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CITUB proposes a package of changes that will lead to an increase in all pensions in Bulgaria. The proposals will achieve a minimum pension of BGN 300, a maximum pension of BGN 1,440, a 10 percent increase in pensions from BGN 300 to BGN 369, and a 5 percent increase for the rest. This was told to BTA by CITUB national secretary Asya Goneva.
CITUB proposes to increase the basic parameters of the system’s input as of January 1, 2021, since the increase is based on the percentage increase in the minimum wage set by the government at 6.56 percent.
The union’s proposal is that the minimum insurance income for the self-insured is increased from BGN 610 to BGN 650, as planned, the minimum insurance income for tobacco farmers and growers to reach at least BGN 450, because according to Asya Goneva, there is no political will at this time. to become 650 levs, as is proper according to trade unionists. The maximum insurance income should also be increased by 6.56 percent proposed by CITUB, bringing it to BGN 3,200. Therefore, the maximum pension will become 1,440 BGN.
According to Goneva, these changes will have a decent effect on revenue, around BGN 80 million.
The minimum amount of pensions must be linked to the minimum wage and become 45 percent, and the calculations show that with this commitment percentage, the minimum pension must become BGN 292.50 with a minimum wage of BGN 650, but by CITUB. “They will not be angry, but they will be satisfied if the politicians, who have BGN 300 in their program, round this number to BGN 300 for the minimum pensions,” said Asya Goneva. This will provide an average 20 percent increase in pensions for at least 1 million and 100,000 people.
CITUB proposes new rules for next year and when modernizing pensions – a differentiated increase under the Swiss rule, since pensions between the new minimum amount, which is expected to be BGN 300 and the poverty line – BGN 369, which will be updated more significantly – by about 10 percent.
The CITUB wants the maximum pension to be 45 percent of the new amount of the maximum insurance income and, therefore, to become BGN 1,440, which will allow more than 25,000 pensioners, who are currently cut from the ceiling, to receive the full amount of the pension and will remain as a dozen. – Fifteen thousand people, who will be limited by the new maximum amount, predicts the insurance expert.
CITUB proposes that changes be made in government and parliament to stimulate consumption and improve the adequacy of pensions. “Only through income under these conditions can we create such purchasing power that through consumption it is easier to get out of the crisis that awaits us,” said Goneva.
CITUB definitely does not give up on the idea of increasing the burden of each insurance year: this proportion will increase to 1.5 from the current 1.2 percent. If 1.3 percent is proposed, the expectations are for a 10 percent increase on each pension.
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