2024-05-10 11:38:18
The increase in pensions from July 1 may be 10%, not 11%, as laid down in the State Social Security budget for this year.
The reason lies in the officially reported lower inflation than forecast estimates.
The proposal is contained in a draft decision of the Supervisory Board of the National Social Security Institute, BNR writes. The Council meeting is scheduled for May 14.
The updating of pensions granted until December 31 of the previous year is done according to the so-called Swiss rule with a percentage equal to the sum of 50 per 100 of the growth of inflation and 50 per 100 of the growth of the average insurance income.
In the Budget of the State Social Security for this year, it was calculated that according to data from the macroeconomic autumn forecast of the Ministry of Finance, according to this formula, the growth of pensions from July 1, 2024 should be 11%.
For this purpose, over BGN 1.1 billion was provided in the Budget. The calculations were made assuming an increase in the average insurance income last year of 12.9% and an annual average harmonized consumer price index of 9.1%.
However, the National Insurance Institute states that the reported parameters are already clear, which are lower than the estimated ones for both indicators and are 11.3% and 8.6%, respectively. Thus, according to the formula of the Swiss rule, pensions must be increased by 10%, which will cost BGN 100 million less than previously set.