In Bulgaria, tips left for waiters, bartenders, drivers, and
other service workers often raise questions regarding their tax and
social security treatment. The National Revenue Agency (NRA) has
clarified that tips are not considered a separate type of income.
Instead, they are treated as part of an employee's wages and
are subject to both taxation and social security contributions.
How Tips Are Classified
For employees working in restaurants, cafes, and similar
establishments, tips are directly connected to the work they
perform. Although customers provide the payment rather than
employers, tips are treated as additional compensation for labor.
The method of payment, whether cash, card, or through a digital
platform, does not change how tips are taxed or treated for social
security purposes.
