Employer social security costs in Bulgaria

Companies and taxes · Last reviewed: 2026-08-23

The total burden and who pays what

According to the breakdown published by the Ministry of Economy, total contributions on gross pay run to about 32.70–33.40 per cent. Within that, the Pension Fund contribution is between 14.8 and 19.8 per cent depending on year of birth, and employees born after 1959 additionally pay 5 per cent into supplementary mandatory pension insurance. The General Sickness and Maternity Fund takes 3.5 per cent, the Unemployment Fund 1 per cent, and the Occupational Accident and Disease Fund between 0.4 and 1.1 per cent depending on the economic activity. The mandatory health insurance contribution of 8 per cent is INSIDE this total, not on top of it.

The split is fixed: 18.92–19.62 per cent employer, 13.78 per cent employee. The employee's share is withheld from gross pay; the employer's share is added ON TOP of it. So the true cost of an employee is not the gross salary but the gross salary plus employer contributions. A flat 10 per cent income tax then applies to the employee's income; it lowers net pay but does not raise the employer's cost.

Why we cannot give a single cost figure

Contributions are not calculated on the whole of gross pay but on an insurable income between a statutory minimum and maximum, both set each year by the State Social Security Budget Act. The minimum differs by occupational group, so even a low-paid contract cannot be insured below the minimum set for that occupation. We do not print the 2026 minimum and maximum here because they could not be verified from an official source; read them in the current publication of the National Social Security Institute or the National Revenue Agency. This is the line that most often surprises a hiring budget.

Two verified pay figures give a sense of scale. From 1 January 2026 the minimum wage is 620.20 euro gross per month and 3.74 euro per hour, set by Council of Ministers Decree No 243 of 13 November 2025. The national average gross wage, per the National Statistical Institute release for the first quarter of 2026, was 1,381 euro in January, 1,365 euro in February and 1,475 euro in March. That is a country average; the gap between Sofia and smaller regions is large, and the series is republished every quarter.

Administrative duties triggered by hiring

1. 1

   A written employment contract

   The contract must be in writing; the parties, place of work, position, term, remuneration and working time are mandatory elements.
2. 2

   Notify the revenue agency — 3 days

   Under Article 62(5) of the Labour Code, the conclusion of a contract, an amendment changing the position or term, and its termination must be notified to the competent territorial directorate within three days.
3. 3

   Correct rejected notifications — 3 days

   The system issues a protocol listing accepted and rejected notifications; rejected ones must be corrected and resubmitted within three days of receiving it.
4. 4

   Monthly social security and tax returns

   Contribution and withholding declarations are filed monthly — the rhythm that adds the most to the accounting workload.
5. 5

   Health and safety arrangements

   This is precisely why the accident contribution varies by sector; higher-risk activities carry additional duties.

Managers and partners are a separate case

A company manager is not necessarily insured as an employee. A partner who actually works in the company is, as a rule, a self-insured person and pays contributions personally on an insurable income chosen between the statutory minimum and maximum. A manager engaged under a management contract falls under a different regime. This distinction changes the company's total contribution cost and is one of the first questions to settle with an accountant at formation.

Frequently asked questions

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