Social security in Bulgaria
Social security is a system that guarantees financial protection against major life risks, work-related accidents and their consequences such as disease, unemployment, old-age and needs for nursing care to the employees.
The aim of the social security system is to guarantee a stable standard of living to everyone. The Bulgarian social security system covers the following risks:
- General disease,
- Work-related accidents,
- Occupational disease,
The general principle is that each employee is automatically compulsorily insured.
The employer is obligated to report the conclusion of an employment contract within a time period of three days to the National Revenue Agency. Besides, he must pay the social security contributions until the 25th of the following month (Article 7 (1) of the Social Security Code (SSC), Bulgarian: Кодекс за социално осигуряване). These contributions must be paid to the tax office’s account.
The social security contributions are generally calculated as follows:
- Basic social security (unemployment insurance etc.): 17,3 % of the gross salary;
- Pension insurance: 5 % of the gross salary;
- Health insurance: 8 % of the gross salary.
The employer has to pay 60 % of the insurance contributions, the employee the remaining 40 %.
Further, the employer has to bear the costs of the occupation accident insurance that amounts between 0,4 % and 1,1 % of the gross salary, depending on the job.
The employee’s insurance contributions are calculated according to the received gross monthly remuneration (including the charged and not paid gross labour remuneration) or according to the gross labour remuneration that has not been charged – both for one month (Article 6 (3) of the social insurance code). The maximum security income amounts to 2600 BGN (2015).