Labour & Social Security Legislation of Bulgaria
General
Review
Social security
relations in the Republic of Bulgaria may be divided in two general
groups: relations regarding the state social security and relations
regarding the additional social security.
The state
social security covers risks of general disease, labor accident,
professional illness, maternity, unemployment, old age and death.
The additional
social security consists of: additional obligatory pension security in
case of old age and death; additional voluntary pension security in case
of old age, disability and death; additional voluntary
security for unemployment and/or professional qualification.
The basic
characteristics of the state social security are: equality of socially
secured persons, obligation, comprehensiveness, solidarity of socially
secured persons, and fund organization of securing funds.
The income over
which security installments are assessed includes all remunerations and
other income received from labor activity. The Budget of the State
Social Security Act for the respective year determines the amount of
social security installments depending on the encompassed social risks
as well as the minimum and maximum security income for the year. For
the year 2006 the amount of security installments for all risks
regarding employees working at the third (basic) category of labor is
29,5 % + from 0,4% up to 1,1% for labor accident and illness.
The
distribution of security installments between social insurers and
employees, members of cooperatives, contractors under agreements for
management and control, persons employed at selectable positions and
persons employed under no labor relations is changing throughout the
time and is as follows:
|
For year |
Allocation of social security installment liability | |
|
For the
insurer |
For the
insured | |
|
2006 |
65% |
35 % |
|
2007 |
60% |
40% |
|
2008 |
55% |
45% |
|
2009 and
on |
50% |
50% |
Security
installments for state social security which are to the account of
social insurers are deposited simultaneously with the payment of
remunerations. Social security installments to the account of socially
secured persons are to be deducted and deposited upon payment of the
remunaration. Security installments for self-secured persons and persons
employed under no labor relations are deposited by the tenth day of the
month following the month they refer to.
Incentives
Incentives in
the sphere of social security are directed mainly at tax reliefs:
-
Income of universal and professional pension funds are not subject to taxation pursuant to the Corporate Income Tax Act;
-
Income from investments of pension funds distributed to the individual lots of secured persons are not subject to taxation pursuant to the Taxation of Income of Natural Persons Act;
-
Individual security installments for additional obligatory pension security are deducted from the income prior to taxation;
-
Installments made by employers for additional obligatory pension security are acknowledged as costs related to their business activity.