Social security contributions and pensions during 2021

20 January 2021

1. The amount of the minimum insurance income as well as the amount of the contributions to some of the social security funds have been changed

  • The amount of the minimum monthly salary has changed to 650 BGN;
  • There is no change in the amount of social security contributions to the funds “Pensions”, “Overall illness and motherhood” and “Unemployment”;
  • During 2021 are no contributions are envisaged to be paid in to fund “Guaranteed receivables of employees”;
  • The amount of the contributions to fund “Accidents at work and occupational diseases” has been changed depending on the economic activities (Appendix No 2 to State Social Security Budget Act 2021);
  • The maximum amount of the guaranteed receivables under the Guaranteed Claims of Employees in Insolvency of the Employer Act has been changed from BGN 1 525 to BGN 1 625;
  • The minimum monthly amount of the social security income in the different economic activity and qualification groups has been changed (Appendix No 1 to State Social Security Budget Act), for the self-insured persons the said income amounts BGN 650, for farmers and tobacco producers – BGN 420;
  • There is no change in the maximum social security income – it remains at BGN 3 000.

2. Change in the amount of some compensations:

  • The daily minimum amount of the compensation for unemployment has been changed – BGN 12,00 (since September last year), whereas in the same time the daily maximum amount remained unaffected – BGN 74,29.

3. Pensions:

  • The minimum amount of the contributory-service and retirement-age pension during 2021 will be 300 BGN;
  • The order and method of calculation of the pensions for working retirees has been changed (article 102 from the Social Security Code) – ex officio or upon application submitted by the retirees;
  • Changes have been adopted with regard to the deadline up to which the persons may choose the type of methodology for calculation of the individual coefficient (the one, being in force until 31.12.2018 or the new one – being in force since 01.01.2019) when being granted with pension (§ 22ц, para 1 of the Transitional and Final Provisions in the Social Security Code) has been changed) – the said deadline has been prolonged up to 01.01.2022;
  • Change in the regime for change of social security from the universal pensions fund to fund “Pensions” and “Pensions for individuals under art. 69” of the state social security insurance (§9 of the Transitional and Final Provisions of State Social Security Budget Act for 2021) – this change affects directly the persons, who were born after 31.12.1959 and are obliged to make social security contributions to universal pensions fund; It has been implemented  a possibility for the said persons to exercise their right to choose whether to transfer the funds from their individual lots to the universal pensions fund or not;
  1. The possibility is addressed to those individuals to whom a contributory-service and retirement-age pension has not been granted and who dispose of less than 5 years until reaching the overall retirement age by article 68, para 1 from the Social Security Code up to 30 June 2021. This change has impact on the women, born between 01.01.1960 and 31.08.1963, and the men, born between 01.01.1960 and 30.04.1961; The applications for changing the type of social security insuring from the supplementary mandatory pension insurance to universal pensions fund in fund “Pensions”, respectively “Pensions for individuals under art. 69” of State Social Security Act may be submitted in the territorial directorates of the National Revenue Agency.
  2. All persons, who have already been granted with contributory-service and retirement-age pension, starting from 31.12.2020, will have the opportunity as of 01.01.2021 up to 30.06.2021 to request recalculation of theirs pension without the individual coefficient to be reduced, if they transfer their financial means from their individual dossier to universal pension fund in fund “Pensions”, respectively “Pensions for individuals under art. 69” of State Social Security Act.