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