How net salary is calculated in Bulgaria in 2026
- Employee social security of 13.78% is deducted from gross pay, calculated on insurable income (up to the maximum).
- What remains is the taxable income.
- Income tax of 10% is deducted from it.
- The rest is the net salary paid to the employee.
Separately, the employer pays its own contributions of 18.52% plus the work-accident rate (0.4–1.1%). Gross salary plus these contributions is the total employer cost.
2026 rates (employee born after 1959)
| Fund | Employer | Employee |
|---|---|---|
| State pension | 8.22% | 6.58% |
| Sickness and maternity | 2.10% | 1.40% |
| Unemployment | 0.60% | 0.40% |
| Work accidents and occupational disease | 0.4–1.1% | — |
| Supplementary pension fund (UPF) | 2.80% | 2.20% |
| Health insurance | 4.80% | 3.20% |
| Total | 18.52% + work-accident rate | 13.78% |
For employees born before 1 January 1960 the pension contribution is higher (11.02% employer, 8.78% employee) but there is no supplementary pension fund contribution, so the total is the same.
Examples
| Gross | Net | Employer cost* |
|---|---|---|
| €620.20 (minimum) | €481.27 | €737.55 |
| €1,000 | €775.98 | €1,189.20 |
| €1,500 | €1,163.97 | €1,783.80 |
| €2,500 | €1,964.75 | €2,935.16 |
* With a 0.4% work-accident rate and the €2,300 maximum insurable income (from 1 August 2026).
Need help with payroll and filings? See our payroll service or read the full guide to payroll in Bulgaria in 2026.