The Bulgarian government has put forward a draft decree proposing to raise the official poverty line from 638 leva to 764 leva (326 euros to 390 euros), effective from January 1. This proposal, reflecting a nearly 20% increase, has been open for public consultation for a month and is scheduled for discussion this Wednesday by the Commission on Income and Living Standards at the National Council for Tripartite Cooperation.

Currently, about 1.4 million people in Bulgaria, almost 22% of the population, live below the poverty threshold. The poverty line is set annually based on a specific methodology that aligns with the Eurostat survey “Statistics on Income and Living Conditions.” The suggested new poverty line of 764 leva corresponds to this survey’s criteria.

Compared to last year, the proposed poverty line represents a 19.7% rise, adding 126 leva. While the share of people living in poverty has decreased by roughly 75,400 annually, the total number remains significant at 1.4 million.

Social Affairs Minister Borislav Gutsanov’s report on the draft decree highlights that the increase in the poverty line will lead to higher social benefits. These include support under the Social Assistance Act, benefits for disabled persons, and funds for prevention, reintegration, and child protection programs - specifically assistance for children raised by relatives or in foster care. This adjustment is expected to positively affect the most vulnerable and low-income groups in the country.

Despite these developments, trade unions continue to challenge the current methodology for setting the poverty line, urging for an update that incorporates inflation rates more accurately during social partner discussions.