22.11.2021

HOW PENSIONS CHANGE FROM CHRISTMAS

From December 25, 2021, important changes in the pension legislation come into force, which will affect the amount of pensions.

The average amount of the pension is expected to reach BGN 573 in January 2022, according to the calculations of the experts of the National Social Security Institute, made at the request of BTA.

From December 25, the percentage for a year of insurance experience, without the so-called conversion increases from 1.2 percent to 1.35 percent. The length of service converted to the third category of work remains with a weight of 1.2 percent. The minimum amount of the pension for length of service and age will increase from BGN 300 to BGN 370. The maximum amount of the received one or more pensions, without the supplements to them, will increase from BGN 1440 to BGN 1500. The social old-age pension will be increased increased from BGN 148.71 to BGN 170.

The expected average amount of the pension in December 2021, not taking into account the one-time additional amount given due to the pandemic and for the period October - December 2021 is BGN 120, is BGN 486.50. The forecasts show that in January 2022 The average amount of pension will be BGN 573, including the payment for the period December 25-31 with the new weight of one year of insurance service and the increases of the minimum amount of pensions for employment, the amount of social pension for old age and "ceiling" of pensions.

These increases will not affect the right to lump sums - the so-called. "covid supplements" of BGN 50 for the period from January to September and BGN 120 thereafter, which were paid and continue to be paid this year. These allowances are given to help all just over 2,067,000 pensioners, regardless of the size of their pension.

The average amount of the pension in 2021, including "covid supplement", is expected to be BGN 537.50 and will increase by about 23 percent compared to 2020. For 2022 the forecast is for BGN 580.50. the people on the "ceiling" of pensions of BGN 1,440 in December 2021 are expected to be 27,500, and in January 2022, when the maximum amount of BGN 1,500 comes into force, the people on the "ceiling" will be 34,000.

In December 2021, the expected number of people receiving a minimum pension is 892,000, the forecast for January 2022 is that the people with a minimum pension will be 1,044,000, which is half of Bulgarian retirees.

At this stage, it is not clear whether pensioners will continue to receive a lump sum supplement to pensions, which is given to support the elderly during the pandemic due to the additional costs of medicines and others.

The caretaker Minister of Labor and Social Policy Galab Donev pointed out that this will be decided by the new National Assembly. His position is that pension income should increase, and it is important to have predictability in this increase.

According to the information contained in the latest bulletin of the National Social Security Institute, the adopted increases will lead to an increase in pensions not only in the short term, but also in the medium and long term. Thus, the average pension for employment per pensioner in 2024 is expected to reach BGN 669.