Bulgarian Government to Fund Pension Increases from Infrastructure Projects

The Bulgarian government plans to finance pension increases under the Swiss rule by reallocating funds from infrastructure projects, Labour and Social Policy Minister Borislav Gutsanov announced in Parliament on Thursday. The adjustment, estimated at BGN 417 million, is currently being reviewed by the Finance Ministry, CE Report quotes BTA

Gutsanov highlighted the unified stance among the three ruling political factions, emphasizing their compromises to support vulnerable pensioners. "We have had constructive discussions with Finance Minister Temenuzhka Petkova," he added.

The decision follows mounting pressure from pensioners’ associations, who protested against the initial 2025 State Budget Bill, which proposed only a 5% pension increase—falling short of the expected 8-9% rise dictated by the Swiss rule. The United Pensioners' Unions (UPU) argued that such a move would further erode living standards for nearly 2 million retirees.

Following consultations within the Joint Governance Council, GERB-UDF Deputy Floor Leader Denitsa Sacheva confirmed that the final budget proposal will ensure all pensions increase under the Swiss rule starting July 1, 2025.

The Swiss rule mandates annual pension adjustments based on a formula combining 50% of the previous year’s inflation and 50% of the average contributory income growth.