Social insurance rates in Bulgaria (2011-review): highlight to the 1.8 % increase of the contribution to the state social pension fund

As summary the main payroll related contributions and taxes in Bulgaria are:
– Personal Income tax
– State pension insurance
– Additional Obligatory Pension insurance
– State social accidental and professional decease insurance
– Health Insurance

Personal Income tax in Bulgaria is fixed at 10% rate of the total gross income of the employees, decreased by the social contributions paid by the employees and other tax relief’s according to the Personal Income tax Act.

State Pension Insurance in Bulgaria is regulated by the Social Insurance Code. This obligatory Insurance is divided to three sub-insurances:

– Pension Insurance:
– For employees born before 01.01.1960 the rate is 17.8 % from the total gross income. The insurance is divided between the employee at 7.9 % and by the employer at 9.8 %. If the employees are doing special types of labor according to the Bulgaria Labor Code the percentage may be higher.
– For employees born after 31.12.1959 the rate is 12.8 % from the total gross income. The insurance is divided between the employee at 5.7 % and by the employer at 7.1%. If the employees are doing special types of labor according to the Bulgaria Labor Code the percentage may be higher.
– Common Disease and Maternity Insurance: The insurance is obligatory for all employees no Mather the gender. The rate is 3.5 % for the total gross income and it is paid 40% by the employee and 60 % by the employer
– Unemployment Insurance: The rate is 1 % from the total gross income and it is paid 40% by the employee and 60 % by the employer

Additional Obligatory Pension insurance: This insurance is paid only by employees born after 31.12.1959. The rate is set to 5 % of the total gross income and it is paid 2.2% by the employee and 2.8 % by the employer

State social accidental and professional decease insurance – is varying between 0.4 and 1.1 for the total gross income of the employee and it is paid only by the employer. The rate is depending of the type of activity of the employer.

Health Insurance – The insurance is due according to the Health Insurance Act and the rate is set to 8 % of the total gross income of the employee