New insurance thresholds change net incomes in 2026

From August 1, 2026, new insurance thresholds are in effect in Bulgaria, which affect net remuneration, employer costs, and the obligations of self-insured persons. The maximum monthly insurance income has been increased to 2300 euros, and the minimum for self-insured individuals has reached 620.20 euros.

The changes were introduced with the State Social Insurance Budget Act for 2026. Before August 1, the maximum insurance income was 2111.64 euros, and the minimum for self-insured individuals was 550.66 euros.

How net salary is formed

Under a standard employment contract, personal insurance contributions are first deducted from the gross remuneration. Then, a 10% tax is charged on the income remaining after the deduction of the mandatory personal insurance contributions.

Net income depends on the specific insurance category, the type of work, tax reliefs, additional remuneration, and other individual circumstances. Therefore, every calculation is approximate.

With a gross monthly salary of 1500 euros, the net amount is approximately 1164 euros. With a gross remuneration of 2500 euros, the employee would receive approximately 1985 euros net, and with 4000 euros – about 3315 euros.

Why the ceiling is important for high salaries

Insurance contributions are due only up to the maximum insurance income of 2300 euros. Income above this amount does not participate in the calculation of insurance contributions, but remains part of the tax base and a 10% tax is due on it.

This means that with a gross salary of 4000 euros, insurance contributions are not calculated on the entire amount, but on a maximum of 2300 euros. With a remuneration of 1500 euros, the change in the ceiling has no direct effect, as the income remains below it.

With a salary of 2500 euros, the insurance base reaches the new maximum, so the employee and the employer pay contributions on a higher amount compared to the period before July 31. With an income of 4000 euros, the effect is the same – the base is limited to 2300 euros, but this threshold is now 188.36 euros higher than the previous one.

Self-insured individuals pay on a higher minimum

The minimum monthly insurance income for self-insured persons is increased from 550.66 euros to 620.20 euros, which is an increase of 69.54 euros or 12.6%. The change affects people in freelance professions, sole traders, company owners, registered farmers, and other persons who are insured at their own expense.

Self-insured individuals can choose an insurance income between the minimum threshold of 620.20 euros and the maximum of 2300 euros. The amount of their monthly contributions depends on the chosen base and the risks for which they are insured.

The increase also affects people who pay their own health insurance without being self-insured within the meaning of the law. From August 1, the minimum monthly health insurance contribution for them is 24.81 euros.

The effect on employers

The cost of labor is not exhausted by the agreed gross salary. The employer also pays insurance contributions at their own expense on the employee's insurance income.

Increasing the maximum threshold raises the cost of labor for employees with remuneration above the previous ceiling of 2111.64 euros. This can place a particular burden on companies with many highly qualified and highly paid specialists.

A higher agreed salary is not equivalent to a higher standard of living. For households, what matters is the real disposable income – the amount after taxes and insurance contributions, compared with the prices of food, housing, transport, and services.

Pensions and the decision to retire

From July 1, 2026, the minimum pension for length of service and age is 347.51 euros. It was increased from 322.37 euros after the indexation of pensions by 7.8% according to the so-called "Swiss rule".

For people who are close to retirement age, the timing of stopping work has financial significance. If one retires up to one year before reaching the general retirement age, the amount of the pension is reduced for life.

Continuing to work can mean additional income and more length of service, which can affect the future amount of the pension. The individual effect depends on the insurance history, income, and the specific conditions for acquiring the right to a pension.

The most important question in 2026 is not just what the gross salary is according to the contract. It is important how much remains after insurance and tax, on what insurance base the contributions are paid, and what a household can actually afford with its disposable income.