Social law

The Minister of Labor and Social Policy Bisser Petkov and his Azerbaijani counterpart Sahil Babayev signed a Pension Agreement between Bulgaria and Azerbaijan, the Social Ministry press center announced.

The government has approved the bill on 2020 state social security budget, the government press office reported. The bill envisages increase in pensions by 6.7% as of 1 July next year. The average pension will reach BGN 412.28, which is BGN 31 more compared to 2019.

The Labor Ministry is processing a plan for retirees to secure the payment of a temporary auxiliary pension immediately after their application for a main pension has been approved, so as to reduce waiting times and ease the hassle that thousands have to go through upon retirement.

The Labor Ministry's redrafting of the social security system is expected to bring about an increase not only in auxiliary pensions but main pensions too for thousands of citizens.

From July 1, 2020, pensions will increase by 6.7 percent, according to the draft budget of the State Social Security for 2020.

Expenditures for pensions will be with BGN 729 million more than the allocated for this year. The pension ceiling is not expected to increase and remains at BGN 1,200.

Nearly half a million pensioners stand to enjoy an average increase of 52.2 euros per month to their auxiliary pensions, in accordance with the recent Council of State decisions.

From July 1, 2020, pensions will increase by 6.7 percent, according to the draft budget of the State Social Security for 2020.

Expenditures for pensions will be with BGN 729 million more than the allocated for this year. The pension ceiling is not expected to increase and remains at BGN 1,200.

The country's main social security funds, EFKA and ETEAEP, should brace themselves for a heavy blow from the Council of State's verdicts that sources say will deem a series of key clauses in the 2016 legislation known as the Katrougalos law as unconstitutional.

The Labor Ministry intends to correct a considerable distortion of the social security system that has resulted from the introduction of the Katrougalos law. Leading to unreasonably low new pensions, the law is an incentive for undeclared and low-paid employment.

A spokesman for the International Monetary Fund on Friday expressed the IMF's opposition to the restoration of Greek pension bonuses and its insistence on the need for pensions to be further reduced along with cuts to the tax-free threshold for income.