We would like to inform you about the key updates stemming from the recently approved state budget in Bulgaria, which will come into effect on 1 April 2025. These changes were published in State Gazette No. 25 on 25 March 2025 and are expected to impact employers and employees across various sectors. Below is a summary of the most notable adjustments.
Key Budget Changes in Bulgaria from 01.04.2025
1. Increase in Minimum Insurance Base
The minimum insurance base will rise from BGN 933.00 to BGN
1,077.00. This change is expected to affect payroll planning for
employers, especially those managing minimum wage earners.
2. Increase in Maximum Insurance Base
The maximum insurance base will increase from BGN 3,750.00 to BGN
4,130.00. This impacts the calculation of social contributions for
higher-income earners.
3. Adjustments to Social Security Contributions
- Employer's Contribution: Will increase from BGN 709.50 (as of 31 March 2025) to BGN 781.40 starting 1 April 2025. Note that contribution percentages can vary depending on the nature of the employer's business.
- Employee's Contribution: Will rise from BGN 516.75 to BGN 569.11 from the same date.
These revisions are part of the government's broader fiscal adjustments aimed at maintaining social security systems and important for the stability of the pension system, health insurance and the Unemployment Fund.
Eurofast's Take
Employers should assess the financial implications of these changes
on their overall payroll budgets. Timely adjustments to payroll
systems and employee communications will be essential to ensure
compliance.
Eurofast's payroll experts in Sofia are available to provide tailored advice and assist with implementation, including updating payroll software and preparing accurate monthly reports under the new thresholds.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
