29.12.2023
IN WHICH CASES IS AN INCREASED AMOUNT OF RETIREMENT BENEFIT OBTAINED
The gross remuneration for determining the retirement benefit is the gross remuneration received by the worker or employee for the month preceding the month in which the legal relationship was terminated, or the last monthly gross remuneration received by the worker or employee, unless otherwise provided.
When determining the gross remuneration from which the compensation is calculated, Art. 17 of the Ordinance on the structure and organization of the salary applies.
There are certain circumstances in which the law makes it possible to receive an increased amount of these benefits. What are these possibilities?
The amounts of retirement benefits apply, as long as no greater amounts are provided for in an act of the Council of Ministers, in a collective labor agreement or in the employment contract.
This means that the parties to a collective labor agreement can agree on larger amounts of compensation, and the law does not limit the maximum amount. Upon termination of the employment relationship, a worker or an employee who has acquired the right to a pension for insurance length of service and age, who is a member of a trade union organization party to the contract or who has joined the concluded collective labor agreement, has the right to compensation in an increased amount, according to the contract.
Larger amounts of compensation under Art. 222, para. 3 of the Labor Code can also be negotiated when concluding an individual employment contract. The parties are not limited in reaching an agreement on the amount of the compensation upon retirement, and there is no obstacle to agreeing on larger amounts of the compensation even after the conclusion of the employment contract - with an additional agreement.
At the present time, Decree of the Council of Ministers No. 31 of February 11, 1994 is still in force in Bulgaria to increase in some cases the amount of benefits under Art. 222, para. 3 of the Labor Code.
According to the cited Decree, upon termination of the employment relationship after January 1, 1993 of a worker or employee from the organizations and units of budgetary support, after having acquired the right to a pension for time served and old age, regardless of the reason for the termination, his compensation under Art. 222, para. 3 of the Labor Code is increased in the total amount of his gross remuneration for a period of six months, when, regardless of the implemented transformations, closure, opening, merger or division of the organizations and units of budgetary maintenance, the worker or employee has worked in the last ten years of his working experience in the same, in terms of the main functions and tasks performed, organization or budgetary support unit.
Pursuant to the same Resolution, retirement compensation under the Labor Code in the amount is also determined for pedagogical and medical personnel, as well as for artistic and artistic-creative personnel, when during the last ten years of their working experience before acquiring the right to a pension for time served and old age have worked in organizations and budgetary support units in the field of education, health care, social care, culture and art.
We pay special attention to the fact that the Decree sets the express condition that the persons have worked in budget support organizations and units, and not in private hospitals, private schools, etc. similar.
Reference:
Art. 1, para. 1 and para. 2 of Decree of the Council of Ministers No. 31 of February 11, 1994 to increase in some cases the amount of benefits under Art. 222, para. 3 of the Labor Code
Art. 222, para. 3 of the Labor Code
Art. 17 of the Ordinance on the structure and organization of the salary
