Pensions in Bulgaria Will Increase by 7.8% from July 2026

From July 1, 2026, all pensions in Bulgaria will be increased by 7.8%. This measure is part of the current year's budget and will directly affect the income of over two million pensioners in the country. The increase has been implemented according to the so-called Swiss rule, and taxes remain unchanged.

The new pension amounts include:

• The minimum pension for insurance length and age will reach 347 euros, which is about 678 leva.
• The average pension will rise to approximately 556 euros, roughly 1090 leva.
• The maximum pension limit remains unchanged — 1738.40 euros or 3400 leva, and will be maintained at this level until 2028.

What is the Swiss rule The Swiss rule is a mechanism for annual pension indexation in Bulgaria, introduced through the Social Security Act. It ensures a percentage increase based jointly on inflation from the previous year and the growth of the average insured income, aiming to prevent pensions from lagging behind prices and incomes.

The change will be most noticeable for the lowest pensions, as until July 1, the minimum was 322.37 euros (630.50 leva). After the increase, it will become 347 euros.

At the same time, the maximum pension size, the so-called ceiling, will remain unchanged — 1738.40 euros, expected to stay at this level until 2028. This means that people with already reached maximum pension levels will not receive an additional increase, even if a higher new entitlement is granted.

Tax and budget measures The 2026 budget maintains the current tax policy — the flat tax remains at 10%, and the health insurance contribution remains the same. At the same time, a salary cap will be introduced for the public sector, along with strict measures for fiscal discipline. Social payments to vulnerable groups will not be reduced.

All new pension amounts will come into force from July 1, and pensions granted until the end of this year will also be re-calculated with the new mechanism.

This increase is especially important for many households currently coping with high prices of basic goods and services, and the topic of the purchasing power of pensions remains one of the current issues in society.

Source: Plovdiv24.bg