Increase of the minimum wage and social security income for 2020

10 Jan Increase of the minimum wage and social security income for 2020

cover03 Salaries for January 2020 should correspond with the increased amount of the minimum monthly salary, determined by the Decree of the Council of Ministers No350 of 19.12.2019, amounting to 610 BGN for a normal working time of 8 hours per 5-day work week. The minimum monthly salary is the basic salary and its amount is fixed for a full working month. The contributions for January 2020, due by February 25, 2020, should be in compliance with the changes in the social security income introduced by the State Social Insurance Budget Act (SSIBA) for 2020. 

The minimum monthly amounts of the social security income by main economic activities and qualification groups of professions (the minimum insurance thresholds) to be applied in 2020 have been increased, according to Appendix No.1 to Art. 9, Item 1 of the SSIBA for 2020. The minimum monthly insurance income for self-insured persons has also been increased and was determined at the amount of 610 BGN (Article 9, Item 2 of the SSIBA for 2020). The minimum monthly insurance income for registered farmers and tobacco growers has been increased as well and fixed at 420 BGN for 2020 (Art. 9, Item 3 of the SSIBA for 2020). 

The maximum monthly insurance income for 2020 is unchanged and preserved at the amount of 3,000 BGN, which applies to all insured persons (Article 9, Item 4 of the SSIBA for 2020). The size and the distribution between the insurers and the insured persons of the insurance contributions for the state social insurance funds, as well as for the supplementary mandatory pension insurance, are also preserved. The amount of the health insurance contribution, determined by the National Health Insurance Fund Budget Act for 2020 at the amount of 8% of the applicable insurance income, is unchanged. The distribution of health insurance contributions among insurers and insured persons is also preserved. 

With respect to persons whose health insurance income coincides with or is tied to the social security income, the amounts of the social security income determined by the SSIBA for 2020, shall be taken into consideration. Contributions to the Guaranteed Claims of Employees Fund are also not foreseen for 2020 (Art. 15, Para. 1 of the SSIBA for 2020).