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Social security insurance law is one of the key areas in the legal and social sphere that affects almost every part of our lives. Whether you need assistance in matters related to pension calculations, health social security insurance or legal protection in relation to social security, expert advice in this area is essential. Often clients ask us questions such as: “How do I check my social security insurance status and calculate my future pension?” or “What are my rights in the event of temporary incapacity for work?” It is these topics that are vital to individual and family financial stability.
Accounting and consulting firm “Elan Consulting” offers a wide range of services that cover all issues related to social security insurance law. Our specialists in the field have the necessary expertise and know in detail the regulatory framework, including the Social Security Code and related bylaws. With the help of our professionals, you can get comprehensive answers and guidance on your rights, as well as take advantage of services for precise calculation of social security insurance and benefits.
Whether you are in Sofia, Burgas, Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol, Primorsko or any other part of Bulgaria, our consultations can be provided remotely or on-site. In this article, we will look at the main aspects of social security insurance law and clarify key issues that excite our clients.
Consulting firm Elan Consultingoffers a wide range of professional services and advice in the field of social security insurance law, aimed at providing quality solutions for individuals, companies and organizations. With a highly qualified team of experts, the company provides personalized support that meets the specific needs of each client.
Among the main services that Elan Consulting offers is legal advice on social security obligations and rights. This includes assistance in determining the scope of compulsory social security insurance, correct calculation of social security insurance contributions and assistance in verifying individual social security insurance status. Customers often ask questions such as: “How do I check the correctness of my social security insurance data?” or “What are the requirements for retirement?” The Elan Consulting team provides comprehensive information and guidance based on current legislation.
The company also offers assistance in labor and social security insurance disputesin cases where it is necessary to challenge administrative acts relating to social security insurance obligations and protection in the event of checks and audits by the institutions. Our experts work side by side with good social security insurance lawyers with whom we partner, who can represent clients before competent authorities, such as the National social security insurance Institute (NII) or the Financial Supervision Commission (CFN), in order to protect their rights and interests.
Another key service is the calculation of social security insurance and pension payments. The Elan Consulting team can prepare precise calculations for future pensions, benefits in case of temporary incapacity or maternity, as well as other risks covered by the public social security insurance system. These calculations are especially useful for clients who are planning their financial future or preparing for retirement.
The company provides and advice on voluntary pension provision and investment opportunities in supplementary funds. This service includes analysis of various funds, assessment of profitability and assistance in choosing the most suitable social security insurance products for the client. The Elan Consulting team offers guidance to maximize the benefits of supplementary social security insurance while ensuring compliance with legal requirements.
For companies and employers Elan Consulting provides legal advice and administration of social security obligations. This includes optimization of social security insurance costs, management of employment contracts and social security insurance risks, as well as support for checks by social security insurance authorities. The company also provides training for HR professionals and managers to help them manage social security insurance processes effectively.
The Bulgarian social security insurance system is a structure created to ensure financial stability and social protection of citizens in the event of certain risks that lead to loss of income or the need to cover additional costs. This system is mainly regulated by Social Security Code (CSR)and is based on principles such as obligation, solidarity, equality and fund organisation of funds.
The types of insured social risks in Bulgaria are clearly defined in the Social security insurance Code (CSR) and are the basis for the functioning of the social security insurance system. These risks include situations in which insured persons lose income or are placed in a condition requiring financial support. The regulation of these risks is spelled out in Article 2 and the related provisions of the CSR, which determine the scope and conditions of social security insurance.
The common diseaseis a social risk provided for in Art. 39 of the CSR, which is covered by the provision of cash benefits for temporary incapacity for work. This applies to cases in which the insured person is unable to carry out labor activity due to illness. These benefits are provided for the period of incapacity for work, the amount and conditions for receiving them are regulated by law.
Accident at work and occupational diseaseare specific insured risks regulated in Art. 55 of the CSR. They cover situations related to disability or illness that have occurred as a result of working conditions. Insured persons are entitled to cash benefits or pensions, depending on the severity and duration of the incapacity for work.
Motherhoodis an important social risk covered by Art. 49 and Art. 50 of the CSR. It includes the provision of benefits for pregnancy, childbirth and raising a child. The system provides financial assistance to pregnant women for a period of 410 days, which covers 45 days before and after childbirth. This ensures stability for families during motherhood.
