Bulgaria Proposes Food Voucher Limit Increase to €200 in 2027 Budget
The Bulgarian government proposed raising the maximum monthly food voucher limit to €200 per employee as part of sweeping budget changes for 2027, according to an announcement reported by Bulgarian News Agency (BTA) and regional media outlets including Dunavmost and Utro Ruse. The measure lifts the current cap of €102.26 (the equivalent of 200 leva) per worker monthly while introducing a 7% tax on the amount exceeding the old threshold. Officials project the annual quota for electronic food vouchers will expand from €818 million to €1.5 billion, according to Darik Business Review.
Industry Response and European Comparison
Veronika Yordanova-Nedkova, a representative of the Association of Voucher Operators in Bulgaria, told BTA that the adjustment is a positive and long-overdue step to preserve the purchasing power of the social benefit. Yordanova-Nedkova noted that the last adjustment occurred in 2022, during which period food prices rose by over 50 percent and the minimum wage increased by nearly 70 percent. With the previous limit of €102, Bulgaria ranked at the bottom of the European Union, whereas the new €200 ceiling aligns the country with levels seen in Belgium and Portugal, Utro Ruse reported. The Association of Voucher Operators in Bulgaria supports the proposal of the government and the Ministry of Finance for increasing the monthly voucher limit up to 200 euros and the total annual quota up to 1.5 billion euros, the organization reported.
An association survey conducted among employers showed that a vast majority support raising the tax-free threshold, keeping food vouchers among the most sought-after benefits by employees. Data from Dunavmost indicates that over 80 percent of employers planned to increase voucher values for their teams, impacting approximately 850,000 workers across the country.
Implementation of the New Seven Percent Tax
For the first time since the inception of the benefit, the government plans to levy a 7% tax. Finance Minister Gălăb Donev explained that the tax will apply exclusively to the portion above the current €102 threshold, according to BTA. Ministry calculations indicate that an employee will effectively receive a maximum net value of €186 rather than the full €200. The exemption from social security contributions remains fully intact.
Utro Ruse noted that voucher operators view Bulgaria as one of the few EU member states to impose such a levy, likening the move to Romania’s tax framework. Operators emphasized that the tax mechanism must be carefully calibrated to avoid undermining the core social purpose of the benefit.
Regulatory Scrutiny and Merchant Fees
Addressing public statements from Consumer Protection Commission head Maya Manolova regarding a potential referral to the Commission for Protection of Competition (CPC) over price impacts, Yordanova-Nedkova stated to BTA that a similar antitrust review concluded about a year prior. That previous CPC probe examined digitalization and found no negative market distortions. Operators point to the sectoral analysis of the Commission for Protection of Competition, carried out in the 2024–2025 period, as an argument.
Dunavmost reported that the transition to electronic cards eliminated paper administration and transport costs, cutting settlement times from two weeks to match standard bank card speeds. This efficiency spurred growth among small and medium-sized merchants joining the network. Operators rejected claims that handling fees inflate retail food prices, noting that fees are negotiated strictly on market principles and that the antitrust authority found no market imbalances.
Frequently Asked Questions
How much will workers actually receive on their food vouchers under the 2027 budget?
While the nominal cap rises to €200 per month, the newly introduced 7% tax on the amount exceeding the previous €102.26 limit brings the net maximum benefit to approximately €186, according to calculations from the Ministry of Finance reported by BTA.
What is the total planned allocation for electronic food vouchers in 2027?
The government’s budget proposal increases the annual quota for electronic food vouchers from €818 million to €1.5 billion, as detailed by Darik Business Review.
Do local merchants and small shops participate in the electronic voucher system voluntarily?
Yes, merchant participation is completely voluntary. According to data cited by Dunavmost, digitalization has increased the participation of small and medium-sized neighborhood stores and restaurants by removing the administrative burdens and delays associated with paper vouchers.