2015 – Reforms & Innovations
2015 starts with new hopes and expectations for positive results in economic and financial terms in Bulgaria especially compared to the previous year. Many specialists predict that this will be the year of initiating important state reforms and implementing innovative solutions that will create flexible and adaptive economic conditions based on proper and just social relations.
What is changing with the beginning of 2015?
• Minimum monthly remuneration
The minimum monthly remuneration that represents an extremely important factor in macroeconomic as well as social aspect increases from BGN 340 to BGN 360 from 01/01/2015. Another BGN 20 increase will take place on 01/07/2015 when the figure will reach BGN 380. This innovative approach of the minimum monthly remuneration increase aims at reducing the gap between the actual figures in many sectors and the minimum official state figures.
• Pension reforms
An important change related to pensions and social innovations is the calculation of welfare payments on the basis of the social security income and inflation. As a result, the size of all pensions will increase on 01/07/2015. Besides that, there is an increase in the pension labor period in 2015 to 35 years for women and 38 years for men (a 4-month increase) in “frozen” pension age figure. These measures are expected to provide proper and just social relations simultaneously resolving partially some demographic problems.
• Social Security reforms
Important social security changes as part of the government program for reforms and innovation come into effect as well. Apart from the widely disputed change in additional social security fund authorization, the following changes have been introduced as well:
- The maximum social security income threshold increases from BGN 2,400 to BGN 2,600
- The minimum non-levied labor income threshold of BGN 340 is no longer valid
- New minimum social security thresholds are introduced for 42 economic activities
2015 does seem to be bringing innovations and reforms, but whether the plans for such improvement in economic terms will be practically realized in Bulgaria is still doubtful. What is certain, however, is that currently there are readiness and willingness for this.