site.btaCaretaker PM: Pensions Will Be Paid with 11% Increase

Pensions will be paid with an increase of 11%, although the so-called "Swiss rule" envisages an increase of only 10%, caretaker Prime Minister Dimitar Glavchev said in reference to the upcoming pensions update from July 1, the Cabinet's press office said on Monday.

Caretaker Labour and Social Policy Minister Ivaylo Ivanov said that he will propose that the pensions update from July 1, 2024 be set at 11% during Tuesday's meeting of the National Social Security Institute's (NSSI) Supervisory Board, as it was adopted by Parliament. The proposal takes into account Bulgarian pensioners' interest to receive a higher update and the necessary funds are provided for this purpose. All executive representatives in the NSSI will vote for an 11% increase.

The Social Insurance Code states that pensions are increased according to the so-called "Swiss rule", but the final decision lies with the Supervisory Board of the National Social Insurance Institution. This creates a legislative possibility for pensions to be updated by a different percentage, although the calculations of the experts of the National Social Insurance Institution show 10%.

The current situation is not a precedent. In 2021, expert calculations pointed to a lower percentage than budgeted and yet the update was implemented at a higher percentage, the release said.