From January 1, 2025, the maximum social security income in Bulgaria will rise to 4,130 leva, as outlined in the draft state social security budget for 2025. This increase follows the current cap of 3,750 leva. Additionally, the minimum social security income for self-employed individuals will also rise, aligning with the minimum wage, which will be set at 1,077 leva starting January 1.

There will be no changes to the minimum social security thresholds by profession or economic activity, and despite earlier discussions, the rate of social security contributions will remain unchanged. The Confederation of Bulgarian Industrialists and Builders of Bulgaria, along with the Bulgarian Industrial Association, presented the draft budget, which is set to be submitted to the National Assembly next week.

Looking further ahead, the maximum social security income is projected to increase in subsequent years: to 4,430 leva in 2026, 4,730 leva in 2027, and 5,030 leva in 2028. This adjustment means higher pension contributions for individuals with higher incomes.

In addition, pensions will be updated by 8-9% starting July 1, with the minimum pension for old age and social security rising to 631.08 leva from the current 580.57 leva. The exact increase will depend on final data for the consumer price index and social security income for the year, as part of the Swiss rule.

However, the pension ceiling will not be raised, and the modernization of pensions in 2025 is expected to be 8.7%. After this adjustment, increases will be much smaller in the coming years. The maximum insurance threshold was previously raised from 3,000 leva to 3,400 leva in 2022 and to 3,750 leva in January 2024. Notably, 15 EU countries do not have a maximum insurance income for the "old age" pension, and where there is a cap, it is typically four times higher than in Bulgaria.

Source: bTV