Salary Calculator
Bulgaria

A salary calculator for Bulgaria first takes into account the gross salary, which includes base wages, bonuses, and other compensations. Then, it deducts 10% of the gross salary for tax contributions. Moreover, the calculation involves social security contributions like healthcare and pensions. Once all of these costs are deducted, the calculator will show the net salary, which is the salary that the employee takes home. 

In Bulgaria, employers and employees contribute to the social security system, covering various aspects such as pensions, health insurance, and unemployment benefits. Employers in Bulgaria are required to contribute approximately 18-19% of the employee’s gross salary to social security. This includes the following:

-Pension fund (Retirement and Disability Insurance): 13.72% to 14.12% (depending on the nature of work).

-Health insurance: 4.8%.

-Accident insurance: The rate can vary depending on the industry and risk profile, generally around 0.4% to 1.1%.

-Unemployment insurance: 0.6%.

On the other hand, employees also contribute about 13.78% of their gross salary, covering the pension fund (10.58%) and health insurance (3.2%).

Employees in Bulgaria are subject to a flat income tax rate of 10% on their earnings, one of the lowest in Europe. This tax applies to all types of income, regardless of the amount. In addition, employers are also subject to a corporate income tax rate of 10% on their profits. The low corporate tax rate attracts a lot of entrepreneurs to set their business roots in Bulgaria. 

*Please note that this tax rate can vary based on legislative changes.

Employees are entitled to 20 days of paid annual leave as a minimum, regardless of experience. When it comes to sick leave, the employer covers the first 3 days, and after that, the National Health Insurance Fund covers the remaining days.

Maternity leave is well-protected in Bulgaria, with mothers entitled to 410 days (approximately 58 weeks) of paid maternity leave, with 45 days required before the birth. The father is entitled to 15 days of paternity leave. Bulgaria also offers unpaid parental leave that can be taken until the child reaches two years of age.

What’s more, employees born after 1959 contribute to a supplementary mandatory pension fund, which is part of the total pension contribution. 

One common additional expense is related to training and professional development. Many employers offer opportunities for their staff to attend workshops, seminars, or pursue certifications to improve their skills. Similarly, meal vouchers or food allowances are often provided by employers. These allow employees to purchase meals or groceries and can offer tax advantages for both parties.

In Bulgaria, the difference between gross and net salary refers to the deductions made from an employee’s gross earnings to arrive at their take-home pay or net salary. Gross salary is the total amount an employee earns before any taxes or social security contributions are deducted. This includes not only the base salary but also any bonuses or other compensations that may be part of the employee’s overall earnings package.

Net salary, on the other hand, is the amount the employee actually receives after all mandatory deductions, such as income tax and social security contributions, are subtracted.