Summary
The Bulgarian social security system is comprehensive in nature, providing old age, disability, sickness and maternity benefits, as well as industrial injury and unemployment coverage.
Details
Contributions
The employer contribution rate is between 14.12% and 14.82%, depending on the employer’s industry sector. Employee contributions are paid at a rate of 10.58%. Both employer and employee contributions are payable on monthly income up to approximately $2,500. In addition, Health insurance contributions of 4.8% (employer) and 3.2% (employee) are payable.
Treaties
Bulgaria has social security agreements with all European Economic Area countries and 12 non-EEA countries, including Canada, Israel, Korea, Ukraine and Russia. These agreements generally determine which country has the right the levy social security contributions, has the obligation to provide benefits, and prevent social security being levied twice on the same income. Most inbounds expatriates to Bulgaria therefore continue to pay home country social security contributions.
There is no UK agreement but moves between the two countries are in general covered by the UK/EU Trade and Cooperation agreement, although this limits home country coverage to two years, without the possibility of extension Special rules apply to individuals working in Bulgaria and other EEA countries (plus the UK) on a regular basis.
There is no US/Bulgarian agreement so US outbound expatriates to Bulgaria will be subject to a double charge to social security.
Exemptions
Mandatory social security contributions paid by individuals in Bulgaria or any other EU/EEA member state are tax deductible.
Administration
Employers are responsible for social security withholding and other declarations to the authorities. These are submitted electronically to the National Revenue Agency (NRA) every month. Employers must retain payroll records for 50 (fifty) years.
Benefits
The state pension age in Bulgaria is in the process of being equalised for men and women, and being raised to 65. Ultimately, entitlement to a full pension will require 40 years of insurance for men and 37 for women. Non cash benefits are generous (for example, 410 days of paid maternity leave is available) although cash benefits are comparatively low.
Social security insights are intended to provide quick and straightforward insights into social security regimes. Always seek professional advice based on actual circumstances before acting.
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