Social security contributions in detail
The employer’s contribution is from 14.12% to 14.82% of the employee’s salary, and the employee’s contribution is 10.58%. For specific types of work (e.g. in dangerous environments), the contributions are higher. The basis for calculation of social security is mainly the employee’s salary, but the basis cannot be lower than the social insurance thresholds, which are individually set for different industries and types of jobs each year and cannot be higher than the ‘maximum social security income’, which is also determined each year. For 2019 it is BGN 3,000 (EUR 1,533.88).
Social security covers the following risks: temporary incapacity for work, temporary reduced capacity for work, permanent disability, maternity, unemployment, pension, and death. Social security contributions are paid until the 25th of the month following the month in which the income accrued. In addition, there is a health insurance contribution of 8% (of which the employer pays 4.8% and the employee 3.2%) on the employee’s salary (subject to the same rules as apply to social security). All social security and health insurance contributions are paid by the employer. The employer withholds the correct amount from the salary and pays it to the state. Note that for the purposes of the graph, we have combined the amounts of social security and health contributions indicated above.
Author: Boyanov & Co
Date: March 2019
Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.