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From 1 July, the purchasing power of pensioners will increase due to the modernization of pensions with a record 5.7%. This was calculated by the Minister of Labor and Social Policy, Bisera Petkov, before Nova TV.
Last year the increase was 3.8%, and it was significantly higher this year, the minister said, recalling that the increase is based on a formula that includes half of the projected inflation for the year and half of the rise in insurance income. This year, the expected inflation is 3%, which means that the increase compensates for the loss of purchasing power and actually gives boost, he commented, adding that in absolute terms the increase may seem insufficient.
The minimum retirement pension will increase from BGN 207.6 to BGN 219.43 and the average amount of BGN 360 will increase by BGN 23-24.
From July 1, 41,000 people, limited by the ceiling, will receive their pensions in real terms, Petkov said. The reason is that the pension ceiling rises from BGN 910 to BGN 1,200.
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