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Factsheet for measure BG-2022-1/2110 – measures in Bulgaria

Monthly allowance to pensions

Месечна добавка към пенсиите

Country Bulgaria , applies nationwide
Time period Temporary, 01 January 2022 – 30 June 2022
Context COVID-19
Type Legislations or other statutory regulations
Category Measures to prevent social hardship
– Protection of vulnerable groups (beyond employment support)
Author Tsetomila Sabcheva and Luboslav Kostov (Citub)
Measure added 05 January 2022 (updated 12 January 2022)

Background information

The government will allocate additional BGN 750 million (€383 million) to the state social security budget in order to cover the monthly allowance per pensioner. Тhe allowance was decided after registered growth in tax revenues in the state budget for 2021. The allowance was adopted by the National Assembly of the Republic of Bulgaria with unanimous on vote among politicians.

Content of measure

Pensioners are going to receive a monthly allowance of BGN 60 (€31) as additional payment to their pensions for the period January- June 2022. The allowance will be paid to all pensioners, regardless of the pension received, as a support measure to limit the negative effects of the COVID-19 among this vulnerable group.

From December 25 onwards the pensions are increased on average with 12.5%. Thus the minimum pension for length of service and age amounts BGN 370 (€189). Taking into account the adopted allowance of BGN 60 (€31), pensioners are receiving BGN 430 (€220) as a minimum since January 2022. For contrast, the minimum amount received up to December 2021 was BGN 420 (€215). The maximum pension is set at BGN 1,500 (€767) and reach BGN 1,560 (€798) when the monthly allowance is added.

Use of measure

About 2 million pensioners are going to receive a monthly allowance of BGN 60 (€31). The newly elected ruling government coalition aims to increase the minimum pension received. With the adoption of the monthly allowance there will be no pensioners under the national poverty line up to June 2022. The national poverty line is set at BGN 413 (€211) as of 1 January 2022.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Older citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

At the time of adopting the monthly allowance to pensioners there are no media resources reflecting the social partners' involvement in designing, implementing and monitoring the measure.

Views and reactions

At the time of adopting the monthly allowance to pensioners there are no media resources reflecting the social partners' views or reactions on the measure. It is expected that the Confederation of Independent Trade Unions in Bulgaria (CITUB) may probably welcome the increase resulting the adoption of the allowance. At the end of 2021 CITUB insisted on the adoption of such allowance which will be paid to all pensions for length of service and age under amounting below the national poverty line.

Sources

  • 26 October 2021: Пламен Димитров: Настояваме за ръст на доходите още тази есен, предлагаме 22 мерки (knsb-bg.org)
  • 23 December 2021: Единодушно Народното събрание одобри допълнителни разходи и трансфери по държавния бюджет за 2021 г. за сметка на преизпълнението на данъчните приходи (www.parliament.bg)
  • 23 December 2021: Парламентът одобри 60 лв. добавка за пенсионерите от 1 януари и енергийни помощи за бизнеса (econ.bg)
  • 30 December 2021: Добавката от 60 лева към пенсиите в условията на пандемия ще продължи да се изплаща и в периода януари-юни 2022г. (coronavirus.bg)

Citation

Eurofound (2022), Monthly allowance to pensions, measure BG-2022-1/2110 (measures in Bulgaria), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/BG-2022-1_2110.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.