How net salary is calculated
From the gross salary, the employee pays 13.78% social security (pension, supplementary pension, health insurance) — but only on insurable income up to €2,300/mo. The remainder is taxed at a flat 10% income tax, with no tax-free minimum. The employer adds a further 18.92% in social security on top — this is not withheld from the salary, it is an additional cost to the company.
2026 rates
| Deduction | Employee | Employer |
|---|---|---|
| Total social security | 13.78% | 18.92% |
| Income tax | 10% on (gross − employee's own social security) | — |
| Insurable income cap | €2,300/mo. — applies to both sides; tax is not capped | |
Rates shown are for third labour category, born after 1959 — the most common case for office and administrative work. The employer's exact percentage varies slightly by economic-activity code (the "occupational accident and disease" component, 0.4–1.1%); a standard low-risk rate is used here.
Why there is no tax-free minimum
Unlike many EU countries, Bulgaria has no tax-free minimum for employment income — the flat 10% rate applies from the first lev. The only built-in relief is for children (a tax credit applied at the annual reconciliation or through the employer by declaration) and for reduced work capacity — this calculator excludes both to keep the result comparable across cases.
Frequently asked questions
How is net salary calculated from gross salary in Bulgaria in 2026?
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13.78% social security is withheld from the employee's gross pay (on insurable income up to €2,300), then 10% income tax applies to the remainder. What is left is the net take-home pay.
What is the maximum insurable income for 2026?
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€2,300 per month. Above that, no further social security is due, but the 10% income tax still applies to the full gross salary.
How much does an employee cost the employer beyond the salary?
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The employer adds 18.92% social security on top of insurable income (capped at €2,300) to the gross salary — that is the full monthly cost of the position, before benefits, bonuses or vouchers.
Is there a tax-free minimum on salaries in Bulgaria?
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No. The flat 10% tax applies from the first lev of employment income — unlike some countries, there is no tax-free allowance for employees. Only child tax relief reduces the base.
Sources
Social Insurance Code Art. 6(3) and 6(11); State Social Insurance Budget Act 2026 (maximum insurable income €2,300); Personal Income Tax Act Art. 42; National Revenue Agency — social security contribution reference. Verified 3 September 2026. Results are indicative and exclude child relief or reduced-work-capacity relief.