Investment in the Welfare System

The Bulgarian parliament adopted the State Social Insurance budget for 2025 in March 2025, increasing the National Health Insurance Fund (NHIF) budget significantly by BGN 1.2 billion (Bulgarian lev – €613 million) to BGN 9.4 billion (€4.81 billion). This budget increase will help improve healthcare for children up to seven years old by paying for their medicines for infectious diseases or for home treatment.[1] While these improvements are welcome, the NSG highlights several unaddressed problems.

Financing the mandatory NHIF insurance places a heavy burden on people in Bulgaria. In spite of a standard contribution rate of 8% of gross salary, Bulgarians often have to make large out-of-pocket payments (OOPPs). In 2021, 65% of health expenditure was paid through public funds, 33.7% through OOPPs and 1.3% through other private sources, according to the Health System Summary 2024 by the European Observatory on Health Systems and Policies.[2] This heavy reliance on OOPPs disproportionately affects people with lower incomes and increases their risk of being pushed into poverty.

Another problem identified by the NSG is the low pay of healthcare professionals, in particular doctors. The 2025 budget foresees only a 5% increase in doctors’ pay, leading to protests from young doctors. Doctors’ trade unions advocate for salaries of resident doctors – those in a specialized traineeship – at least 3.5 times the minimum wage. They also advocate for basic remuneration for medical and health professionals to be at least 1.5 times the average wage. Raising these wages would make healthcare more attractive as a profession, as there is a lack of healthcare personnel in Bulgaria. The Bulgarian healthcare system is currently even relying on pensioners to sustain its operability, highlighting the need for young healthcare personnel.

The Bulgarian government has been working on several proposals to address these issues. It proposes to attract foreign students to Bulgaria by providing free tuition on the condition that they work in Bulgaria for three to five years after graduating.[3] As a share of GDP, public spending on healthcare in Bulgaria is 5.6% for 2022, while in Europe this share is 8-9% of GDP. The 8% of GDP allocated to healthcare is due to the high private costs of people for examinations, co-payments in hospitals, tests, medicines, etc. The main source of financing in healthcare in Bulgaria remains the National Health Insurance Fund. Experts recommend that total investments in Bulgaria’s healthcare be increased to 10% of GDP, thus predicting a reduction in the rate of out-of-pocket payments by patients to 25-30%.[4] This additional funding could also be used to raise the pay of healthcare professionals.

In addition, this increased budget should be used to reduce OOPPs to less than 20% of healthcare expenditure, the NSG recommends. This would be closer to the EU average of 14.3% in 2022.[5] Discussions are ongoing in the government over the establishment of a special innovation fund to ensure early access to innovative medication and address shortages of medicines and other consumables, the NSG reports.[6] The NSG also highlights the need to increase the efficiency of NHIF allocation.

Gender Equality

Bulgaria has made little to no progress in gender equality and scores lowest in the EU in the field of money, the NSG reports. This is reflected in the country’s ranking in the Gender Equality Index of the European Institute for Gender Equality (EIGE).[7] Bulgaria dropped one position in 2024, to 17^th out of the 27 EU Member States. Its index score fell 0.6 to 64.5 out of 100, in spite of a rise of 0.9 points in “work” – though its ranking in this category remained 22.

The fall in the overall index was mainly due to a decrease of 3.9 points in “power”. The decrease in this category was the second largest among the 27 countries and caused Bulgaria to fall from 11^th to 14^th place in “power”. The greatest factor was economic power, in which Bulgaria fell to 15^th place, from 3^rd in 2017. The index highlights the need for change in related areas, such as “money”, in which Bulgaria has ranked bottom since 2017 with a score that decreases each year. In the sub-category “financial resources”, Bulgaria also ranked bottom, while in “economic situation” it ranked 26^th. In the area of political power, the NSG highlights the low representation of women in parliament. In recent years, the proportion of female MPs has fluctuated around 24%, significantly below the EU average of 33%. However, the current National Assembly has a chairwoman, and 33% of ministers are women, close to the EU average of 35%.

The government adopted the Report on Equality between Women and Men in Bulgaria for 2023 on 15 October 2024. This reviewed the National Action Plan for Promoting Equality between Women and Men for the period 2023-2024.[8] The Plan included daycare services to facilitate women’s access to employment and other social services for women. It also featured measures to combat female unemployment, raise awareness of gender stereotypes and prevent gender-based violence.

