Insurance income 2024

Changes in insurance income 2024

The government adopted an increase in the maximum social security income and the minimum salary as follows:

BGN 3,750 maximum insurance income

BGN 933 minimum work salary

Here we look at a few models that would be helpful in planning your employee salary budget. You will understand how the change will affect the salaries of employees and your business.

Models of the
maximum insurance income (MII)

The following models are discussed in the tables below:

Previous model: With MII 3,400 BGN and a basic salary per employee of BGN 5,000. This table serves as a basis for comparison with Options 1, 2 and 3.

OPTION 1: At MII 3,750 BGN and when the employer keeps the same basic salary per employee of BGN 5,000.

OPTION 2: At MII 3,750 BGN and when the employer increases the employee’s basic salary to compensate the employee and the latter receives the same net salary as before.

OPTION 3: At MII 3,750 BGN and when the employer reduces the basic salary of the employee in order to maintain the current costs of salary, insurance and taxes.

Previous model

MII 3400 BGN
The expenses you have incurred up to this point

Basic salary		5000,00
Personal Income Tax	10%	453,15
Pension Insurance	8,38%	284,92
Additional PI	2,20%	74,80
Health Insurance	3,20%	108,80
Net Earning		4078,33
Total with work accident insurance 0.4%		643,28
Cost to employer		5643,28

The employee receives a net salary in the amount of BGN 4078.33, as it has been until now

The total cost of the employer is BGN 5,643.28

OPTION 1

MII 3750 BGN
NO compensation
from an employer

Basic salary		5000,00
Personal Income Tax	10%	448,33
Pension Insurance	8,38%	314,25
Additional PI	2,20%	82,50
Health Insurance	3,20%	120,00
Net Earning		4034,93
Total with work accident insurance 0.4%		709,50
Cost to employer		5709,50

The employee receives BGN 43.4 lower net salary, amounting to BGN 4034.93

The total cost of the employer increases by BGN 66.22, it becomes BGN 5709.50

OPTION 2

MII 3750 BGN
WITH compensation
from an employer

Basic salary		5048,23
Personal Income Tax	10%	453,15
Pension Insurance	8,38%	314,25
Additional PI	2,20%	82,50
Health Insurance	3,20%	120,00
Net Earning		4078,33
Total with work accident insurance 0.4%		709,50
Cost to employer		5757,73

The employee receives the same net salary in the amount of BGN 4078.33

The total cost of the employer increases by BGN 114.45, it becomes BGN 5757.73

OPTION 3

MII 3750 BGN
The employee bears the full increase in the MII

Basic salary		4933,78
Personal Income Tax	10%	441,70
Pension Insurance	8,38%	314,25
Additional PI	2,20%	82,50
Health Insurance	3,20%	120,00
Net Earning		3975,33
Total with work accident insurance 0.4%		709,50
Cost to employer		5643,28

The employee receives BGN 103.00 lower net salary, amounting to BGN 3975.33

The total cost of the employer does not change and remains at BGN 5,643.28

Model of the
minimum work salary (MWS)

Previous model at MWS
780 BGN

Basic salary		780,00
Personal Income Tax	10%	67,25
Pension Insurance	8,38%	65,36
Additional PI	2,20%	17,16
Health Insurance	3,20%	24,96
Net Earning		605,26
Total with work accident insurance 0.4%		147,58
Cost to employer		927,58

The employee receives a net salary of BGN 605.00

The total cost of the employer is BGN 927.00

Model for MWS
933 BGN

Basic salary		933,00
Personal Income Tax	10%	80,44
Pension Insurance	8,38%	78,19
Additional PI	2,20%	20,53
Health Insurance	3,20%	29,86
Net Earning		723,99
Total with work accident insurance 0.4%		176,52
Cost to employer		1109,52

The employee receives a net salary of BGN 723.99

The total cost of the employer increases by BGN 181.94