Government to Go Ahead with Poverty Line Proposal of BGN 764 Despite Disagreement with Social Partners

The social partners are meeting to discuss the poverty line for 2026. From left: Tripartite Council Secretary Vaska Shushneva, Deputy Prime Minister Tomislav Donchev, Labour Minister Borislav Gutsanov, Deputy Labour Minister Gergana Alexova - Velikova, Sofia, September 2, 2025 (BTA Photo/Minko Chernev)

Sofia,

02.09.2025 16:47

(BTA)

The National Council for Tripartite Cooperation met Tuesday to discuss the government’s proposal to raise Bulgaria’s poverty line to BGN 764 for 2026 - an increase of BGN 126 or 19.7% over the current level of BGN 638. The poverty line is a key benchmark for shaping social policy and determining eligibility for assistance programs. The draft decree setting the poverty line was originally published for public consultation on July 2 and is expected to be reviewed by the Council of Ministers on Wednesday despite the objections of the trade unions over methodology.

Labour and Social Policy Minister Borislav Gutsanov emphasized that the increase would expand access to benefits, particularly for vulnerable groups. Over 790,000 people with permanent disabilities would see their monthly financial aid rise above BGN 435, while 45,000 more individuals would qualify for social and heating assistance. In total, more than 1.4 million Bulgarians — or 21.7% of the population — currently live below the poverty threshold.

However, the proposal met resistance from trade unions, who criticized the methodology used to calculate the poverty line. CITUB Vice President Todor Kapitanov described the figure as a step forward but said it falls short of addressing real needs. The union argued that the formula relies on outdated data and lacks inflation indexing, making it disconnected from current economic realities.

Podkrepa Confederation of Labour also supported the proposed amount in principle but rejected the calculation method. Union representative Valeri Apostolov argued that the poverty line must reflect the actual cost of living and incorporate inflation, warning that flawed metrics lead to inadequate social protection.

In contrast, employers’ organizations unanimously backed the proposed poverty line. Representatives from the Bulgarian Industrial Association (BIA), the Bulgarian Industrial Capital Association, the Bulgarian Chamber of Commerce and Industry, and the Confederation of Employers and Industrialists in Bulgaria agreed that the draft complies with legal and statistical standards. They opposed indexing the poverty line to a minimum consumer basket, arguing that it would distort the measurement of relative income levels. Others stressed the need for predictability and cautioned against repeated changes to an already-reviewed methodology.

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