Budget for the State Social Security Fund Adopted; Pensions Remain Stable, Contributions Rise from August

The Parliament approved in second reading a bill for the budget of the State Social Security Fund (SSSF). This ensures funds for the regular payment of pensions, sick pay, unemployment benefits, and maternity benefits in the coming months, with the main parameters preserved compared to what the government proposed, according to Plovdiv24.bg.

What is planned for pensions? The new budget guarantees the full payment of pensions increased on July 1, which are up 7.8%. The average pension in the country is expected to reach 543 euros, meaning an increase of 45 euros or 9 percent compared with the previous year. The minimum pension for insured persons based on length of service and age rises to 347.51 euros.

Contribution increases from August 1. Members of Parliament approved an increase affecting workers and employers: the minimum insured income is aligned with the minimum wage and from August 1 becomes 620.20 euros. At the same time, the committee supported measures to combat the informal sector, including new minimum insured incomes by economic activities and professions, as well as raising the maximum insured income to 2300 euros.

Comment from the minister and the goals. The Minister of Labour and Social Policy, Natalya Efremova, explained that the minimum insured income should be updated according to legal requirements and should not be lower than the minimum wage, which for 2026 is 620.20 euros. She noted that the minimum insured incomes by economic activities are updated annually, but in the last ten years they have not been updated, which has led to current positions in 86 economic activities.

Efremova added that minimum incomes are an important tool to prevent evasion of social security contributions. She expressed support for measures to support parenting in the 2027 budget, including a package of measures to assist families with young children, as they more closely consider approaches to maternity benefits.

Unemployment benefit, however, is not social assistance but an insurance payment that replaces lost earnings. The maximum amount of the benefit and examples of cases were clarified by Efremova, with the protective minimum daily amount at 9.21 euros and the maximum daily amount at 54 euros for about 2,000 people.

The law awaits final approval in the plenary hall of the National Assembly for the changes to take effect.

Source: Plovdiv24.bg