Social Security Contributions in Bulgaria

Our clients frequently ask what payroll taxes and social security contributions they are required to pay for their employees—whether employed under an employment contract or appointed as managing directors—in Bulgaria. This article (updated as of August 2026) provides a concise overview of the applicable rules.

For the purposes of Bulgarian social security obligations, the Contract for management and control is treated as an Employment contract. The persons appointed under such contracts in Bulgaria must pay contributions for all social security risks as well as income tax. In addition, social security declarations must be submitted each month together with payment of the due tax and social security obligations by the 25th day of the month following the month to which they relate.

Depending on the company's business activity, different mandatory minimum social security assessment bases apply. In addition to these minimum thresholds, the maximum monthly social security assessment base, which applies to all economic sectors, must also be taken into account. As of 1 August 2026, this maximum assessment base amounts to EUR 2,300.

Mandatory social security contributions are payable only up to this maximum assessment base. Any employment income exceeding EUR 2,300 is subject only to the 10% personal income tax, while no additional social security contributions are due on the excess amount.

The applicable contribution rates are as follows:

1). Social security contributions at the expense of employee:

• State social security – 8,38%
• Supplementary mandatory pension insurance – 2.2%
• Health insurance – 3.2%

The employee's total mandatory social security contribution amounts to 13.78% of the gross salary. These contributions are withheld from the employee's gross remuneration. The remaining taxable income is then subject to 10% personal income tax.

2) Social security contributions at the expense of the employer

• State social security – 10.92%
• Supplementary mandatory pension insurance – 2.8%
• Health insurance – 4.8%.

In addition to these contributions, employers must also contribute to the Occupational Accident and Occupational Disease Fund. The contribution rate varies between 0.4% and 1.1%, depending on the occupational risk category applicable to the employer's business activity. One of the highest contribution rates applies in the construction sector.

Consequently, the employer's total mandatory social security contribution ranges between 18.92% and 19.62%, depending on the company's economic activity.

From 1 August 2026, the minimum social security assessment base for managing directors in the service sector depends on the respective economic activity. For the most common business activities, including administrative services and information technology, the minimum monthly gross remuneration for managerial positions has been increased to EUR 936. This amount therefore represents the minimum social security assessment base for a managing director employed under a management agreement in these sectors.

Let us look at the following example where the gross remuneration is EUR 936 in the services sector:

The employee's mandatory social security contributions amount to 13.78%, which corresponds to EUR 128.98.

These contributions are deducted from the gross salary:

EUR 936.00 − EUR 128.98 = EUR 807.02

The remaining taxable income is subject to 10% personal income tax:

EUR 807.02 × 10% = EUR 80.70

After deducting the employee's social security contributions and personal income tax, the employee receives a net monthly salary of EUR 726.32:

EUR 936.00 − EUR 128.98 − EUR 80.70 = EUR 726.32

For employers operating in the service sector, the employer's mandatory social security contributions amount to 19.02%. In this example, this corresponds to:

EUR 936.00 × 19.02% = EUR 178.02

Accordingly, the employer's total monthly employment costs amount to:

EUR 936.00 + EUR 178.02 = EUR 1,114.02

Let us look at another example where the gross salary is higher than the maximum insurable income – EUR 3.000:

Since the gross salary exceeds the maximum monthly social security assessment base of EUR 2,300, social security contributions are calculated only on this maximum amount.

The employee's mandatory social security contributions therefore amount to:

EUR 2,300.00 × 13.78% = EUR 316.94

The taxable income is calculated as follows:

EUR 3,000.00 − EUR 316.94 = EUR 2,683.06

The personal income tax amounts to 10% of the taxable income:

EUR 2,683.06 × 10% = EUR 268.31

The employee's net monthly salary is therefore:

EUR 3,000.00 − EUR 316.94 − EUR 268.31 = EUR 2,414.75

The employer's social security contributions are likewise calculated only on the maximum assessment base:

EUR 2,300.00 × 19.02% = EUR 437.46

Accordingly, the employer's total monthly employment costs amount to:

EUR 3,000.00 + EUR 437.46 = EUR 3,437.46

Our Gross-to-Net Salary Calculator for Bulgaria enables both employers and employees to calculate their monthly payroll taxes, mandatory social security contributions, net salary and total employment costs quickly and accurately under Bulgarian law.