The planned changes to Bulgaria’s pension system will affect the so-called COVID supplement of 60 leva (30 euros), which will be deducted before the application of the expected 7.8% pension increase, according to former Social Minister Hasan Ademov. He clarified that the supplement will not be taken away from current pensioners, but will no longer be included in newly granted pensions after July 1.
Ademov explained that during the upcoming pension update under the Swiss rule, the 60 leva component will be excluded from the base used for indexation. He argued that the fiscal impact of the measure is relatively small compared to the scale of the social security system, estimating the effect at around 12 million euros over six months.
“On the one hand, the principles of social security are followed. On the other hand, the fiscal effect is insignificant against the backdrop of the multi-billion social security budget,” Ademov said.
He also stressed that vulnerable groups should not face reductions in already acquired rights, noting that such changes are politically and socially sensitive. In his view, the broader debate reflects efforts to stabilize public finances amid pressure over a possible excessive deficit procedure and rising state expenditures.
