In October, the increase will average 136 leva, but only for 718 thousand people
The average pension reaches BGN 666 in July, and in the last three months of the year it will be BGN 718.
An additional BGN 60 on the real amount of the pension will be added to the people who retire after June 30, 2022. This is written in the project for updating the budget of the state social insurance, which “24 hours” has. It was approved by the supervision of the National Social Security Institute (NSSI).
Initially, the government proposed that the BGN 60 bonus be included in the amount of pensions granted by the end of June, but the new pensioners would be harmed. Authorities were specifically warned of this injustice by unions at a meeting of the tripartite on Monday.
From 1 July, all employment pensions granted until 31 December 2021 will be increased by 10%. Then the COVID bonus of BGN 60, which is given until the end of June, will be added to them. For 1 million pensioners, the pension will forever include the compensatory supplement, which is individual and is between 1 stotinka and 60 BGN.
“For the pensions for labor activity, which will be granted after July 1, 2022, it is also envisaged to include BGN 60 in the amount of the pension,” reads the reasons for the bill.
Thus, the minimum pension will be raised from the current BGN 370 to BGN 467. By Christmas, it was BGN 300.
The pension ceiling has been increased from BGN 1,500 to BGN 2,000. Now the maximum pension limit affects 33,200 people, and the increase will halve them to 14,400.
The government has also improved with the old-age social pension. Until a few days ago, the proposal was to raise it from 170 to 215 leva. With the bonus, however, so far they received 230 leva, and from July 1 in their pockets would actually go in 15 leva less. Now the budget stipulates that the social pension will be BGN 247.
From October 1, there will be a new increase in pensions. First, the ceiling will be raised to BGN 3,400 and so the limited ones will fall to only 1,000 people. Yes
in just one year the pension ceiling will be raised by a total of BGN 1,900.
From this date, all pensions granted until the end of last year will be recalculated. According to the formula, the average monthly insurance income for the country when the pension is granted is multiplied by the individual coefficient of the person. For the pensions granted until December 31, 2007, the average monthly insurance income for 2007 is taken into account – BGN 398.17. The reason is that then the pensions were last recalculated with the insurance income.
The recalculation now takes into account the length of insurance as of September 30, 2022, 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 – whichever is higher. For all years after 2008, the average income gives a higher percentage. The only exception is in 2010, when income rose by 2.8% and inflation was 3%.
If the pension is granted in 2008, an increase will be applied for the period from 2009 to 2022. This will bring
increase
of 194.3%, the calculations show. (See the table for the increase according to the year of grant.)
The modernization set in this way can raise pensions by an average of BGN 136, but only to about 718 thousand people – 35% of all adults.
The average pension is expected to reach BGN 666 in July, an increase of 23.2%. Without supplements, however, the increase is only 9.4%. In October, the average pension will reach BGN 718.
In June, 1,038,200 Bulgarians will receive minimum pensions, and from July 1 their number will fall to 948,500.
In October, 863,800 people will receive minimum pensions
All this will cost an additional BGN 1.386 billion for 2022.
The draft budget of the state social security will be considered on three pages on Tuesday. Then it must be adopted by the Council of Ministers, which will introduce it in the National Assembly. As “24 Chasa” wrote, the law must be adopted and promulgated by June 20 – the deadline so that the National Social Security Institute can be ready with the pension statements next month. If the vote in the National Assembly is delayed, there are two options – to transfer the increase to a later date in July, or to pay in August.
Since the beginning of the year, pensions have been raised by an average of BGN 73.
The Minister of Social Affairs wants the salaries of the officials to be raised by 10%
The Ministry of Social Affairs will request an increase in the salaries of public sector workers by at least 10% from July 1st with the budget update.
This was announced by the Minister of Social Affairs Georgi Gokov to BNT. Civil servants did not receive an increase in April when the minimum wage was raised.
However, they do not pay their own insurance. All their contributions for pensions and unemployment, as well as for healthcare, are at the expense of the state budget. For people with an employment contract, social security contributions are paid in a ratio of 60:40 by the employer and the employee. As a result, in private companies over 88% of labor costs are for salaries and about 14-15% – for insurance, and in public administration the salary is only 74.78% of total labor costs. However, apart from the social and health insurance of the employees, 23% of the total cost of BGN 26,001 per year falls.
As “24 Chasa” wrote at the moment, 87,233 civil servants benefit from this privilege out of a total of 131,812 officials. The rest are employed under an employment contract and do not have the status of civil servants.
The Minister of Social Affairs also insists on a second increase in the minimum wage this year. His proposal was to raise it from BGN 710 to BGN 770. However, this did not meet with support from Deputy Prime Minister and Minister of Finance Asen Vassilev, because “it is not reasonable to have two increases within a year.”
From July 1, the tax reliefs for families with children are expected to come into force, which will be deducted every 3 months, and not once a year, as before. The NRA will determine the mechanism by which this will happen.
We are also working on the idea that the maximum insurance income should be linked to the average salary, multiplying it by 2.2. However, this will happen next year.
“These support measures are not anti-inflationary, but anti-crisis. They are anti-crisis social measures for Bulgarians and for business – to be able to get through the crisis more easily, “said Minister Gokov. He also denied accusations that they were “in pieces” because they have a common vision. All the proposals of the coalition partners were collected, debated and those on which there was a consensus were accepted, he explained.
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