Changing the minimum insurance income in the future is a key factor for pension reform in our country, as it will increase revenues from insurance contributions and will represent a real fight against the gray economy in our country. This was pointed out by the Minister of Labor and Social Policy of Bulgaria Borislav Gutsanov to journalists in the parliament, after the Budget and Finance Committee voted on the first reading the Draft Law on the State Social Security Budget for 2026.
Gutsanov emphasized that the new budget does not increase taxes or insurance contributions, adding that he has repeatedly stated that there should be no increase in the tax and insurance burden.
The Minister commented that the Roadmap for the improvement of the pension system in Bulgaria is extremely important, and his wish is to include a change in the minimum insurance income in it.
“If we do this, and not at the moment most people are insured on a minimum wage of 1200 leva, and it is clear that other things are probably happening, then this fundamentally changes both the revenues that enter the insurance system once and the second time – this is a real fight against the gray sector. We all say that there is over 25 percent gray economy, which is shockingly high – a quarter of the country's economy. Well, let's start a real battle with it and this is one of the proposals that can play a key role in this respect,” said Gutsanov.
He pointed out that he, as a minister, and his ministry have managed to raise the amount of the minimum wage, to ensure compliance with the “Swiss rule” and to increase the allowance for childcare after the second year of maternity leave after years of freezing its amount.
Gutsanov also said that the state has entered the homes for the elderly with all its might, and that the renovation of all 81 state homes is currently being carried out with saved funds of nearly 800 million leva, saved under the Recovery and Sustainability Plan.
“What depends on us has been done,” he said.
The Minister of Social Affairs pointed out that efforts will be made to check what is happening with the fake TELK decisions in the country, as there are suspicions of abuse.