Starting July 1 the minimal pension in Bulgaria would become 85 leva.

Pensions from 85 to 120 leva will be increased by five per cent and those ranging from 120 to 150 leva will rise by four per cent, 24 Chassa newspaper reported.

The changes were presented on June 22 by Labour and Social Policies Minister Emilia Maslarova and Finance Minister Plamen Oresharski.

The Cabinet also introduced changes to the social securities law. According to the new changes, the old-age pensions would be calculated through different formula from the pensions given for length of service.

The changes would affect over 1.6 million people, 24 Chassa said. The increase in pensions would cost the state 68.8 million leva by the end of the year, Maslarova said.

After the increase, the average pension in Bulgaria for 2006 will reach 151 leva, the Labour and Social Policy Ministry said. Since the start of the year, pensions have risen by over 18 over cent.

Until recently the pensions of many professionals were below the poverty line despite the fact they had 38 to 40 years of experience, Maslarova added.