Unemploymentis another significant insured risk regulated in Art. 54a of the CSR. It covers situations where the insured person remains out of work and is registered with a labor office. For the period of unemployment, a person is entitled to compensation, the amount and duration of which are determined depending on the length of service and the amount of social security insurance contributions made.
The risk of old ageis an essential element of the social security insurance system, regulated in Art. 68 of the Civil Code. Insured persons who reach retirement age and have fulfilled the requirements for social service are entitled to a pension for seniority and old age. It is a guarantee of income after the end of a working career and ensures stability in retirement age.
Disabilitythe risk associated with the permanent incapacity of the insured persons is insured. According to Art. 71 of the CSO, persons who lose their ability to work due to general illness, occupational accident or occupational disease are entitled to a disability pension. This risk provides protection for persons who are unable to continue working due to permanent disability.
Death of an insured personi s a social risk covered by Art. 81 of the CSR. In the event of the occurrence of this risk, the family members of the deceased person are entitled to a pension for heirs. This provides financial support for the family in the event of the loss of an income earner.
The public social security insurance system also covers health risks associated with the need for treatment and medical care. Although these risks are subject to the Health social security insurance Act, they complement the scope of social protection by providing access to health services and coverage of treatment costs.
These insured social risks form the basis of social security in Bulgaria. They shall ensure that insured persons receive the necessary financial and social support in the event of events that undermine their economic stability, while respecting the principles of solidarity and fairness enshrined in the social security insurance system.
Basic and supplementary social security in Bulgaria are key elements of the social security insurance system that function together to provide social protection and financial stability to citizens. They are regulated by Social Security Code (CSR)and have different scope, objectives and funding mechanisms.
Basic social security is the mandatory part of the system and provides basic protection against social risks, such as:
This form of social security insurance is universal and applies to all persons who carry out labor activity or receive income in the country. Funds for basic social security insurance are collected through compulsory social security insurance contributions made by the insurer (employer) and the insured person. These funds are accumulated in various funds of the National social security insurance Institute (NOI), such as:
Basic social security operates on the principle of solidarity, in which contributions from actively insured persons finance the benefits and pensions of those already in need.
Supplementary social security insurance is divided into two main types: mandatoryand Voluntary. It provides an opportunity to accumulate individual funds that complement the basic protection of the basic social security insurance.
Supplementary social security insurance gives insured persons more flexibility and the opportunity to better plan their retirement, with funds accumulated in individual accounts and managed through investments.
Pension funds in Bulgaria are an essential element of the social security system and are regulated in the Social Security Code (CSR). They provide an opportunity to accumulate pension funds, providing protection for individuals in the event of risks such as old age, disability and death. The types of pension funds are divided into three main categories: supplementary compulsory pension social security insurance (SPD) funds, voluntary supplementary pension social security insurance funds (VOD) and state funds within the framework of state social security insurance (LLC).
Pursuant to Article 1 (2) (2) (a) of the CSR, universal pension fundsare part of the supplementary compulsory pension social security insurance. They are mandatory for persons born after December 31, 1959, who are insured for a pension under the order of state social security insurance. social security insurance contributions to these funds are accumulated in individual accounts and are managed by licensed pension social security insurance companies. Upon reaching retirement age, insured persons receive an additional pension, which supplements the pension from the State Pension Fund (Art. 120, para. 1 of the Code of Civil Procedure). UPFs grant the right of inheritance to the accumulated funds, which makes them preferred for additional collateral.
Occupational pension funds are mandatory for persons who work under the conditions of the first and second categories of labor (Art. 1, para. 2, item 2, letter “a” of the CSO). They provide for early retirement before reaching the general retirement age, the accumulated funds are paid out in the form of a term pension. Contributions to the PPF are entirely at the expense of the employer, which facilitates employees working in risky conditions. The management of these funds is under the strict supervision of the Financial Supervision Commission (FSC), and insurers have the right to information about the accumulated funds and their management.
According to Article 1, paragraph 2, item 2, letter “b” of the CSR, voluntary pension funds provide the possibility of individual or group social security insurance at the request of the insured persons. These include:
The funds in the VAT are managed by pension social security insurance companies, and the return on investments increases the accumulated amounts. These funds are flexible, heritable and allow the use of funds in the form of one-time payments or term pensions.
