Position of the Association of Bulgarian Employers’ Organizations on the draft State Budget Law for 2026

The Association of Bulgarian Employers’ Organizations (ABEO), uniting the Bulgarian Industrial Capital Association, the Bulgarian Chamber of Commerce and Industry, the Bulgarian Industrial Association, and the Confederation of Employers and Industrialists in Bulgaria, announced on 12 November that it will not take part in the meeting of the National Council for Tripartite Cooperation (NCTC).

In the statement concerning the proposed state budget, public social security budget, and National Health Insurance Fund budget for 2026, ABEO said it does not take political positions and distances itself from any political initiatives, stressing its commitment to openness, engagement and sustainable long-term solutions.

According to the Association, the draft state budget departs from the governing majority’s earlier commitment to maintain Bulgaria’s tax and social security model. Instead, it proposes a two-percentage-point increase in social security contributions, resulting in a rise of over 10% in pension fund expenses, as well as a doubling of the dividend tax. These measures, the statement said, will extract additional funds from every employee in the real economy to finance inefficient budgetary spending, including double-digit salary increases in the security, defence and higher education sectors.

ABEO warned that such policies burden businesses and workers, discourage investment, slow economic growth, expand the shadow economy, and ultimately reduce budget revenues. For these reasons, the Association said it does not support the 2026 State Budget Bill.

It added that the budget process does not allow for a genuine debate or a search for optimal solutions. Therefore, the organizations within ABEO will not participate in the November 13 NCTC meeting. The Association said it refuses to be part of a process that replaces social dialogue with a formal discussion of the country’s most important law.