Bulgaria's Minimum Wage, Self-Insurance Contributions Go Up

Domestic | January 1, 2017, Sunday // 11:40|  views

File photo, BGNES

Several changes to wages, fees and costs enter into force as of Sunday, January 01, 2017.

The minimum wage goes up by BGN 40, from BGN 420 to BGN 460, directly affecting tens of thousands of employed people.

Respectively, social contributions paid under labor contracts grow by one percetage point, with 0.56% of this paid by the employer and 0.44% by the employee. One more percentage point will be added in 2018.

The poverty line rises by BGN 14, to BGN 314.

In taxation, a new, 1% discount is in force for those receiving all their labor income into their bank account and spending at least 80% of it by the same means. No documents for the cashless payment will have to be provided.

Excise duties levied on cigarettes are set to increase, which will raise prices for the cheapest brands by at least BGN 0.15-0.20 per pack. Parliament passed the new duries in November.

From now on, the minimum retirement age raises to 64 years and a national insurance record of 38 years and 4 months for men.

For women, the figures are 61 years and 35 years 2 months, respectively. The rise in all figures amounts to 2 months.

The minimum insurance income for self-insuring workers also rises and is now BGN 460 per a yearly income of up to 5400; BGN 500 per a yearly income of BGN 5400.01-6500; BGN 550 per BGN 6500.01-BGN 7500; BGN 600 per an annual income of over BGN 7500.  

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Tags: minimum wage, insurance contribution, excise duties, cigarettes


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