Employers' groups backed the draft 2027 state budget, but with reservations and conditions. The Podkrepa trade union did not back it, and the KNSB union says the budget understates revenue. The social partners gave their views at a briefing at the Council of Ministers on Thursday, after an extraordinary meeting of the tripartite council (NSTS).
Employers and unions discussed the draft state budget together with the budgets of the National Health Insurance Fund (NZOK) and of state social security (DOO).
Earlier on this story: Unions, employers and government talk 2027 budget, health contribution stays at 8%
The BSK, AIKB, BTPP and KRIB supported the state budget. The BSK, BTPP, KRIB, Podkrepa and KNSB backed the NZOK and DOO budgets, while the Association of Industrial Capital (AIKB) abstained.
All employers' groups have reservations about the three bills and set conditions for giving them full support. Dobri Mitrev, chairman of the Bulgarian Industrial Association (BSK), said business welcomes the lower deficit, less redistribution of money through the budget, and the decision to keep the tax and social security model and the main rates.
Employers also back the halt to automatic pay rises in the public sector, the announced administrative reform, and incentives for investment and technology upgrades. They firmly oppose the so-called windfall tax of 33% on selected companies.
Business rejects the plan to raise the maximum insurable income by 100 euro, to 2,400 euro.
Mitrev said employers favour updating pensions and the main benefits. They also support civil servants and judicial staff paying their own social security contributions. Business wants a full roadmap for pension reform. Employers agree that parents should have incentives to return to work, but say any extra incentives must come from the state budget. They also want more money and action for prevention, early diagnosis and health monitoring.
Ioannis Parteniotis, vice president of the Podkrepa trade union, said the union backs the NZOK budget in principle. Podkrepa says the key points in it are prevention, early diagnosis, regular follow-up care and the expanded child health programme.
Podkrepa backs the direction of the DOO budget and the updating of social security benefits. The union says there is no link between how much a person pays in and what rights they get. The minimum insurable income is not tied to the minimum pension, nor the maximum insurable income to the maximum pension. Podkrepa says the minimum pension should be 443 euro, the poverty line for 2027.
Asya Goneva of the KNSB said the union backs the DOO budget because its revenue and spending look positive. The KNSB will press for a change to the medium-term forecast, which now has the contribution ceiling rising by 100 euro every year.
"Instead of 100 euro a year, the maximum insurable income should rise so that its ratio to the maximum pension and to the minimum insurable income grows," Goneva said.
She called the higher benefit for child care, which will be paid until a child is 2 years old, a positive step. Goneva described the updating of the maximum pension for years worked and age as a very positive step. The KNSB also backs the NZOK budget in principle.
The union believes the GDP growth in the state budget is "more modest" than its own forecast.
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