However, gender gaps still persist in several areas, the report shows. The employment rate of women in 2024 was 67.4%, compared to 73.9% for men. Women draw pensions for an average of 27.6 years, seven years longer than men, but their average monthly pension was BGN 1 445.55 (€739) in 2023, lower than the BGN 1 488.15 (€760) for men. The unemployment rate for women is higher than for men, according to the Bulgarian Employment Agency.[9] The group of women with the highest unemployment is those with higher education, at 64.5%. For men with higher education, the rate is only 35.5%.

The proposal for Amendments to the Law on Equality between Women and Men was adopted at first reading in February 2025 and is intended to improve the gender balance among company directors.[10]

The proposed Amendments are meant to implement Directive (EU) 2022/2381, which needed to be transposed on December 28^th 2024. The amendments follow the Directive’s target of at least 33% of director positions being filled by the less-represented gender. The amendments also require corporate governance declarations of progress towards the target. However, despite the amendments’ relatively fast adoption, they have still not been finally approved June 2025. The NSG points out that positive changes are not likely in the short term.

Boas práticas

In 2023, within the framework of the procedure for awarding the Distinguished Mark for significant achievements in the policy of equality between women and men, a number of organizations and initiatives that demonstrate sustainable and innovative practices were recognised.

Among the leading examples is Kamenitsa AD, which achieves gender balance in its leadership teams and relies on diversity and inclusion programs. The company implements flexible working time policies, additional paid parental leave and incentives for combining personal and professional life. Through an annual well-being calendar, training and internal initiatives, the company promotes inclusive leadership and equal opportunities.

VMware Bulgaria EOOD also stands out with its programs for women in technology, including support for Women Who Code and the internal mentoring initiative Women Connecting Women.[11] The company invests in internship and volunteer programs, as well as in the professional and personal well-being of employees through sports initiatives, psychological support and extended paid paternity leave.

At Eurobank Bulgaria AD, a number of social benefits – additional pension insurance, health packages, hybrid work, relaxation zones and cultural initiatives – as well as leadership programmes are indicated as good practices.[12]

The Council of Women in Business in Bulgaria also makes a significant contribution, promoting successful leadership models, organizing national forums and mentoring programs, as well as initiatives for inclusion and equality in the context of the green transition and digitalization.[13]

Educação, formação e aprendizagem ao longo da vida

The development of Bulgaria’s STEM centres and National STEM Centre are highlighted by the NSG as important positive developments. The centres seek to improve Bulgarian students’ results in maths and natural sciences and to encourage them to take these courses. They use learning through experience to enable students to learn specific skills and competences. Bulgaria currently has around 400 STEM centres and plans to increase the number to 2 000 by May 2026.[14] The National STEM Centre is currently being established.[15] It will play an important role in aiding Bulgarian schools to create STEM infrastructure and will support their shift to learning through experience. The National STEM Centre is aiming to create an innovative, high-tech school environment, and it will include state-of-the-art laboratories in areas such as “Green Technologies and Sustainable Development”.

Dual education has been receiving increased attention in recent years. By September 2024, nearly 700 companies in Bulgaria had conducted dual training for students with over 1 600 mentors. Most of these students are enrolled in technical courses.[16] A third are studying to be electrical technicians, and nearly two thirds to be mechanical technicians. Despite the popularity of dual learning in these two specialities, other specialities have no dual learning option despite being well suited to the method, the NSG points out. These range from crafts such as locksmith and welder to social professions such as assistant educator and social assistant. Dual education offers should be better matched to the needs of employers, according to the NSG. This could possibly take the form of informational campaigns on professional orientation aimed at young students.

Youth Unemployment

Youth unemployment fell to 10.1% in April 20253 percentage points below its level in April 2024 and significantly lower than the EU average of 14.8%.[17] The NSG highlights several measures in recent years that have reduced youth unemployment.

The Human Resources Development Programme implements funds from the European Social Funds Plus to help young people who have completed their education enter the labour market. The Programme finances the development of skills, professional qualifications and key competences, for example through the Youth Employment Plus programme. This supports the acquisition of work experience through internships, dual education training and even subsidised employment.

Another EU-funded project, “From Higher Education to Employment”, seeks to provide over 46 000 students with skills for professional development over its implementation period going from 2024 to 2029. Within the project framework, the Ministry of Education and Science provides practical training in enterprises and organisations and approve dual-training opportunities in higher-education institutions. The project is also planning activities to assist students in developing entrepreneurial skills and financial literacy and teachers in teaching them.

