[size=75:3ezfpxcs]Standart news 26 January 2010

Labour Ministry Mulls over Old Age Tax
Targets are people over 75 and retirement homes


In 2012 Bulgarians may start paying another old age tax. The tax will form 0.4% of the salary and will be divided between the employer and the worker. This is one of the ideas of labor and social policy minister Totyu Mladenov for financing the pension system. The tax money will be deposited in a special fund at the National Social Security Institute. The fund will pay bonuses to pensions of people who are over 75. Part of the means will be invested in building modern retirement homes. The new old age tax will be part either of health insurance or of retirement insurance premiums. It is possible the tax to be accumulated in a private fund.
Bulgaria's social ministry is considering also two options for equal retirement age for men and women - 63 or 65. Experts recommend the first one. If it is adopted as of 2012 Bulgarian women will retire at 60.