The Pension Fund is part of the state social security insurance, which is mandatory for all persons with income subject to social security insurance (Art. 2, para. 1 of the CSO). Contributions to this fund are used to pay pensions according to the cost-covering principle, in which current social security insurance contributions cover the pensions of current pensioners. Unlike additional pension funds, accrued contributions to an LLC are not inheritable. Pensions from this fund are paid directly by the National social security insurance Institute (NOI) and are the main source of income for pensioners.
Pension funds in Bulgaria provide a variety of solutions to ensure financial stability at retirement age, allowing citizens to plan and manage their future income with the support of the state and private funds.
Basic social security in Bulgaria is a key mechanism for social protection, which has as its object the regulation of public relations related to the provision of income and compensation in the event of the occurrence of certain social risks. The regulation of these relations is mainly regulated in Social Security Code (CSR), which outlines the principles, scope and functions of basic social security insurance.
The subject of regulation of basic social security covers social and legal relations related to the provision of benefits, allowances and pensions to persons who are temporarily or permanently unable to engage in labor activity. According to Article 1, paragraph 1 of the CSR, these relations are aimed at securing livelihoods in the event of risks such as:
The scope of basic social security insurance includes compulsory social security insurance for persons who are engaged in labor activity or receive income from various sources (Art. 4, para. 1 of the CSR). This social security insurance is financed through social security insurance contributions collected by employers and insured persons, which are managed by National Social Security Institute (NOI).
The functions of basic social security are diverse and aimed at achieving social security and economic stability of insured persons. The main functions include:
The method of regulation of basic social security in Bulgaria is characterized by the use of special legal mechanisms and principles that guarantee the efficiency, fairness and sustainability of the social security insurance system. Regulation is clearly defined in Social Security Code (CSR)and includes the mandatory nature of social security insurance, centralized management of funds and control by the state. Here are the main aspects of this method:
The method of regulation of basic social security is based on the mandatory participation of all persons who fall within the scope of Article 4, paragraph 1 of the CSR. This means that working persons, employers and other entities are obliged to make social security contributions in the event of certain risks. The mandatory nature ensures that the system covers all participants in labor and economic activity, while ensuring solidarity between different generations and social groups.
The regulation method uses centralized management by National Social Security Institute (NOI), which administers the collection and distribution of funds in the various social security insurance funds, such as “Pensions”, “General Illness and Maternity”, “Unemployment” and others (Art. 2 of the CSR). This centralised structure ensures that funds are spent in a targeted manner, transparently and in accordance with legal requirements.
The regulation of basic social security is described in detail in the CSR through provisions that clearly define the rights and obligations of all participants. For example:
This regulatory framework ensures predictability and security for both insured persons and social security insurance institutions.
The State exercises strict control over the functioning of the system through the Financial Supervision Commission (FSC) and the NOI. These institutions monitor the correct application of the law, the collection of contributions, the management of funds and the payment of benefits. In addition, insured persons have the right to check their individual social security insurance accounts and file complaints in case of violations.
The method of regulation uses the principle of solidarity, in which current social security insurance contributions are used to pay benefits to persons who are at risk. This financial mechanism ensures the sustainability of the system and the distribution of funds for the benefit of all insured persons, regardless of their current contribution.
Regulation also includes administrative and legal mechanisms that facilitate interaction between insured persons, employers and institutions. For example:
The Code provides for penalties for persons and employers who do not fulfill their obligations, such as non-payment of social security insurance contributions on time (Art. 355 of the Code of Civil Procedure). This ensures discipline and compliance with the rules in the social security insurance system.
Basic social security in Bulgaria is based on several key principles that guarantee the efficiency, fairness and sustainability of the system. These principles are clearly defined in Social Security Code (CSR)and serve to guide the legal and organizational framework of the social security system. They are fundamental to achieve the objectives of social protection and to ensure the financial stability of insured persons.
Basic social security is compulsory for all persons who carry out labor activity or receive income referred to in Article 4, paragraph 1 of the CSR. This means that all insured persons and their employers are obliged to make social security insurance contributions, thereby guaranteeing their participation in the system and the right to benefits in the event of social security insurance risks. This principle ensures broad coverage and solidarity between all participants in the social security system.
