site.btaGovernment Approves Draft Social Insurance Budget, Average Pension to Reach BGN 883.14 in 2024

At an extraordinary meeting here on Friday, the Council of Ministers adopted a 2024 Social Insurance Budget Bill, the Government Information Service reported. According to the draft budget, the average pension will reach BGN 883.14 next year.

As of July 1, all pensions allocated by the end of 2023 will be updated by 11%, and the minimum pension will be increased to BGN 580.57 from the current BGN 523.04. The maximum amount of a person's one or more pensions remains BGN 3,400. The social pension for old age will be raised to BGN 307.07.

The payment of all types of pensions and supplements to them will be covered by BGN 21.6 billion. The planned expenditure is by BGN 2,440 billion (12.7%) more than in 2023.

As of January 1, the minimum insurance income of self-insured persons, farmers, and tobacco growers will become BGN 933 from the current BGN 780. The maximum insurance income for all insured persons is raised to BGN 3,750 from BGN 3,400.

The maximum daily amount of the monetary compensation for unemployment will become BGN 107.14 from the current BGN 85.71. 

The compensation for child care for children up to 2 years of age and for children up to 8 years of age for the father (adopter) remains unchanged at BGN 780. The maximum amount of pensions received also remains the same, BGN 3,400.

As of July 1, the supplement from a deceased spouse's pension will become 30% from the current 26.5% of the pension(s) received by the deceased.

Under the bill, the first two workdays of a worker's temporary incapacity are to be paid by the insurer and from the third day, by the state public insurance. This will reduce the businesses' costs for monetary compensations for temporary incapacity.

Earlier on Friday, the Cabinet approved the 2024 State Budget Bill and the updated medium-term budget forecast for 2024-2026.