Minimum Social Security Income to Increase from April 1

As of April 1, 2025, Bulgaria will implement new social security income thresholds, directly affecting both employers and self-employed individuals. These changes include updates to the minimum and maximum insurable income, which serve as the base for calculating social insurance contributions.

According to an official announcement, the minimum insurance income will increase to BGN 1,077, while the maximum insurance income cap will rise to BGN 4,130—an increase of BGN 350, compared to the current threshold of BGN 3,780.

What Do the New Social Security Thresholds Mean in Practice?

These changes to the minimum social security income in Bulgaria 2025 will impact both employees and self-employed individuals:

• Employees earning BGN 1,077 or less will now be insured on this new minimum base, even if their actual salary is lower.
• The maximum insurable income of BGN 4,130 means that no social security contributions will be calculated on income above this amount.
• Self-employed persons must also adjust their monthly contributions according to the new minimum or maximum base, depending on what they declare.

Impact on Employers and Employees

The new social security thresholds in Bulgaria will directly influence several aspects of business operations and employee compensation:

• Higher social security contributions for both employees and employers.
• Increased employer costs due to higher base calculations.
• Changes in net salaries, especially for employees in the lower and upper income brackets.
• Adjustment of payroll systems is necessary to remain compliant with the new rules.

Recommended Actions for Employers

Employers are advised to:

• Inform their accounting and HR teams about the new thresholds.
• Update payroll software and systems to reflect the new minimum and maximum contributory bases.
• Review budgets and salary structures in anticipation of the increased social insurance costs.
• Communicate with employees who may be affected by the changes in net income.

Conclusion: Prepare in Advance for a Smooth Transition

The minimum social security income increase in Bulgaria 2025 is part of the government’s broader plan to align social security contributions with economic realities. While the changes aim to strengthen the social insurance system, they also come with increased financial responsibilities for businesses.

Preparing ahead of time and ensuring compliance will help employers avoid administrative delays and financial discrepancies after April 1, 2025.