One of the most important principles of the social security system is solidarity between different social groups and generations. This principle ensures that the current social security insurance contributions of the active population finance the benefits and pensions of those who are already in need, such as pensioners, sick or unemployed people. Solidarity ensures the sustainability of the system by distributing the burden of social security insurance among all actors, regardless of their individual contribution at the particular moment.
According to Article 3, paragraph 1 of the CSR, all insured persons have equal rights and obligations under the same conditions. This means that anyone who meets the legal requirements can access benefits and pensions, without discrimination based on gender, age, ethnicity or other grounds. The principle of equal treatment ensures fairness and transparency in the allocation of social security insurance resources.
Equivalence in the social security insurance system refers to the relationship between the social security insurance contributions made and the amount of benefits or pensions that the insured person receives. The higher the social security insurance contributions and seniority of the person, the higher the amount of benefits and pensions received by him. This principle combines individual interest with the common good and encourages individuals to participate actively in the social security insurance system.
The state plays a key role in the regulation and control of basic social security. Through bodies such as the National social security insurance Institute (NII) and the Commission for Financial Supervision (CFN), the State monitors compliance with the legislation, the proper management of social security insurance funds and the fulfillment of obligations by employers and insured persons. In addition, the state guarantees the rights of insured persons by ensuring the financial stability of the system by intervening in cases of deficits.
This principle applies in basic social security insurance, where current social security insurance contributions are used to cover the costs of benefits and pensions of insured persons. According to Article 3, paragraph 2 of the CSR, the funds are spent purposefully to cover certain social risks. This principle ensures that the system functions efficiently and sustainably, despite economic fluctuations.
The funds accumulated in the social security insurance funds are used exclusively for the purposes provided for by law. For example, funds in the General Sickness and Maternity Fund can be spent only on benefits for temporary incapacity for work, maternity and related social risks (Art. 2 of the CSR). The targeting of costs ensures transparency and efficiency in the management of social security insurance funds.
In addition to the classical principles, the Bulgarian system includes the possibility of inheriting the accumulated funds in the universal and voluntary pension funds. This provides additional security for the families of insured persons and stimulates them to participate actively in the system.
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Persons exercising the liberal professions are obliged to make social security contributions on their chosen insurance income, which may not be lower than the minimum social security income established by the Law on the State Social Insurance Budget for the relevant year, pursuant to Article 6, paragraph 7 of the Social Insurance Code (CSR). The maximum social security income is also legislatively established. In cases where the income from the activity exceeds the declared minimum insurance income, the persons must submit an annual tax return in accordance with the Personal Income Taxes Act (ZDDFL), pursuant to Art. 40, para. 1, item 2 of the Health Insurance Act (WHO). The equalisation of health insurance is made on the basis of the final amount of taxable income for the relevant year, and the health insurance contributions are paid on the difference between the declared insurance income and the actual taxable income. This ensures fairness in the financing of the system and the right of the person to access health services. Persons are obliged to pay the difference in insurance contributions within the time limits established by law, and delays are subject to interest according to Art. 175 of the Tax and Insurance Procedure Code.
Pursuant to Article 7 (1) of the Civil Code, employers are obliged to pay the insurance contributions due for all insured persons by the 25th day of the month following the month to which the contributions relate. These contributions cover both the amounts due by the insured persons and the contributions that employers are obliged to assume according to the distribution of the insurance burden. It is important to note that in case of delay in payments, interest is charged for late payment, which is calculated according to Art. 113 of the Tax and Insurance Procedure Code. Employers are obliged to submit monthly declarations for insurance contributions through the electronic system of the National Insurance Institute (NOI), and failure to submit these declarations on time is also subject to penalties.
According to Article 40, paragraph 1 of the CSR, self-insured persons are entitled to monetary compensation for temporary incapacity for work only if they have chosen to insure themselves for the risk “General illness and maternity”. The right to compensation arises upon the occurrence of an illness, an accident at work or another cause of temporary incapacity for work, which is certified by a sick leave sheet. The insured person must have paid the insurance contributions due in full for the period of 6 calendar months preceding the month of the onset of incapacity for work in order to be entitled to benefit. The amount of the benefit is calculated on the basis of the person's social security income for the previous 18 months and is paid by the NOI. If the self-insured person is not insured for this risk or has unpaid contributions, he is not entitled to compensation.
