Average state pension in Bulgaria to rise 3.3% in 2014 if Swiss rule is adopted

By bne IntelliNews October 22, 2013

The average state pension in Bulgaria will rise by 3.3% in 2014 if pensions are indexed under the golden Swiss rule, Bisser Petkov - the head of the national social security institute (NSSI), and labour minister Hasan Ademov told a joint press conference on Oct 21, Dnevnik daily reported. Currently, Bulgaria's monthly state pension averages BGN 297 (EUR 151.8). 

The golden Swiss rule was first adopted in the beginning of 2007 but was then temporarily suspended by as part of plans to stabilise the pension system. The rule enforces annual pension indexation that is calculated as a weighted average of the growth in insurance income over the past calendar year and the national CPI inflation.

Pensions in Bulgaria were last increased in April 2013. The minimum pension rose from BGN 145 to BGN 150 and the average monthly pension grew by some BGN 23.

Petkov and Ademov also confirmed that next year the maximum social insurance income will be raised by BGN 200 to BGN 2,400. This would increase NSSI's revenue from social contributions by BGN 240mn, the two officials said. In addition, the maximum pension would reach BGN 840 (from the current BGN 770), as the cap on it is calculated as a percentage share of the maximum social insurance income (35%, to be precise).

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