Bulgaria: Changes in Social Security and Tax Legislation 2021

February 2, 2021
2 mins read

Here are some changes to note:

National Minimum Wage

 

From 1 January 2021, the minimum monthly wage increased to 650 BGN per month.

As a result, the minimum hourly wage is 3.92 BGN, for those working 8 hours per day, 5 days a week.

 

Social Security

 

As of 1 January 2021, the contributory income’s minimum monthly amount for self-insured persons is 650 BGN.

For 2021 the amounts of social security contributions remain the same. They are as follows:

  • Fund “Pensions” rate is 19.8% for employees born before 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 %.

 

Employers are obliged at for their own expense to create an additional social security contribution for the Industrial Accidents and Occupational Diseases Fund. This is typically within the range of 0.4% to 1.1%. The exact amount depends on the group’s main economic activities in Bulgaria.

In addition, all persons born after 31 December 1959 are insured for a supplementary pension at a universal pension fund. The rate of supplementary compulsory retirement insurance is 5 %.

 

Food Vouchers

 

As of 1 January 2021, the tax-free amount of food vouchers increases from 60 to BGN 80*.

Employers will be able to increase the number of food vouchers they provide to their employees.

 

New Starters

 

When an individual has entered into an employment contract and commenced work for the first time, they are free to use their paid annual leave after 4 months of service. Previously this was 8 months of service.

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