Contents
- From 1 January 2025, the minimum wage is BGN 1,077, which requires the pay of minimum-wage employees to be recalculated.
- Retirement requirements continue to rise gradually for both women and men.
- From 1 January 2025, the VAT registration threshold was BGN 166,000 (from 1 April 2025 it returned to BGN 100,000), and the reduced rates for bread, flour and restaurant services ended.
- The new Classification of Economic Activities, KID-2025, applies from 2025.
The start of 2025 brought significant legislative changes in Bulgaria affecting both businesses and individuals. This article looks at the main changes and their impact.
Increase in the Minimum Wage
From 1 January 2025, the minimum wage in the private sector rose from BGN 933 to BGN 1,077. The increase follows the mechanism that sets the minimum wage at 50% of the national average gross wage.
Impact:
- Employers: They must recalculate the pay of employees on the minimum wage and update their employment contracts.
- Employees: The increase means higher income for those on the minimum wage, which may improve their standard of living.
Changes to Insurable Income
- Maximum insurable income: An increase in the maximum insurable income for all insured persons was proposed, to BGN 4,130, but for the time being it remains at its 2024 level of BGN 3,750.
- Contribution rates: Social security contribution rates are unchanged from 2024.
Impact:
- Employers and self-employed persons: They should familiarise themselves with the current thresholds and plan their budgets accordingly.
Retirement Conditions
The gradual increase in the retirement age and the required length of service continues:
- Women: 62 years and 4 months of age and 36 years and 8 months of service.
- Men: 64 years and 8 months of age and 39 years and 8 months of service.
Where the required length of service has not been reached, the condition for retirement is 67 years of age and at least 15 years of actual service.
Impact:
- Individuals: They need to plan their careers and length of service to meet the new retirement requirements.
Changes to Tax Legislation
- VAT registration threshold: From 1 January 2025, the mandatory VAT registration threshold rose from BGN 100,000 to BGN 166,000.
- VAT rates: The reduced rates for bread, flour, restaurant and catering services expired, and the standard rate of 20% has applied again since 1 January 2025.
Impact:
- Businesses: Small and medium-sized enterprises should assess whether the new VAT registration threshold affects them and take the necessary action.
- Consumers: Prices of goods and services returning to the standard VAT rate may rise.
New Classification of Economic Activities (KID-2025)
From 1 January 2025, the new version of the Classification of Economic Activities, KID-2025, came into force, replacing the previous 2008 version. The revision reflects changes in economic activities and technological developments in recent years.
Impact:
- Businesses and statistical authorities: They need to update their activities and reporting in line with the new classification.
The legislative changes in force from 1 January 2025 have a significant impact on many aspects of economic and social life in Bulgaria. Businesses and individuals should familiarise themselves with these changes and take the necessary steps to adapt. We recommend consulting legal and financial professionals for detailed information and advice tailored to your situation.
Frequently asked questions
What was the minimum wage in 2025?
BGN 1,077 from 1 January 2025, compared with BGN 933 in 2024.
What were the retirement conditions in 2025?
For women, 62 years and 4 months of age and 36 years and 8 months of service; for men, 64 years and 8 months of age and 39 years and 8 months of service. Without sufficient service: 67 years of age and at least 15 years of actual service.
What is KID-2025?
The new version of the Classification of Economic Activities, which replaced KID-2008 from 1 January 2025. Businesses and statistical authorities must update their reporting accordingly.
