Всеки работещ или собственик на бизнес се сблъсква с въпроса как се формират месечните плащания към държавата. Законът официално борави с понятието задължителни осигурителни вноски. Те имат личен характер и се определят като процент от дохода ни. Актуалните размери за годината можете да проверите в официалния портал на Националната агенция за приходите. В тази статия ще разгледаме защо, кога и колко точно трябва да отделяме за тях.

What is insurance?

The law deals with the concept "insurance contributions". These are monthly cash payments that are personal in nature and are determined as a percentage of the insurance income. Insurances are monthly because they are due every month. They are personal, because they must be entered under the personal account of the insured person. The insurance is distributed between the insurer/employer/ and the insured person in a certain percentage ratio. This is not about who will go somewhere to deposit some money, but who owes what part and where the rules for the following are standardized. Insurance contributions are not taxes and are not taxable. Because they have a social nature and their purpose is to help an insured person in difficulty. However, insurance is not a special savings deposit or another form of "accumulating white money for rainy days". The main reason is that the insurance contributions are collected by some persons, and are spent on the occurrence of an insurance event for others as well. The principle of solidarity applies to the insurance system in the Republic of Bulgaria.

There are many similarities between insurance and taxes, but no equal sign can be placed. Insurance contributions aim at raising funds from which insurance benefits (payments) will subsequently be made. I.e. there is a "reimbursement" - I pay insurance today so that I can get an insurance benefit tomorrow. Taxes, in turn, are a constitutional obligation for all citizens and aim to raise funds for the maintenance of the state, state bodies and the implementation of some particularly significant public activities.

What is insurance income?

Insurance income for employees includes all remuneration, including accrued and unpaid, and unaccrued remuneration and other income from employment. Workers' and employees' insurance is based on the specified gross monthly remuneration, but on no less than the minimum insurance income, determined by the Law on the Budget of the Private Limited Liability Company for the relevant year, and for persons to whom the minimum insurance income does not apply - no more less than the minimum wage for the country and no more than the maximum monthly amount of the insurance income.

Минималният осигурителен income for workers and employees, it depends on the economic activity of the insurer and the qualification group in which the position of the insured person falls (or, to put it more simply, what activity the employer develops and what profession the employee practices). The minimum insurance income when calculating the total working time for more than one month is equal to the sum of the minimum insurance income for the main economic activities and qualification groups of professions, and for persons for whom no minimum insurance income has been determined - the minimum wage for the country, for the months of the period for which the cumulative reporting of working hours is established.

For persons working with cumulative calculation of working time for more than one month, the maximum insurance income is equal to the sum of the maximum insurance income for the months of the period for which the cumulative calculation of working time is established.

When the hours worked and other hours with insurance contributions according to the person's schedule established for the month by the employer are more than the agreed working hours, the monthly amount of the insurance income may be greater than the maximum monthly amount established by the Law on the State Public Insurance Budget for the relevant year the amount of the insurance income, such as the total insurance income for the period for which the summary calculation of working hours is established, is limited to the sum of the maximum monthly amount of the insurance income for the period for which the summary calculation of the working hours is established. The limitation is carried out by summing up the insurance income for the first and every subsequent month until reaching the sum of the maximum monthly amounts of the insurance income for the period of cumulative calculation of working hours. The maximum monthly amount of insurance income for 2023 is BGN 3,400, and the minimum - BGN 780 from January 1, 2023.

Which amounts paid are NOT subject to insurance tax?