An initiative seeking to provide start-up entrepreneurs from Northern Bulgaria with public financial assistance of up to BGN 50 000 and consultations and training on business creation and development is currently under discussion.

Lastly, the NSG highlights the launch of the online platform edujobs.mon.bg, which plays an important role in coordination. The platform is managed by a partnership of 44 higher education institutions in Bulgaria, which are also involved in its organisation. Employers publish their positions on the platform, and students apply for them. The platform guarantees that every student who studies at one of the 44 partner institutions will have the opportunity to participate in practical training.

[1] National Assembly of the Republic of Bulgaria (2025), “Narodnoto sʲbraniye priye na vtoro chyetyenye byodʐyetitye na Dʲrʐavnoto obshtyestvyeno osiguooryavanye i na Natzionalnata zdravno-osiguoorityelna kasa za 2025 gu.”: https://www.parliament.bg/bg/news/ID/6219

[2] European Observatory on Health Systems and Policies (2024), “Bulgaria: Health System Summary 2024”: https://eurohealthobservatory.who.int/publications/i/bulgaria-health-system-summary-2024

[3] Bulgarian news agency (2025), “Bulgaria Links Medical University Admission to Domestic Healthcare Needs”: https://www.bta.bg/en/news/bulgaria/903965-bulgaria-links-medical-university-admission-to-domestic-healthcare-needs?

[4] Council of Ministers Republic of Bulgaria (2024) “Protocol 49.24 / 27.11.2024”: https://pris.government.bg/document/9b35b8bee48fbedb17d5bb1bf27877ae

[5] Eurostat (2025), “Out-of-pocket expenditure on healthcare”: https://ec.europa.eu/eurostat/databrowser/view/tepsr_sp310/default/table?lang=en

[6] Bnr.bg (2024), “Razširjava se dostǎpǎt u nas do inovativni lekarstveni terapii po linija na NZOK”: https://bnr.bg/post/102072491/razshirava-se-dostapat-na-balgarskite-pacienti-do-inovativni-lekarstveni-terapii-zaplashtani-ot-nzok

[7] European Institute for Gender Equality (2025), “Gender Equality Index”: https://eige.europa.eu/gender-equality-index/2024/country/BG

[8] Council of Ministers of the Republic of Bulgaria (2024), “Protokol 43.15 / 15.10.2024 gu.”: https://pris.government.bg/document/72e9c0967c00250bf340675c2bce3162

[9] Ministerstvo na Truda i Sotsialnata Politika (2024), “DOKLAD ZA RAVNOPOSTAVYeNOSTTA NA ʐYeNITYe I MjʐYeTYe V BjLGuARIYa ZA 2023 gu.”: https://www.mlsp.government.bg/uploads/41/test/za-ravnopostavenost-na-zhenite-i-mzhete-za-2023-g.pdf?

[10] National Assembly of the Republic of Bulgaria (2024), “The proposals for the Law on Equality between Women and Men”: https://www.parliament.bg/bg/bills/ID/165879

[11] Ekaterina Karavelova Foundation (2023) ” Equality in the workplace: the VMware Bulgaria practice“: https://ekfwomen.org/en/equality-in-the-workplace-the-vmware-bulgaria-practice/

[12] Eurobank (2025) ”Providing equal opportunities”: https://www.eurobank.gr/en/group/careers-at-eurobank/why-eurobank/provide-equal-opportunities

[13] Unisofia (2024), “The Council of Women in Business in Bulgaria was awarded for an initiative carried out jointly with FEBA and Lidl Bulgaria”: https://www.uni-sofia.bg/index.php/eng/layout/set/print/the_university/faculties/faculty_of_economics_and_business_administration/news/the_council_of_women_in_business_in_bulgaria_was_awarded_for_an_initiative_carried_out_jointly_with_feba_and_lidl_bulgaria

[14] Ministerstvo na obrazovanieto i naukata (2025), “NAD 400 STEM CENTǍRA VEČE SA OTKRITI V UČILIŠtATA V STRANATA, DOGODINA ŠtE IMAME NAD 2000”: https://www.mon.bg/news/nad-400-stem-czentara-veche-sa-otkriti-v-uchilisthata-v-stranata-dogodina-sthe-imame-nad-2000/

[15] Ministerstvo na obrazovanieto i naukata (2025), “Započna izgraždaneto na Nacionalen STEM centǎr”:https://sf.mon.bg/?go=news&p=detail&newsId=1492

