espite the low taxation rates in Bulgaria, the amount of social and health contributions paid by employers is not at all insignificant but it’s still lower than other EU countries. Below we show examples of social & health contributions (note that the amounts are approximate as they depend on the specific job position of the employee; consider +/- 3% of the below calculations as a variance) as well as income tax and net employee’s income. Should you need to know the exact amount of social security contribution for a specific position please don’t hesitate to contact us.
Labor expenses for employees with labor contracts or Managers, CEO, Board members, etc. with management contracts
|Employee's monthly income||EUR 500||EUR 1,000||EUR 1,500||EUR 2,000||EUR 2,500|
|Social and health contributions||EUR 89||EUR 178||EUR 219||EUR 219||EUR 219|
|Total employer’s (company's) expenses||EUR 589||EUR 1,178||EUR 1,719||EUR 2,219||EUR 2,719|
|Deductions for the employee|
|Social & health contributions||EUR 64.50||EUR 129||EUR 158.77||EUR 158.77||EUR 158.77|
|Income tax||EUR 43.55||EUR 87.10||EUR 134.12||EUR 184.12||EUR 234.12|
|Employee's net income||EUR 391.95||EUR 783.90||EUR 1207.11||EUR 1,657.11||2,107.11|
Please keep in mind that the minimum monthly salary in Bulgaria is determined by law and it is the same for everyone, regardless of their profession. It is the minimum amount of the salary received by a full-time (8 hours daily / 40 hours weekly) employee monthly. MMS currently is 360.00 BGN and from July 1. 2015 will be 380.00 BGN. The minimum amount of insurable earnings varies due to position (job) of the employee and economic activity of the employer. It is the minimum base amount for calculating the social contributions. The maximum amount of insurable earnings (on which social and health contributions are calculated) is currently BGN 2,600 leva (or around EUR 1,330). For all other income levels above the maximum salary base only income tax is deducted.
If you want to know precisely how much would an employee cost you in Bulgaria please don’t hesitate to contact us.