• per diem on a business trip up to twice their amount, the amount specified in a regulatory act, travel and accommodation allowances during a business trip or their replacement remuneration, including those under § 3 of the additional provisions of Decree No. 133 of the Council of Ministers from 1993 on the adoption of the Ordinance on additional and other labor remunerations;
• the value of free food and/or food supplements, provided in kind in accordance with art. 285 of the Labor Code of employees who work in enterprises with a specific nature and organization of work;
• the value of free food provided in kind to members to the ship's crews for the days in operation, to the fishermen for the days of catch, and to the divers - for the days when going under water, to the staff on duty performing 12-hour shifts in the medical and health facilities, to the operating teams, the emergency medical teams assistance and blood collection teams;
• the value of work, uniform, official and representative clothing, provided under the conditions and according to the procedure provided for in a regulatory act. This provision requires that the receipt of such clothing is expressly provided for in a normative act /laws and normative acts on their implementation - rules, regulations, PMS and instructions/ so that contributions to the DOO are not due.
• the cost of special work clothing and personal protective equipment, which are provided in kind under the conditions and according to the order stipulated in a legal act or a collective labor agreement. When the same are provided by virtue of internal regulations of the enterprises, the insurance contributions are due. When money is paid for special work clothing and personal protective equipment, insurance is mandatory.
• the interest amounts, which are paid in accordance with Art. 245, para. 2 of the Labor Code;
• benefits according to Art. 200, 213, 214, Art. 216, para. 1, items 1 and 2, para. 2 and 3, Art. 220, 221, Art. 222, para. 2, 3 and 4, Art. 224, 225, 226, Art. 232, para. 2 and Art. 331 of the Labor Code, § 118 of the transitional and final provisions of the Law amending and supplementing the Labor Code;
• the value of the reimbursed expenses for the transport of the pedagogical specialists from their place of residence to the place of work and back or for rent by place of work under Art. 219, para. 5 of the Preschool and School Education Act.
• Not subject to insurance cash benefits for temporary incapacity for work or pregnancy and childbirth and raising a child up to 2 years of age or adopting a child up to 5 years of age.

What are the main legal acts that govern insurance issues?

1) The Social Security Code. This Code governs public relations related to:

• state social insurance in case of general illness, occupational accident, occupational disease, maternity, unemployment, old age and death;
• the additional social security, which includes:
• the additional mandatory pension insurance in case of old age and death;
• the additional voluntary pension insurance in funds for additional voluntary pension insurance in case of old age, disability and death or in funds for additional voluntary pension insurance under occupational schemes in old age;
• the additional voluntary insurance for unemployment and/or professional qualification.

State social insurance provides benefits, allowances and pensions in case of temporary incapacity for work due to occupational accident or general illness, invalidity, maternity, old age and death. State social security is compulsory and universal; follows the principle of solidarity and equality of insured persons; strives for social dialogue in the management of the insurance system through fund organization of insurance funds.

2) Health Insurance Law. This law regulates public relations related to health insurance in the Republic of Bulgaria. Health insurance is the activity of collecting health insurance contributions and premiums, managing the collected funds and spending them for the purchase of health activities, services and payment of goods provided for in this law, in the national framework contracts (NRD) and in the insurance contract. It is mandatory and voluntary. The management and spending of the funds is carried out by the National Health Insurance Fund (NHIF) and its territorial divisions - regional health insurance funds (HRIF). Compulsory health insurance provides a package of health activities guaranteed by the NHIF budget. Mandatory health insurance guarantees free access of insured persons to medical assistance through a package of health activities determined by type, scope and volume, as well as free choice of a contractor who has entered into a contract with a regional health insurance fund. Health insurance follows principles similar to social. It is mandatory, as we have the participation of the state, the insured and the employers in the management of the NHIF. There is solidarity with regard to the collected funds and equal treatment of the medical aid contractors when concluding contracts with the RZOK. Insured persons are responsible for their own health.

Who pays the insurance contributions?

Insurance contributions are paid by the insurer and the insured person on the 60:40 basis (60% contribution from the employer/insurer and 40% contribution from the insured person). Persons who carry out a specific activity, in their own name and at their own expense, are called self-insured persons. In this case, the insurer and the insured person match and the person owes 100% of the amount.

For the various social risks (maternity; general illness; occupational accident; occupational disease; unemployment; old age; disability; death) and according to the category of work performed, there are additional criteria contained in the law. For this reason, the payments made are proportionally distributed in certain percentage ratios in the social security funds.

How is the money withheld calculated and where does it go?

