Bulgarian Social Security
Our tax guide for freelance contractors working in Bulgaria
Social security contributions are obligatory and are paid partly by the employer and partly by the employee. These contributions include elements relating to pension, general sickness and maternity, accident, unemployment, health insurance, and, for employees born after 1st January 1960, a private pension fund for additional mandatory pension insurance. Employers’ contributions are levied on the employee’s gross remuneration up to an annual ceiling of BGN 24’000. The total rate of the employers’ contributions is 19.5% for employed individuals, although certain categories of labour are subject to higher rates. In addition, the employer must pay between 0.4% and 1.1% (again dependent on the type of work) to the Labour Accident and Vocational Sickness Fund. Finally, employers have to contribute 0.5% to the Fund for Guaranteed Receivables of Employees.
Employees’ contributions are payable on the gross remuneration subject to an annual amount of BGN 24’000.- The total rate of employees’ contributions is 13% and the contributions are deductible for income tax purposes. The contribution base for self-employed individuals is determined by the individuals themselves, but minimum (BGN 2’880) and maximum amounts (BGN 24’000) apply. The contributions are payable to the Health Insurance Fund and the Pension Fund and, if the self-employed individual was born after 1st January 1960, he/she must also pay to a universal pension fund. The total rate of contributions is 28% but the self-employed individual may also opt to insure him-/herself against further risks covered by the social security system in which case they have to pay an extra 3.5% contribution.