Pensions are to be raised by 10 per cent per October 1 2007 and the social security taxes (DOO) to be lowered by three per cent, Bulgarian Parliament decided with 126 to one votes.

The changes also foresaw in raising the minimum pension insurance from 93.50 leva to 102.85 leva, Bulgarian National Radio said.

Taxes towards the pension fund would be lowered by one per cent and those towards the unemployment fund by two per cent.

Parliament rejected the proposals by Evgenii Zhekov and Borislav Bulgarinov of the Bulgarian People's Union (BPU) for higher reductions of the pension fund taxes.