How Bulgarian salary is calculated — step by step

Calculating a Bulgarian salary involves three steps: insurable income, social contributions, and finally income tax. Here’s the full walkthrough.

Step 1: Insurable income

Insurable income is usually equal to gross salary, but it’s capped — from August 1, 2026, the cap is €2,300 per month. Amounts above that threshold aren’t insured further (but are still taxed).

Step 2: Employee social contributions (13.78%)

These are deducted from insurable income:

Contribution	Employee rate
Health insurance	3.2%
Pension insurance (DOO)	8.38%
Supplementary pension insurance (DZPO)	2.20%
Total	13.78%

(Figures for labor category III, born after 1959 — the most common case.)

Step 3: Flat income tax (10%)

Gross salary minus the employee’s contributions (the taxable base) is taxed at a flat 10%. There’s no tax-free threshold and no progressive brackets — the rate is the same regardless of income.

Example

Gross salary of €2,000:

1. Contributions: €2,000 × 13.78% = €275.60
2. Taxable income: €2,000 − €275.60 = €1,724.40
3. Tax: €1,724.40 × 10% = €172.44
4. Net salary: €2,000 − €275.60 − €172.44 = €1,551.96

Check your own salary instantly with the salary calculator — it also supports net → gross.

The employer pays more, too

Separately from the employee’s deductions, the employer pays its own 18.92% contributions on the same insurable income — see the employer cost calculator.