The Bulgarian Parliament adopted Budget 2018

In 2018 taxes are not subject to significant changes, keeping up with the government’s low tax priority. It is expected next year that the Bulgarian economy will grow by 3.9%, unemployment rate will decrease to 6.2% and inflation will be 1.6% – due to the increase in food and fuel prices.

According to estimates, from the beginning of 2018, people with the lowest income will receive BGN 510 minimum wage. It is planned to increase gradually to BGN 610 in 2020.

Changes are also envisaged in the State Social Security Budget Act. The draft for 2018 was approved by the Council of Ministers. Discussion with the National Assembly of the Republic of Bulgaria is forthcoming.

According to the State Social Security Budget draft for 2018, it is expected that the maximum monthly amount of the insurable income will be maintained for the self-insured – BGN 2,600. It is envisaged that the differentiated amount of the minimum insurable income for the self-insured persons will be dropped. Expectations are that a fixed minimum of BGN 510 will be imposed on which self-insured persons will be able to pay advance insurance contributions for the month. It is also expected that in 2018 no contributions will be paid to the GRE Fund and the maximum amount of the guaranteed receivables under the Law on the Guaranteed Receivables of Employees in the event of bankruptcy of the employer for 2018 to be set at BGN 1300.

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