site.btaNo Plans to Raise Retirement Age, Says Social Policy Minister

Bulgaria's Minister of Labour and Social Policy, Borislav Gutsanov, Wednesday ruled out any changes to the country’s retirement age, stating it will remain as currently set by law. “We are determined to keep the retirement age unchanged,” Gutsanov told lawmakers during a sitting of the Parliamentary Committee on Labour and Social Policy, as quoted by his Ministry's press service. He argued that Bulgaria’s life expectancy is among the lowest in Europe, and in such a context, raising the retirement age would be unjustified.

In 2025 the retirement age is 64 y 8 m for men and 62 y 4 m for women (with 39 y 8 m and 36 y 8 m of insurance, respectively). The statutory age increases annually to 65 in 2029 for men and to 65 in 2037 for women; minimum insurance periods rise only until 2027.

Addressing questions on pension contributions, Gutsanov said there will be no increase in the contribution rates for either the first or second pension pillars until at least 2026–2027.

The minister identified the grey economy as a major untapped source of funds for the pension system.

“When a quarter of the economy is in the shadows, that’s an extremely high level. This is where the biggest opportunities lie to secure additional resources for the pension system,” he noted, citing estimates that the grey economy accounts for 25% or more of Bulgaria’s GDP.

Another key issue Gutsanov highlighted was the lack of updates to the social insurance thresholds — a system that hasn’t been revised in over a decade.

“There is a huge discrepancy right now. Many skilled professionals are still registered at the minimum threshold. Let’s not pretend a chief accountant earns a minimum wage,” he said.

Gutsanov emphasized that adjusting the minimum contributory income by profession would be a powerful tool to tackle the informal economy. He added that such a move should be the result of consensus between trade unions, employers, and the Ministry.