site.btaGovernment Approves 2025 Public Social Insurance Budget Bill

The average pension in 2025 will reach BGN 975.18, it is foreseen in the 2025 public social insurance budget bill, which was approved by the Government, the Government Information Service said Monday. Year-on-year the average pension is expected to rise by 10.4%. The rise is well above the 2025 projected average annual inflation rate of 2.4%, meaning the purchasing power of pensioners will rise, the press release reads. 

The bill provides that from July 1 all pensions granted until the end of 2024 will be updated under Article 100 of the Social Insurance Code by 8.6%. From the same date, the minimum amount of the retirement pension for full retirement will rise from BGN 580.57 to BGN 630.50. The maximum amount of one or more pensions will remain at BGN 3,400. From July 1, 2025, the amount of the social old-age pension and related pensions and supplements will also increase by the percentage set under Article 100 of the Social Insurance Code.

In 2025, third category women workers will be able to retire if they are 62 years and 4 months old and have 36 years and 8 months of pensionable service. For men, the requirements will be 64 years and 8 months of age and 39 years and 8 months of pensionable service.

In 2025, BGN 24,103.6 million are earmarked for the payment of all types of pensions and their supplements. The expenditure is BGN 2,499.6 million or 11.6% more than in 2024. The total amount of expenditure under the consolidated budget of the state social insurance for 2025 is nearly BGN 27.4 billion. 

As of April 1, 2025, the minimum insurable income for self-insured persons will increase from BGN 933 to BGN 1,077. From the same date, the maximum insurable income for all insured persons will increase from BGN 3,750 to BGN 4,130.

The amounts of all social insurance contributions and the ratios of their payment between the insurers and the insured persons, as well as the minimum and maximum daily amount of the unemployment benefit, remain unchanged. The amount of the benefit for raising a child up to the age of 2 and for raising a child up to the age of 8 by the father (adopter) also remains unchanged and in 2025 will be BGN 780.

The bill provides for a change in the conditions for receiving a benefit for pregnancy and childbirth, for raising a child up to 2 years of age, for adopting a child up to 5 years of age or for raising a child up to 8 years of age. It applies to cases in which the parents take the leave and cash benefits referred to above under one legal relationship while working under another employment contract.

From July 1, 2025, the mother or father caring for a child will be able to receive any of these payments in full, provided that they are not engaged in employment for which they are insured for sickness and maternity. The rationale for the change is that maternal and parental leave are targeted and granted to working parents and adoptive parents to care for children in a family environment. 

If parents are employed, they retain the right to a benefit for not using the leave for pregnancy and childbirth, for raising a child up to the age of 2 or for adopting a child up to the age of 5. In this case, they will receive 50% of the amount they were receiving as an allowance before they returned to work.