There are minimum monthly insurance thresholds for the payment of health insurance and social security in Bulgaria.
Firstly, these thresholds are different for each business and profession. They serve as a basis for calculating the social security contribution.
Secondly, the social insurance contributions are due on the gross monthly remunerations received, but at least on the minimum contributory income.
Thirdly, in respect of persons for whom no minimum contributory income is set, social insurance contributions are due on the minimum monthly employment salary for Bulgaria but not exceeding the maximum monthly amount of the contributory income.
For 2019 the amounts of insurance contributions are:
- Fund “Pensions” rate is 19.8% for employees, born prior to 1 January 1960 and 14,8 % for those born after 31 December 1959
- Fund “Common Disease and Maternity” rate is 3.5 %
- Fund “Unemployment” rate is 1 %
- Fund “Health Insurance” rate is 8 %
The social insurance contributions for pensions, unemployment, common disease and maternity are divided in the following ratio:
- for employees, born prior to 1 January 1960 – 10.58 % at the expense of the employee and 13.72 % at the expense of the employer
- for employees, born after 31 December 1959 – 8.38 % at the expense of the employee and 10.92 % at the expense of the employer
The health insurance contribution for 2019 is divided in the following ratio:
- 3,2 % at the expense of the employee
- 4,8 % at the expense of the employer
Moreover, employers are obliged to make for their own expense an additional social security contribution for the fund “Occupational accidents and disease”. It is within the range of 0,4% to 1,1%. Its exact amount depends on the groups of main economic activities adopted in Bulgaria.
All persons born after the 31 December 1959 have a compulsory insurance for a supplementary pension at a universal pension fund.
The rate of supplementary compulsory retirement insurance is 5 %.
For 2019 the contribution to universal pension funds is divided in the following ratio:
- 2,2 % at the expense of the employee
- 2,8 % at the expense of the employer
In addition, there is a maximum level for paying health insurance and social security in Bulgaria. It is valid for all activities and professions. For 2019 this maximum threshold is in the amount of 3 000 BGN (= 1 533,87 €).
The deadline for submission of social security contributions is no later than 25th day of the month following the month during which the work is performed.
For more information or legal assistance in conjunction with the tax regime in Bulgaria please do not hesitate to contact us by e-mail: email@example.com or call us on: +359 2 851 72 59.