site.btaHigher Monthly Pension Is Better than Annual Bonus for Christmas, Finance Minister Says

The government's policy is to ensure that pensions are increased lastingly rather than kept low and augmented occasionally by a one-off bonus, Finance Minister Assen Vassilev said on Monday, replying to media questions about possible Christmas bonuses to pensions this year. The news was reported by the Finance Ministry.

Vassilev was adamant: "Former governments would freeze pensions and would try to appease people with a BGN 50 bonus for Christmas. We believe that it is better for people to receive BGN 223 more every month than BGN 50 once a year." The amount of BGN 223 refers to the increase of the minimum monthly pension for contributory service and old age from BGN 300 in 2021 to BGN 523 at present.

Vassilev also noted that the average pension was raised from BGN 432 on December 1, 2021, to BGN 788 on July 1, 2023.

According to the Finance Ministry, the policy of lasting increase of pensions started when the 2021 state budget was revised. An approach whereby pension supplements are incorporated lastingly into the regular pensions was adopted in September of that year at Vassilev's proposal.

As of July 1, 2023, the minimum pension was increased from BGN 467 per month to BGN 523. The average pension rose by 16.8% to BGN 788.10, the ministry added.

Earlier on Monday, Prime Minister Nikolay Denkov said in the southwestern town of Blagoevgrad that the discussion on possible Christmas bonuses to pensioners is not over yet. Commenting on the Finance Minister's remark that no state budget money is allocated for the purpose, Denkov said the matter will be discussed again after the implementation of the state budget until November becomes clear.