The Supervisory Board of the National Social Security Institute is discussing the draft budget of State Public Insurance for 2027. The document envisages higher pensions and benefits, an increase in the maximum insurable income, and changes to support for mothers who return to work before the end of the second year of leave.
The draft has not yet been finally adopted. After it is reviewed by the Supervisory Board, it will be discussed by the National Council for Tripartite Cooperation, approved by the Council of Ministers, and voted on by the National Assembly.
Changes to insurable income
The maximum insurable income is expected to rise from €2,300 to €2,400. The minimum insurable income for self-insured individuals is set at €660, equal to the planned minimum wage for 2027.
The minimum insurable incomes for the main economic activities and occupational qualification groups will increase by 6.4% from January 1. For managers, the amounts will range between €996 and €1,375; for specialists – €879; and for machine operators and assemblers – €703.
Social security contribution rates will remain at their current levels. For civil servants and those employed under the Judiciary Act, a change is envisaged in the distribution of contributions between the insurer and the insured person in the “General Sickness and Maternity” and “Unemployment” funds, at a ratio of 60:40.
Higher pensions and benefits
From July 1, 2027, pensions are to be adjusted under the Swiss rule. The draft budget provides for an expected increase of between 7 and 8 percent. The minimum pension based on length of service and age is expected to reach €374.62, while the maximum pension will be €1,874. The average pension is expected to rise to €587.70, compared with €543.46 in 2026.
The minimum daily unemployment benefit will increase from €9.21 to €13, while the maximum will rise from €54.78 to €60.76. Maternity benefits during the second year are expected to reach €450.
When returning to work early, mothers will receive 75% of the benefit for raising a child up to the age of two, instead of the current 50%. The one-off benefit upon the death of an insured person will increase to €660, compared with €276.10 currently.
Pension expenditure exceeds €14.6 billion
The total planned expenditure under the State Public Insurance budget amounts to just over €16.5 billion. More than €14.66 billion has been earmarked for pensions, which according to the estimates is close to 10.4% of the projected gross domestic product for 2027.
When presenting the draft state budget, Finance Minister Galab Donev described it as the “budget of coming to one’s senses”. The final parameters of the public insurance budget will depend on decisions by the government and parliament.
Sources: bnrnews.bg