The Bulgarian government will increase pensions by 7.8% from July 1 and will raise social contributions by 5% from August 1. There will be cuts in public administration spending.

The Bulgarian government announced on Tuesday an economic measures package that includes an increase in pensions and social contributions, but also cuts in public administration spending. The Minister of Finance, Galab Donev, stated that pensions will be increased by 7.8% starting from July 1, through the application of the indexing mechanism known as the 'Swiss rule', which adjusts pensions annually based on inflation and the average salary. Additionally, the minimum thresholds for social contributions will be raised by 5% from August 1, and the income ceiling subject to these contributions will be raised to 2,300 euros. The measures require the approval of Parliament, where the governing coalition has a majority.

The minister assured that taxes remain unchanged and that all social payments are guaranteed. Starting from September 1, the government will implement measures to reduce public spending, including cuts of approximately 10% in salary and social contribution budgets, without affecting employee salaries. The reduction will come from restructuring the administrative apparatus. It is also intended to eliminate automatic salary increases for officials and other categories in the public system. The minister criticized the previous administration for the financial methods used, which led to a budget deficit of approximately 1.75 billion euros.