Changes to the Social Security Code were published in the State Gazette issue No 94 of 30 November 2013 and most of them will come into force as of 1 January 2013.

The key changes are set out below.

Payment

Social security and health insurance contributions should be paid by the 25th day of the month after:

  • the month in which work was performed, regardless of whether the salary/remuneration was paid and/or accrued (relevant for civil servants and those working under employment contracts);
  • the month for which the contributions are due (relevant for the self-insured and those not working under an employment relationship).

Social security contributions will no longer be paid to different accounts but to one account by a single payment order. The rules for repaying social security contributions for compulsory additional pension contributions will be preserved; they will be collected in a separate account in view of their capital nature and the need to preserve the rights of the insured.

Interest

Interest for late payment of social security contributions drops by 10 points (to 10 points above the Bulgarian National Bank base rate for the period), making it the same as the interest for late payment of tax liabilities.

Documents

There are new rules for providing documents to the National Social Security Institute, which apply to employers and other insurers as well as to the self-insured persons:

  • documents relating to temporary disability, labour readjustment, maternity leave and child care must be provided by the 15th day of the month after the month in which the insured person has provided the insurer with the document;
  • documents relating to temporary disability and labour readjustment must be provided by self-insured persons by the 15th day of the month after the month in which the document was issued;
  • documents relating to maternity leave and child care must be provided by the 15th day of the month after the month for which the benefit has been requested.

Penalties

There will no longer be penalties for banks and for company officers who charge/fail to charge and/or authorize remuneration payments without paying social security contributions that are due.