In short
- Social security is 32.7% of insurable income under an employment contract — 13.78% withheld from the employee, 18.92% added by the employer.
- The 8% health contribution is included in these percentages: 4.8% from the employer and 3.2% from the employee.
- Insurable income under an employment contract is the gross salary, but not less than the minimum insurable income for the activity and job and not more than €2,111.64 until 31 July and €2,300 from 1 August 2026.
- Self-employed persons choose their own income within €550.66–€2,111.64 (until 31 July) and €620.20–€2,300 (from 1 August 2026).
What social security is
Social security is a mandatory contribution that funds specific future payments to the insured person themselves — a pension on reaching retirement age, sick pay during temporary incapacity, unemployment benefit, maternity pay. It is paid into the State Social Insurance fund (SSI), administered by the National Social Security Institute (NSSI), and into the National Health Insurance Fund (NHIF) — the health contribution. The two systems are separate, even though both are collected through the National Revenue Agency (NRA).
The base on which social security is calculated is called insurable income. Under an employment contract this is the gross salary within statutory limits. The minimum is the minimum insurable income for the economic activity and qualification group of the job, set by the State Social Insurance Budget Act 2026 (the new amounts apply from 1 August 2026). The maximum is €2,111.64 a month until 31 July and €2,300 from 1 August 2026. Income above the ceiling is not additionally insured.
Who pays, and how much
| Status | Insurable income | Contribution rate | Who pays |
|---|---|---|---|
| Employee under an employment contract | from the minimum for the activity and job up to €2,111.64 (until 31 July) / €2,300 (from 1 Aug 2026) | 32.7% total | 13.78% employee, 18.92% employer |
| Self-insured person (SOL) | €550.66–€2,111.64 until 31 July; €620.20–€2,300 from 1 Aug 2026 | 27.8–31.3% (depending on the risks insured) | self, by the 25th |
| Individual under a civil contract | fee minus the statutory recognised expense | if already insured on another basis that month: pension contributions regardless of the amount; if not: only when the fee after the expense allowance is at least €620.20 for the month (Social Insurance Code, Art. 4(3)(5)) | the contracting party withholds and pays |
Exact figures for a given gross salary: salary calculator. For self-insured persons: social security calculator.
Social security versus income tax
The two deductions look similar on a payslip but follow different logic. Social security is a contribution to a personal, individualised account — the more and the longer you're insured, the higher your own future pension or benefit. Income tax (a flat 10%) goes to the general state budget and funds public spending with no direct link to what you personally get back.
In practice, an employee's gross salary is reduced by 13.78% social security + 10% tax on the remainder — tax is charged after social security is deducted, not on the full gross amount. Example at €1,000 gross: 13.78% social security = €137.80; tax = 10% of (1,000 − 137.80) = €86.22; net = €775.98.
What social security actually covers
- ✓Pension fund — the largest share of the contribution; determines the size of the future pension.
- ✓General sickness and maternity — entitlement to sick pay and maternity/paternity benefit.
- ✓Unemployment — only for employees under an employment contract; self-insured persons have no entitlement to unemployment benefit.
- ✓Work injury and occupational disease — funded solely by the employer; the lowest rate of 0.4% is included in the 18.92%.
- ✓Health contribution (8%) — access to healthcare under the NHIF; included in the 13.78% and 18.92%, but paid into the NHIF, not the SSI fund.
A dividend is not insurable income — if an EOOD/OOD owner receives only a dividend and performs no personal labour in the company, they owe no social security on it and accrue no social security entitlement from it. If they live in Bulgaria and have no health insurance on any other ground, they pay the health contribution of €24.81 a month themselves (Art. 40(5) of the Health Insurance Act). More: dividend vs. salary.
Frequently asked questions
What is insurable income?
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The base on which social security is calculated. Under an employment contract this is the gross salary, but not less than the minimum insurable income for the activity and qualification group of the job and not more than the maximum (€2,111.64 until 31 July, €2,300 from 1 August 2026). Self-employed persons choose an income between the minimum and maximum set for them.
What is the difference between social security and income tax?
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Social security funds specific future payments to the insured person — pension, sick pay, unemployment benefit. Income tax (a flat 10%) goes to the general budget and is not returned personally.
Do I pay social security if I only receive dividend income?
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No — a dividend is not insurable income. If you perform no personal labour in the company and are not insured on another basis, the dividend carries no social security entitlement.
What does social security cover besides a pension?
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The State Social Insurance fund covers pension, sick pay, maternity and unemployment benefit; the 8% health contribution, paid into the NHIF, covers access to healthcare. The two run in parallel and don't replace each other.
Sources
Social Insurance Code; Health Insurance Act; State Social Insurance Budget Act 2026; nra.bg, nssi.bg. Verified 28 September 2026.
Important
Bulsmetka is a private accounting firm, not a government body. Information is general and does not replace individual advice.