum wage would stay at 1,077 leva (approximately 550 euros). The previously agreed adjustment to 1,213 leva (about 620 euros) would not take effect. Of these workers, 456,700 individuals would be missing out on 136 leva monthly. Additionally, about 83,000 personal assistants and caregivers would not receive their expected raises.

Some 450,000 socially vulnerable households would see no change to their heating support. The one-time allowance would remain in the 100 to 200 leva range, rather than rising to 120–240 leva along with an additional winter supplement.

Approximately 250,000 people with disabilities would also be affected. Their monthly additions would stay between 250 and 400 leva, instead of the intended 270 to 430 leva.

Healthcare personnel, including junior doctors and other medical professionals, numbering about 15,000, would remain on their current additional pay of 2,500 to 3,000 leva per month. The planned increase of 250 to 300 leva would not materialize.

An extended budget also restricts the launch of new major projects, including infrastructure initiatives, as revenue collection follows existing regulations and no new spending commitments can be made. At the same time, Bulgaria must uphold its macroeconomic obligations ahead of eurozone entry, such as keeping the deficit under 3 percent and maintaining debt below 60 percent of GDP. As of October, the deficit stood at 2.98 percent, nearly reaching the permitted ceiling, while external debt has risen to more than 48 percent of GDP.

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Tags: budget, Bulgaria, income

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