The contributions that are deducted from our salary every month and the contributions that the employer pays, are distributed on the following feathers:

• "Pensions";
• "Pensions not related to work";
• "Work accident and occupational disease";
• "General illness and maternity";
• "Unemployment"
• "Health insurance"

The amount of insurance is determined based on several criteria. It depends on whether the person subject to insurance was born before 1960 or after 1959, as well as which category of work he performs. For example, for 2020, the following insurances are due, expressed in percentages:

Labor categories

First category of work are miners, mine rescuers, divers, pilots, workers who carry out the collection, processing and disposal of radioactive waste and spent nuclear fuel, metallurgical workers, ship crews and working in the engine room of vessels in the navy.

In the second category of work fall to engineering and technical specialists who work underground; workers in internal factory transport serving workshops, during production during production, casting and plastic processing of metals; drivers and assistant drivers; drivers of trucks over 12 tons and others specified in the Ordinance on categorization of labor upon retirement.

In the third category of work are all other workers and employees who are not specified in the first and second labor categories.

* DZPO in UPF: All persons born after 12/31/1959 must be insured for an additional pension in the Universal Pension Fund.

** DZPO in PPF: Persons working under the conditions of the I and II category of work, in addition to a universal pension fund, must also be insured in an occupational pension fund for an early retirement pension, regardless of age. Contributions are entirely at the expense of the employer. For the first category of work, the contribution is 12%, and for the second category - 7 %.

*** GVRS: The obligation to make contributions to the "Guaranteed Receivables of Workers and Employees" fund is for all natural and legal persons who simultaneously meet the following conditions:

• employ persons under employment law, i.e. have the qualities of an employer;
• against them it is possible to open bankruptcy proceedings under the Commercial Law (TC) or under other special laws.

Note: The percentages of insurance contributions may vary for persons subject to insurance under Art. 4, paragraph 1 item 2,3,4,5,7,8,10 of CSR

Choosing a pension fund

Each person chooses the fund in which to be insured. Although the insurance is partially paid by the employer, he has no right to interfere in the selection of the additional fund. The person subject to insurance must choose a pension fund within three months from the occurrence of his obligation to provide insurance. The person submits an application form to the pension insurance company managing the fund in which he wishes to participate. Selecting the UPF does not automatically lead to the selection of the PPF and vice versa. When the person is subject to insurance in both types of additional mandatory pension insurance funds, a separate application for participation should be submitted for each of them. If within the specified period the person does not make an independent choice of UPF and PPF, it is subject to ex officio distribution in one of the active funds.

The persons insured in a PPE fund have the right to decide whether to continue to be insured in a universal/occupational pension fund, in parallel with their insurance in the DOO (first insurance pillar), according to the pension model established in 2000, or to transfer the accumulated funds in their individual lot from the additional mandatory pension insurance (second insurance pillar) to the state social insurance (DOO), where they will continue to be insured with a contribution increased by the amount of the insurance contribution for UPF/ PPF. Individuals who have chosen to transfer their personal accounts from UPF to DOO can subsequently resume their insurance in UPF. As for the PPF, there the choice is one-time.

Additional voluntary pension insurance - DDPO

DDPO is entirely voluntary and is realized on the basis of an insurance contract concluded by or for the benefit of the insured person. Any natural person over the age of 16 can be insured in a voluntary pension fund or be insured by an employer.

Insurance in a voluntary pension fund entirely depends on the desire and capabilities of individuals or employers. It always arises on the basis of an insurance contract concluded with the pension insurance company. The other party to the insurance contract is the person who makes insurance contributions - the insured person, the employer or another insurer. Voluntary pension insurance can be carried out both at one's own expense and at the expense of an employer. The insurance contributions are transferred to the account of the relevant fund and are received according to the individual account of the insured person.

References:

1. Law on Health Insurance. Pron. DV. No. 70 of June 19, 1998, final change and add. DV. No. 67 of July 28, 2020
2. Social security code. Pron. DV. No. 110 of December 17, 1999, final change DV. No. 69 of 4 August 2020 Social Security Code
3. Salchev P., Georgieva L. Principles and practices in health and pension insurance. Sofia 2008
4. https://noi.bg/benefits/insurance/1914-onnl
5. https://pravatami.bg/17123, Author: Rumyana Yordanova, 28/09/2016, 15/03/2018

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