Pensions will be raised by 10% from July 1, and to them will be added forever the bonus of BGN 60, as well as the compensatory supplement from February. This was finally accepted by the deputies with the update of the state social security budget. If the state budget is published by July 30, the NSSI will have enough time to pay the increase together with the regular transfer of pensions from the 7th to the 20th. In the worst case, they will be transferred to another number during the month.
Thus, from July 1, the minimum pension will be BGN 467, and the average pension is expected to reach BGN 666 in July 1. The old-age social pension will be BGN 247. The pension ceiling from July 1 will be BGN 2,000. From October 1, the maximum pension will be BGN 3,400. (See what the pension increases will be in the infographic.)
A recalculation of pensions remains for the autumn, which will raise the income of 717 thousand people. There will also be a modification of the Swiss rule – to apply either 100% inflation growth or 100% growth of insurance income.
In June, 1,038,200 Bulgarians will receive minimum pensions, and from July 1 their number will drop to 948,500.
From October 1, all pensions granted until the end of last year will be recalculated. The duration of the insurance period as of September 30, 2022 will be taken into account, as well as the severity of one year of service. The amount thus determined shall be increased by a percentage for each calendar year following the year in which the pension was granted. It will be equal to either the average insurance income for the country or inflation – depending on which percentage is higher.
This will bring an increase of 194.3%, the calculations show. Thus, the planned modernization can raise pensions by an average of BGN 136, but only to about 718 thousand people – 35% of all.
We will distort the pension system and increase its dependence on the state budget, explained Denitsa Sacheva from GERB. According to her, the big problem is that there is no planned income. Insurance must be raised by at least 5% to cover the deficit, and the other option is to take on new debt. According to her, the inclusion of the supplements in the basic amount of the pension will lead to unprincipled discrimination, as some will receive BGN 60, others BGN 75, and others – BGN 115.
There is no problem with the sustainability of the system, because there is an increase in tax revenues, assured the head of the social commission Iskren Arabadjiev from the PP.
In 2009 the deficit in the state social insurance was BGN 1.523 billion, and now it is BGN 8.329 billion – almost eight times higher. However, the average pension has only doubled during this period – from BGN 288 to BGN 573, said Hassan Ademov of the MRF.