Share this post

Print

Insurance income, the basis for calculating state contributions, is undergoing a shift in 2024. The maximum insurance income, beyond which money is subjected to income tax rather than insurance, is set to rise to BGN 3,750 from January 1, 2024. This marks a noteworthy increase of BGN 350 compared to the previous threshold of BGN 3,400, as announced in SG No. 106 on 22.12.2023

Impact on Individuals:

Approximately 163 thousand individuals, identified by the National Social Insurance Institution with a taxable monthly income surpassing BGN 3,400 at the beginning of 2022, will feel the effects of this change.

Financial Implications

With the new cap set at BGN 3,750 from 01.01.2024, insurance costs per employee will surge reflecting a 10.29% increase..

Impact on the Employees

For employees with a gross salary equal to or higher than BGN 3,750, they will receive BGN 43.40 less net salary.

If this article caught your attention and you would like to receive detailed calculations – please send us your inquiry.


Eurofast is a regional business advisory organization employing local advisors in over 21 cities in South East Europe & the Middle East (SEEME). The Organization is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in  Tax & Transfer Pricing – Payroll & Employment – Accounting & Compliance –Advisory & Corporate. 
Hristiana Hristova Eurofast

Hristiana Hristova
HR&Payroll Specialist
Eurofast Sofia
sofia@eurofast.eu

Tags: