site.btaLabour Ministry to Propose Increase of Guaranteed Minimum Income

Sofia, October 1 (BTA) - The Labour Ministry will propose an increase of the guaranteed minimum income (GMI) from 65 to 75 lv, Labour Minister Bisser Petkov told journalists on Sunday. He said that the GMI hadn't been adjusted since 2008 and that some 80 million leva would be needed for the increase.

Petkov recalled that the Labour Ministry has proposed an increase of the means tested criteria for entitlement to child benefits to 450 lv from 400 lv. This is done to prevent the exclusion of working families with lower wages from receiving child benefits.

Petkov attended observances marking the International Day of Older Persons, October 1.

Petkov said that a second increase of the minimum contributory pension to 200 leva will increase the incomes of over 820,000 pensioners.

From July 1 2018, the increase will be by 3.8 per cent, said the Minister.

"We have agreed a recalculation of old pensions and it is a matter of time and concrete steps," said VMRO leader Krassimir Karakachanov.

According to him, the government coalition agreement sets out to increase all pensions and equalize the minimum pension with the poverty line.

According to Karakachanov, putting an end to disability pension fraud will bring in hundreds of million leva in the pension system and the budget.

Some 900,000 Bulgarians are entitled to disability pensions but in more than 400,000 cases the genuine physical condition doesn't correspond to the disability evaluation.

The pensioners are unhappy with the increase of the minimum contributory pension and are demanding an adjustment of all pensions.

Dimiter Kissimov, Chief Secretary of the Bulgarian Association of Pensioners, told BTA that the increase to 200 leva is a compromise from the initial pledge of the United Patriots for an increase to 315 leva, as much as the poverty line.

Pensioner organization will insist on seeing through this promise and for an adjustment of all pensions by 22 per cent, as much as the two-step increase of the minimum contributory pension. Pensioners want that laid out in the 2018 budget, otherwise they threaten with protests.

They will continue to insist on legislation for older persons which sets out their rights and back a BSP-sponsored bill.