Parliament passed Friday on first reading amendments revising the 2007 Public Social Insurance Budget Act which increase pensions granted prior to December 31, 2006, by 10 per cent, effective October 1, 2007, and reduce social insurance payments by three percentage points. The amendments were passed in a 126-1 vote, BTA reports.

With the changes the average monthly pension is expected to reach 184 leva (roughly equal to 92 euro).

This is the second time this year when pensions are increased by 10 per cent, after the first rise on July 1.

The social insurance burden is reduced by a total of 3 per cent. Pension contributions for people born before January 1, 1960 become 22 per cent from 23 per cent, while for those born after that the percentage becomes 17 per cent instead of 18 per cent. The Unemployment Fund contributions are cut by 2 per cent, from 3 per cent to 1 per cent.

The rise of pensions will be financed out of a public social insurance budget revenue collection in excess of the target and expected savings on public social insurance budget expenditures. The rise will require an extra 1,212.2 million leva, which will have to be offset to the public social insurance budget.

The National Assembly voted down the other two bill amending the 2007 Public Social Insurance Budget Act, moved by the opposition Bulgarian People's Union and the United Democratic Forces.