Salary in Bulgaria in 2026: gross, net and social security contributions

An owner of an EOOD hires their first employee and sees two figures in the contract — gross salary and net salary. The difference between them is social security contributions and income tax, and this is exactly where mistakes in calculating labor costs most often occur.

Gross and net salary — what's the difference

The gross salary is the amount stated in the employment contract. From it, the employer withholds social security contributions due from the employee and personal income tax, before transferring the remainder — the net salary — to the employee's account.

However, a salary costs the employer more than the gross amount, because social security contributions due from the employer are also payable on top of it. That's why, when planning a budget, one should calculate not the gross salary, but the total labor cost.

Social security contributions in 2026

As of January 1, 2026, payments in Bulgaria are now in euro (1 EUR = 1.95583 BGN), but the percentages of social security contributions remain expressed as a share of the insurable income:

• Employee — 13.78% (10.58% for the "Pensions" fund and the Universal Pension Fund, plus 3.2% health insurance).
• Employer — 18.52%, plus a contribution for occupational accidents and diseases (TZPB) between 0.4% and 1.1%, depending on the company's main economic activity.

So the total burden on the gross salary is around 32–33%, split between employee and employer, with the TZPB percentage determined by the economic activity code listed in the National Classifier.

Maximum insurable income

Social security contributions are due on the actual gross income, but only up to a certain cap — the maximum insurable income for the relevant period:

• EUR 2,111.64 per month — until July 31, 2026.
• EUR 2,300 per month — from August 1, 2026.

For income above these amounts, no social security contributions are due on the excess, but income tax is charged on the entire gross salary.

Self-insured individuals

If the owner of an EOOD or OOD insures themselves as a self-insured person (without an employment contract with themselves), the minimum monthly insurable income is:

• EUR 550.66 — until July 31, 2026.
• EUR 620.20 — from August 1, 2026.

Self-insured persons determine themselves at what level to be insured, within the range between the minimum and the maximum insurable income, and the final amount of contributions is settled upon filing the annual tax return.

Payment deadlines

Social security contributions for persons hired under an employment contract are paid by the employer by the 25th day of the month following the month for which they are due. The same deadline applies to filing declaration form 1 and form 6 with NAP. Late payment incurs interest, and repeated delays may lead to an inspection by the National Revenue Agency.

Tax on salary income

On the gross salary, reduced by the employee's social security contributions, personal income tax is charged under the Personal Income Tax Act (ZDDFL). The withheld tax is paid by the employer within the same deadline as the social security contributions — by the 25th day of the following month.

What the employer needs to prepare

Before paying the first salary, the employer must:

1. Sign a written employment contract and register it with NAP via a notification under Art. 62 of the Labor Code — before work begins.
2. Determine the economic activity code for the purposes of the TZPB contribution.
3. Calculate the gross salary, employee and employer contributions, tax, and the net amount to be paid.
4. File declaration form 1 (data on the insured person) and form 6 (obligations of the insurer) by the 25th day of the following month.
5. Transfer the contributions and tax within the deadlines above.

When an accountant is needed

Calculating a salary seems simple at first glance, but it involves several parallel deadlines — for NAP, for social security contributions, for tax — and different percentages depending on the type of contract, hours worked, and the economic activity code. If a company is hiring its first employee, changing its activity code, paying bonuses or compensations, or has an employee with income above the maximum insurable income, it's advisable to have the calculations checked by an accountant, so as not to make a mistake in the declarations filed with NAP.

If you have a question about a specific salary, bonus, or insurable income threshold in your company, you can call Fiscala or leave an inquiry through the website.