Reform of the minimum income scheme

The minimum income scheme reform aims to improve the adequacy and coverage of the minimum income scheme in Bulgaria.

As a first step of the reform, Bulgaria adopted legislative amendments in 2021, which provide for the gradual increase of the minimum income thresholds for all potential beneficiaries of the minimum income scheme until 2024.

The next step was publication at the end of 2022 of a report by the Ministry of Labour and Social Policies assessing the minimum income scheme and recommending how to: 

• expand its effective coverage;
• enhance its targeting;
• incentivise the take-up of gainful employment;
• improve linked activation measures through the PES;
• reduce the administrative burden for the individuals.

Bulgaria also introduced legal amendments which aim to  address the fragmentation of the current legislation in the area of social benefits, services and support by codifying the relevant legislation.

They introduce automatic annual updates of the minimum income thresholds based on the at-risk-of-poverty threshold, changes to the eligibility criteria of the minimum income scheme and legislative amendments to define and improve the activation of the economically inactive persons.

The implementation of the reform has been completed.

Additional links:

• https://mlsp.government.bg/zakonodatelstvo-3
• https://www.mlsp.government.bg/reforma-na-sistemata-za-minimalen-dokhod
• https://www.mlsp.government.bg/uploads/41/test/doklad-analiz-mlsp-1.pdf