Insurance income, the basis for calculating state contributions,
is undergoing a shift in 2024. The maximum insurance income, beyond
which money is subjected to income tax rather than insurance, is
set to rise to BGN 3,750 from January 1, 2024. This marks a
noteworthy increase of BGN 350 compared to the previous threshold
of BGN 3,400, as announced in SG No. 106 on 22.12.2023
Impact on Individuals:
Approximately 163 thousand individuals, identified by the
National Social Insurance Institution with a taxable monthly income
surpassing BGN 3,400 at the beginning of 2022, will feel the
effects of this change.
Financial Implications
With the new cap set at BGN 3,750 from 01.01.2024, insurance
costs per employee will surge reflecting a 10.29% increase..
