site.btaEmployers Propose Uniform 5% Rise in Public Sector Salaries in 2026

The Bulgarian Industrial Capital Association (BICA) on Tuesday made proposals for the revenue side of the state budget for 2026.

"If we as a society agree to a 5% increase in the remuneration of everyone in the public sector, the effect on the budget will be about 570 million. It exceeds the effect of a two-percentage-point increase in social security contributions," BICA Governing Board Chair Rumen Radev said. He was speaking at a national conference on professions and a sustainable future, held in Sofia.

Regarding the dividend tax and the planned increase from 5% to 10%, Radev said that the latest opinions have been received and that the effect on individuals is extremely minimal. "Last year the dividend tax paid by individuals amounted to BGN 1.5 million. It is very unserious to send dramatic signals to investors and in the end have a minimal increase," Radev said.

He confirmed that he will attend the meeting of the National Assembly Budget and Finance Committee later on Tuesday and that representatives of the other three large employer organizations will also be there. According to him, this shows that the employer organizations are not avoiding dialogue with the government and the trade unions.

"We want to familiarize members of parliament and colleagues from the Budget Committee with our proposals for changes. I do not think anything will change before the first reading, but at today's meeting we count on important steps being taken for the week between the two readings," Radev added.

According to the BICA Chairman, the central budget has a buffer slightly below EUR 1 billion. My proposal is for EUR 300 million to be withdrawn from there under the item "effect and positives", Radev explained.

He expressed skepticism about the capabilities of the government, which in his view is guided by the political format of this "triple plus coalition", and therefore their discussion will be in the Budget Committee. "We have discussed the possibilities for a national protest if our demands are not heard, since this concerns everyone. We hope there will be receptiveness in the National Assembly, but when one step is exhausted, another follows," Radev said.