[16] Institute for Market Economics (2025), “Sled poveče ot desetiletie usilija pikǎt na dualnoto obrazovanie dostiga 9% v priema tazi godina*”: https://ime.bg/articles/sled-poveche-ot-desetiletie-usiliya-pikyt-na-dualnoto-obrazovanie-dostiga-9-v-priema-tazi-godina/

[17] Eurostat (2025), “Youth unemployment rate by sex”: https://ec.europa.eu/eurostat/databrowser/view/tesem140/default/table?lang=en

Job Security

Thanks to changes to the Labour Code, Bulgaria is transitioning from paper employee records to a single electronic work record in the employment register.[1] The change became effective on 1 June 2025, and employers have one year to complete employees’ employment records. The work records detail the employee’s length of service in a company as well as other information. They are thus important both from a social security perspective – for instance, to calculate benefits – and when the employee tries to find a new job. The changes to the labour code also expand the list of information that needs to be included in employee records, and they increase the frequency of notifications to the National Revenue Agency. As such, the changes could help reduce the administrative burden for employees. However, both employers and human resources specialists have expressed concerns over possible ambiguity in the application of the new rules. Even though the new system should make the old employee records obsolete, the National Social Security Institute advises employees to hold on to their paper versions, as they might be needed to verify length of service for pension benefits, which may defeat the simplification purpose of the measure itself.

[1] Bnr bg (2025), “Elektronen registǎr zamenja hartienite trudovi knižki”: https://bnr.bg/vidin/post/102168788/elektronen-registar-zamena-hartienite-trudovi-knijki

Habitação

Bulgaria has the highest housing stock per capita in the EU in 2024 according to the Deloitte Property Index, with 672 homes per 1 000 people.[1] The property Index further points out that Bulgaria’s mortgage interest rate of 2.6% is one of the lowest in the EU. Wages have increased in Bulgaria, with workers from rapidly developing sectors, such as the IT industry, buying houses in large cities such as Sofia. Additionally, others see buying a house as a safe investment, as they expect Bulgaria’s accession to the Eurozone to further increase prices. This has led to significant increases in both housing transactions and housing prices, with Eurostat’s housing price index climbing to 224.5 points in Q1 of 2025.[2] Housing prices in Bulgaria have been consistently increasing over the past years. However, there are high regional disparities in prices, with some areas having prices around €1 000 per square meter and others, like the city of Sofia, going as high as €2 500 per square meter.

The National Recovery and Sustainability Plan foresees the renovation of about 64% of a selection of residential blocks by May 2026, with the remaining residential blocks renovated by 2027.[3] In total, this will mean the renovation of the homes of around 150 000 families, entirely through public funds. This renovation is direly needed, as pointed out by the OECD.[4] Moreover, it should help improve the energy efficiency and heating of the buildings, which is equally needed, as evidenced by 19% of the Bulgarian population not being able to keep their homes adequately warm.[5]

The government has also introduced measures to improve the accessibility of housing. The National Program for Accessible Housing and Personal Mobility has financed 54 projects throughout 2025, which seek to ensure an accessible environment for people with disabilities, through the installation of – for example – stair platforms and vertical lifts. In 2024 already, projects created an accessible environment for 73 people across 54 residential buildings.[6]

[1] Deloitte (2025), “Deloitte Property Index 2025”: https://www.deloitte.com/cz-sk/en/Industries/real-estate/research/property-index.html

[2] Eurostat (2025), “House price index (2015 = 100) – quarterly data”: https://ec.europa.eu/eurostat/databrowser/view/prc_hpi_q__custom_13118820/bookmark/table?lang=en&bookmarkId=b6a0430f-be99-4704-a925-661e269af16c&c=173626228347

[3] Ministyerstvo na ryeguionalnoto razvitiye i blaguooostroystvoto (2025), “Zam.-ministʲr Dora Yankova: MRRB nye dyeli kmyetovyetye po partiyen priznak, rabotim s vsichki”: https://www.mrrb.bg/bg/zam-ministur-dora-yankova-mrrb-ne-deli-kmetovete-po-partien-priznak-rabotim-s-vsichki/

[4] OECD (2024), “PH1.2 HOUSING POLICY OBJECTIVES AND OBSTACLES”: https://webfs.oecd.org/els-com/Affordable_Housing_Database/PH1-2-Housing-policy-objectives.pdf

