Bulgarian Pensions: Proposed Adjustment to 10% from Initially Planned 11%

Society | May 10, 2024, Friday // 14:09
Bulgaria: Bulgarian Pensions: Proposed Adjustment to 10% from Initially Planned 11% @novinite.com

The scheduled increase in pensions from July 1 might be adjusted to 10% instead of the initially projected 11%, in line with the State Social Security budget for the current year. This potential alteration stems from the officially reported lower inflation rates compared to earlier forecasted estimates.

According to information from BNR, this proposal is outlined in a draft decision of the National Social Security Institute's Supervisory Board, with a scheduled meeting set for May 14. The adjustment mechanism for pensions granted until December 31 of the preceding year follows the so-called Swiss rule, which entails a percentage derived from a combination of inflation growth and the average insurance income.

The Budget of the State Social Insurance for the ongoing year had initially factored in an 11% increase in pensions from July 1, 2024. This calculation was based on data from the Ministry of Finance's macroeconomic autumn forecast, assuming a 12.9% rise in the average insurance income and a 9.1% annual average harmonized consumer price index.

However, the National Social Security Institute has highlighted that the officially reported parameters deviate from the earlier estimations. The actual figures for both indicators stand at 11.3% and 8.6%, respectively, which necessitates a revision in the pension adjustment. Consequently, according to the Swiss rule formula, the proposed increase in pensions would be set at 10%, resulting in a saving of BGN 100 million compared to the previously allocated budget.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Society » Be a reporter: Write and send your article
Tags: pensions, adjustment, proposed, revision

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria