Bulgaria Boosts Minimum Pension to BGN 580

A significant shift in Bulgaria's pension landscape is on the horizon, as the minimum pension for service and age is slated to surge by 11% under the Swiss rule, reaching BGN 580 starting July 1, 2024. Alongside this increase, widow's supplements are also expected to see a rise, as per insights from "Sega."

Effective January 1, there's an uptick in the maximum insurance income to BGN 3,750, marking a nearly 10% rise. However, the pension ceiling remains unchanged, capped at BGN 3,400.

Furthermore, adjustments in sick leave payments are anticipated. Employers will receive one day of relief, now responsible for covering the initial two days instead of three. The National Insurance Institute will initiate payment from the third day onwards.

The draft budget for the state social insurance received approval from the National Insurance Institute's Supervisory Board during its Tuesday session.

Notably, the amendment holds significance for the 681,412 individuals receiving widow's supplements. Commencing July 1, 2024, the percentage of deceased spouse's pension is set to climb from 26.5% to 30%. This marks the first percentage increase since 2011, aligning with annual pension updates. However, fewer pensioners will be significantly affected by this change. Current data reveals 783 individuals receive precisely BGN 3,400, while 338 receive more due to supplementary benefits.

Despite requests for alignment with the minimum wage of BGN 933, the budget doesn't foresee an increase in the maternity allowance for the second year, maintaining it at BGN 780.

Additionally, unemployment compensation remains unchanged, ranging from a minimum of BGN 18 to a maximum of BGN 85.71 per day.

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