Budget 2026: increase in social security contributions and tax on dividends - the reason for dissatisfaction

The so-called "first budget in euro" was supposed to be a sign that the state is entering a more peaceful phase - with a new currency, optimistic forecasts and promises of growing incomes. But as it turned out, the draft Budget 2026 caused more tension than enthusiasm. And the problem is not at all in the availability of funds, but in who will pay the bill. And all this falls on the shoulders of workers and businesses due to the increase in social security contributions, the rise in the cost of labor and the more aggressive taxation of profits.

For working people, the changes are immediately felt in two areas. The minimum wage should become 620 euros, and the average pension - to exceed 540 euros. On paper, this looks like a step forward, but it comes with an unpleasant addition: the social security burden increases. Pension contributions increase by another 2 percentage points, and the maximum insurable income exceeds 2300 euros. In the end, the worker sees higher deductions, and the employer - a higher price for each appointment.

It is this effect - more in the gross, but less in the net, with higher costs for companies - that made the trade unions and employers practically speak with one voice. The trade unions claim that in recent years the real salary in the state sector lags behind and this increase only partially fills the gap. The business, on the other hand, explains that this is how the state "takes over a billion leva from the real sector" in the first year.

The second conflict affects the entrepreneurs. The dividend tax should be increased from 5% to 10%. According to the motives - more fair taxation and additional revenues, but for many small and medium-sized firms this is a direct reduction of the personal income of the owners. Employers' organizations warn that the country is losing one of its few advantages in the region and sends a signal that the rules can be changed at any time.

It is not surprising that businesses were among the most active participants in the protests. Phrases like "budget of the bloated administration" and "more taxes without reforms" were heard from the tribunes.

For people outside the capital, the picture is simpler: social security contributions are rising, taxes are also rising, prices are not falling, and reforms are being postponed again. Many accept the increase in pensions as a necessity, but an interesting question arises - why the state itself does not start from its own expenses and privileges. And here the project, which was supposed to be presented as "the first modern budget in euros", turned into another sign of how far the government is from the people who month after month fill this budget.