site.btaBusiness and Labour Unions Support 7.8% Increase to Minimum Pension Effective July 1
Representatives of business and labour unions supported the 7.8% increase to the minimum pension effective July 1 of this year through an amendment to the so-called budget extension act during meeting of the National Council for Tripartite Cooperation on Tuesday.
Representatives of employer organizations, including the Bulgarian Industrial Association (BIA), the Bulgarian Chamber of Commerce and Industry (BCCI), and the Confederation of Employers and Industrialists in Bulgaria (KRIB) supported the proposed amendments to the extension budget, while only the Bulgarian Industrial Capital Association (BICA) refrained from supporting the bill. BICA Chair Rumen Radev said the reason for this position is a matter of principle, as the association believes that pension amounts should be determined based on social security contributions rather than administrative means.
Labour and Social Policy Minister Nataliya Efremova expressed the Ministry’s support for the amendments, introduced by MP Vladimir Rakov of Progressive Bulgaria and a group of MPs.
The aim of the proposal is to ensure that, under an extended budget framework, pensioners receiving the minimum pension, along with all others in the country, will receive a 7.8% increase under the so-called Swiss rule starting July 1.
Over 800,000 pensioners receiving the minimum pension in Bulgaria will receive the updated amount of EUR 347.51 when their July pensions are paid, without having to wait for the adoption of the regular budget for 2026.
The reason for the proposed amendments is that, according to the Social Insurance Code, all employment pensions are adjusted annually as of July 1 using the Swiss rule, but the amount of the minimum pension for the relevant year is determined by a regular law on the state social security budget, and under the terms of an extension budget, this cannot happen, as the minimum thresholds applicable through 2025 are being applied.
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