Pensions

As of January, there are 2,065,573 pensioners in Bulgaria, with the average basic pension amounting to 835.91 leva, excluding additional supplements. A significant portion of the pensioner population, over 423,000 people, receive pensions below 580.57 leva, while another 390,000 are at the exact minimum of 580.57 leva, which is the lowest pension rate for length of service and age.

As of January 1, 2025, the poverty line in Bulgaria has been raised to 638 leva, marking an increase of 112 leva, or 21.3%, compared to the previous year. This adjustment results in higher social benefits and financial support for people with disabilities, as well as other vulnerable groups. Importantly, these changes take effect regardless of the absence of budget laws.

Increasing the retirement age based on changes in life expectancy or increasing the annual deficit by 0.4% of GDP per year, forever - not for just one year - are the two options of the Greek social security system, per the international organizations. The Labor Ministry has made it clear there will be no change by 2027.

From January 1, 2025, the maximum social security income in Bulgaria will rise to 4,130 leva, as outlined in the draft state social security budget for 2025. This increase follows the current cap of 3,750 leva. Additionally, the minimum social security income for self-employed individuals will also rise, aligning with the minimum wage, which will be set at 1,077 leva starting January 1.

The caretaker government of Bulgaria has proposed an 8-9% pension indexation for July 1, 2025, as part of the draft budget for the State Social Insurance in 2025. According to the proposal, pensions for individuals who retire by December 31, 2024, will be updated based on a percentage determined by the Social Insurance Code.

As of the end of September, Bulgaria had a total of 2,047,000 pensioners, with nearly 46% of them receiving the minimum pension, according to data from the National Social Security Institute. Among these, 811,000 pensioners receive the minimum amount of 580.57 leva, which is granted for length of service and age. This group represents 40% of all pensioners in the country.

On Wednesday, November 27, 2024, retroactive payments will be made to approximately 23,000 pensioners from both the private and public sectors who receive more than one primary pension.

Beneficiaries Include Pensioners Receiving:

Pensions in Bulgaria will be increased by 9.6-9.7% from July next year, as per the Ministry of Finance's latest estimates, which are in line with the Swiss indexation rule. Initially, experts had predicted a smaller increase of 8.7%. As a result, the minimum pension is expected to rise to approximately 636-637 leva.

The cumulative increase in pensions over the last three years will significantly exceed 13%, Deputy Labor and Social Security Minister Panos Tsakloglou said in an interview with the Athens-Macedonian News Agency on Sunday.

Nearly half of Bulgaria's pensioners are at risk of poverty and social exclusion, as highlighted in the European Commission's pension adequacy report. Data for 2022 reveals that 45.5% of individuals aged 65 and older in the country face this concerning situation.