site.btaUPDATED Minimum Monthly Wage Goes Up to BGN 933, Poverty Line Rises as of January 1

As of Monday, January 1, 2024, the minimum monthly wage in Bulgaria goes up to BGN 933 from BGN 780. The adjustment was set by a Council of Ministers’ decision in October.

Under the Labour Code, the minimum wage is set at 50% of the average gross wage of the last two quarters of the previous year and the first two quarters of the current year. The new minimum monthly wage raise will increase the income of more than 500,000 working people, Labor and Social Policy Minister Ivanka Shalapatova said a few days ago. 

As of Monday, the minimum social security income for self-employed persons is BGN 933, and the maximum is BGN 3,750. In the new year, the minimum daily unemployment benefit will increase from BGN 85.71 to BGN 107.14. This was set with the adoption of the 2024 budget bill for the State Social Insurance by Parliament on second reading. It was also decided that the first two days of a sick leave will be paid for by the employer, and from the third day on, it will be paid for by the State Social Insurance. Until now, employers had to pay for the first three days of a worker's sick leave.

The poverty line in Bulgaria has been raised from BGN 504 to BGN 526. Some 800,000 Bulgarians from vulnerable groups are expected to receive greater financial support in 2024 as a result of the increase in the poverty line. As of 2023, social benefits are determined in accordance with the poverty line.

As of July 1, 2024 all pensions granted until the end of 2023 will be increased by 11% under the so-called Swiss rule. The minimum retirement pension will be BGN 580.57. The maximum amount of one or more pensions will remain at BGN 3,400. The average pension will reach BGN 833, Shalapatova also said. Also from July 1, survivor benefits will increase from the current 26.5% to 30% of the pension received by the deceased spouse.

The one-off childbirth allowance in 2024 will be BGN 375 for the first child, BGN 900 for a second child, BGN 450 for a third one, and BGN 300 for each subsequent child. The monthly allowances for a child up to the completion of secondary education (and up to the age of 20) remain as follows: BGN 50 for a family with one child, BGN 110 for two children, BGN 165 for three children, and BGN 175 for four children. The allowance increases by BGN 20 for each subsequent child in the family. The child benefit for bringing up a child up to two and eight years of age by the father (the adopter) stands at BGN 780. The income criterion for receiving the benefit will be changed in 2024. Families with an income per family member of BGN 710 will receive the full amount of the aid. Families with an income per family member of BGN 710.01 to BGN 810 will receive 80% of the full aid amount.

The amount of the monthly child disability benefit depends on the degree of disability or permanently reduced working capacity: over 90% - BGN 1,180, from 70% to 90% - BGN 570, from 50% to 70 % - BGN 450.

The amount of the one-off allowance for grade 8 students for the school year 2024-2025 is BGN 300, as set in the state budget. Children in the first, second, third, and fourth grades will also receive BGN 300.