Pension Increase: What Did the National Assembly Decide?
As of July 1, minimum pensions in Bulgaria will be adjusted by 7.8%. The decision was adopted by Parliament at the first reading as part of the amendments to the Extension Budget Act. Thus, the minimum pension amount increases from 322.37 euros to 347.51 euros.
How Does the "Swiss Rule" Work?
"The Swiss Rule" is an indexation mechanism that ensures that pensioners' income follows the economic situation in the country.
The calculation formula includes the sum of:
- 50% of the increase in the insurance income;
- 50% of the consumer price index (inflation) from the previous year.
Why Are Pensions Changing Now?
For 2025, the data shows that the average insurance income has increased by 12%, and the harmonized consumer price index is 3.5%. This necessitates an update of all labor-related pensions granted by the end of 2025, which comes into effect on July 1, 2026.
The changes guarantee social stability despite the lack of an adopted regular state budget, with the indexation being carried out by a decision of the Supervisory Board of the National Social Security Institute (NSSI).