Updated last 18.06.2025
General information
- The work provided by an employee is to be compensated. Remuneration represents the cash payment by the employer to the employee for the provided work-related activities.
- The amount and structure of remuneration are also linked to the position held by the employee. To this end, employers apply the already introduced National Classification of Occupations and Positions (NCOP-2011), which ensures comparability and links positions to the required education and qualifications.
Minimum salary and minimum insurance income
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To protect employees performing the lowest-qualified work, a Minimum Monthly Gross Salary has been established, which currently amounts to BGN 1,077[*] (effective as of 1 January 2025, pursuant to Council of Ministers Decree No. 359/23.10.2024). This means that, by law, a monthly gross remuneration (for performing standard work during normal working hours) cannot be agreed at a lower amount.
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In order to protect employees, the legislator has also introduced a Minimum Insurable Income by main economic activities and qualification groups, which obliges the employer to pay social security contributions on income not less than the minimum insurable income for the respective profession. A complete list of positions and the corresponding levels of minimum insurable income can be found here.
Payment of remuneration
- The payment of the remuneration is a fundamental duty of the employer;
- The basic wage is paid in cash (the additional work remuneration could be also paid in kind, if such option is provided in an act of the Council of Ministers, collective employment contract or the worker’s individual employment contract);
- The frequency of payment of the remuneration is agreed between the employee and the employer in the employment contract. The remuneration must be paid in advance or in full twice a month, unless otherwise. The remuneration is paid personally to the employee. By exception, the remuneration may be paid to another individual in which case the employee should provide a written request to the employer. The persons who have the right to receive the remuneration include only close relatives of the employee. Upon written request of the worker or employee, their remuneration shall be transferred to their bank account;
- For employers with 100 or more employees, the remuneration must be paid by bank transfer, pursuant to Article 3, paragraph 1, item 3 of the Law on Restrictions on Cash Payments, except in cases of short-term seasonal agricultural work or seasonal employment of third-country nationals.
Social security contributions
- Any individual who is employed is subject to mandatory social security and health insurance in the country. The employer, in his capacity as an insurer under art. 5 of the Social Security Code (SSC) is obliged to withhold and pay social security and health insurance contributions for his employees on a monthly basis. Social security and health contributions are due on the total monthly gross remuneration of each employee within the minimum and maximum thresholds provided for by law;
- The minimum social security and health insurance income in Bulgaria form 1 January to 31 March 2025 – BGN 933, and from 1 April to 31 December 2025 – BGN 1077 and the maximum from 1 January to 31 March 2025 – BGN 3750, and from 1 April to 31 December 2025 – BGN 4130. This means that if the employee receives remuneration exceeding BGN 4130, he / she will pay social security and health insurance only up to the maximum insurance income – BGN 4130. At the same time the employee may not be insured at gross monthly remuneration of less than BGN 1077;
- Social security and health insurance contributions are allocated by funds. The total amount of the contributions is 32.70-33.40% of the gross remuneration, whereby 18.92-19.62% are at the expense of the employer and 13.78 % are withheld from the monthly remuneration at the expense of the employee.
What do monthly social security and health insurance contributions include (both at the expense of the employer and the employee)[1]?
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14,8 % – 19.8 % to “Pension” Fund (the percentage varies depending on the year of birth of the ensured person);
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5 % for additional obligatory pension insurance (for the born after 1960). For the people born before 1960 no separate insurance contribution is due for additional pension insurance, since it is included in the social security and insurance payment to “Pension” Fund);
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3,5 % to General Disease and Maternity Fund;
1 % to Unemployment Fund; -
0.4-1.1 % to Accident at Work and Occupational Diseases Fund (the percentage varies depending on the economic activity of the company);
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8 % for health insurance.
=> Calculator: Salary under an Employment Contract and All Contributions here.
The calculator is intended for computing the salaries of employees under an employment contract and for calculationg all social security contributions and taxes payable by both the employee and the employer.
| For more information | |
 | Further information for the amount of the social security and insurance contributions is available here. |
Income tax
- Each legal entity, in its capacity as an employer, is obliged to deduct and pay on a monthly basis advance tax for its employees by the 25th day of the month, following the month in which the remuneration was paid (provided for in art. 42 of Personal Income Tax Act (PITA);
- The income tax due on the remunerations received by employees amounts to 10% (flat tax, calculated based on the monthly tax base which is the gross monthly remuneration after deduction of the statutory social security and health insurance contributions). The employer should pay the withheld tax for each of its employees to the respective competent directorate of the National revenue agency;
- Employees’ taxable income includes both the agreed base pay and all other cash and non-monetary payments made during the respective month by the employer or at the expense of the employer, related to the services provided by the employee;
- Non-taxable income in accordance with the Bulgarian legislation is stated in article 24, paragraph 2 of the Personal Income Taxation Act and it includes given to the employees free food, provided in kind, work clothing and personal protection equipment, food vouchers of up to BGN 80[*] per month, additional insurance of up to BGN 60[*] per month, covered by the employer, as well as business trips expenses covered by the employer in compliance with the requirements of the Ordinance on business trips in the country (non-taxable up to the double maximum admissible amount), etc.
When is filing an annual tax return required?
- If the employee’s income is only from employment relations on which advance tax has been withheld by the employer, no obligation arises for the employee to file an annual tax return under art. 50 of PITA.
- However, if the employee receives another personal income, not related to his/her employment relations, such as income from rents, dividends, interests, etc., the person is obliged to file an annual tax return, stating all incomes received during the respective tax year, as of 10th of January and no later than 30th of April of the year following the year for which the return is filed.
| Important to know | |
 | The employer is required to have an keep the following documents, related to the payment and administration of remuneration and social security and health insurance contributions:
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| For more information | |
| More information related to the social security and health insurance of the employees is available here. |
[*] From 1st of January 2026 ownwards, the equicalent value in euros calculated using the official exchange rate shall apply.
[1] The values indicated are for III category positions (additional information on the positions categories is available in the Ordinance on labour categorisation upon retirement.