[5] Eurostat (2025), “Inability to keep home adequately warm”: https://ec.europa.eu/eurostat/databrowser/view/ilc_mdes01__custom_12698269/bookmark/table?lang=en&bookmarkId=71b03a30-d55f-4c62-b476-87987f5363cd&c=1724852005604

[6] MINISTERSTVO NA TRUDA I SOTSIALNATA POLITIKA (2025), “Pryez 2025 gu. MTSP shtye finansira 54 proyekta za dostʲpna ʐilishtna sryeda za khora s oovryeʐdaniya”: https://www.mlsp.government.bg/prez-2025-g-mtsp-shche-finansira-54-proekta-za-dostpna-zhilishchna-sreda-za-khora-s-uvrezhdaniya

The CIVICUS monitor continues to classify civic space in Bulgaria as “Narrowed”, a status that has not changed since 2018.[1] This classification indicates that, while individuals and civil society organizations can exercise their rights to freedom of association, peaceful assembly and expression, these rights are often violated through harassment, arrests or assaults of critics of those in power, as well as through excessive force during protests and political pressure on the media.

Civil Dialogue

Bulgaria had been improving in the area of press freedom, rising from 71^st place in 2023 to 59^th in 2024 in the Reporters Without Borders ranking.[2] However, conditions worsened in 2025, and the country dropped to 70^th place. Journalists in Bulgaria face several kinds of attack. Media owners are often powerful and close to politicians and businessmen, and they increasingly use conditional funding to limit editorial independence. Police agents used violence against journalists covering a protest during the Euro 2024 football qualifying games and also detained a journalist, even though all journalists showed their accreditation.[3] Journalists have also been the target of strategic lawsuits against public participation (SLAPPs). The best-known case is Rosen Bosev, who published revelations over Stoyan Mavrodiev, the former head of the Financial Supervision Commission, and Petya Kruncheva, a judge. Bosev was prosecuted and fined BGN 1,000 (€511). The European Court of Human Rights ruled this a violation of Articles 6 and 10 of the European Convention on Human Rights – respectively, the right to a fair trial and the right to freedom of expression.[4]  The Court ordered Bulgaria to refund the fine to Bosev and to pay him €3 000 in moral damages.

A draft law introduced in September 2024 designates individuals or organizations that receive more than BGN 1 000 (€511) from abroad as “foreign agents”.[5] Under the law, these individuals or organizations would be listed in a public registry and would be obliged to indicate their status as a foreign agent on communications such as emails, publications and social media posts. The status would prohibit them from activities in schools, kindergartens and other educational facilities and from engaging in so-called “political activities”. This bill, if it were to pass, would worryingly jeopardize the freedom of association.

[1] CIVICUS (2025), “CIVICUS Monitor – Bulgaria”: https://monitor.civicus.org/country/bulgaria/

[2] Reporters Without Borders (2025), “Bulgaria”: https://rsf.org/en/country/bulgaria

[3] CIVICUS (2024), “”Unprecedented” police violence against journalists at football fans’ protest against management”: https://monitor.civicus.org/explore/unprecedented-police-violence-against-journalists-at-football-fans-protest-against-management/

[4] Sega (2024), “Žurnalist osǎdi Bǎlgarija zaradi nečesten proces za kleveta”: https://www.segabg.com/hot/category-bulgaria/zhurnalist-osudi-bulgariya-zaradi-nechesten-proces-za-kleveta ; European Court of Human Rights (2024), “Domestic court’s lack of impartiality infringed rights of journalist convicted of defamation”: https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://hudoc.echr.coe.int/app/conversion/pdf/%3Flibrary%3DECHR%26id%3D003-7962988-11102673%26filename%3DJudgment%2520Bosev%2520v.%2520Bulgaria%2520-%2520Failure%2520to%2520comply%2520with%2520the%2520requirements%2520of%2520court%2520impartiality%2520in%2520a%2520case%2520where%2520a%2520journalist%2520had%2520been%2520convicted%2520of%2520defamation.pdf&ved=2ahUKEwj63fzpgcKPAxUJnf0HHWJcPPoQFnoECCEQAQ&usg=AOvVaw1BUDn6V4rsVBxFlTPzfbOr

[5] CIVICUS (2024), ““Foreign agent” law introduced to parliament, law banning “LGBTQI+ propaganda” passed”: https://monitor.civicus.org/explore/foreign-agent-law-introduced-to-parliament-law-banning-lgbtqi-propaganda-passed/

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