As everybody knows, the labor legislation is quite dynamic in our days. The payroll is an important part of the accounting system. There are several changes regarding the payroll, which entered into force as of Sunday, January 01, 2017.
We’ve decided to inform you about the three most important changes for 2017:
The first change is associated with the minimum monthly wage. The updated medium-term budget forecast of the Government for the period 2017-2019 provides for an increase in the minimum wage to BGN 460 /from BGN 420/ as from January 1st, 2017 and to keep it at this level in 2018 and 2019.
The minimum wage increase has been made possible by the economic growth, the steady GDP rates in recent years, the larger number of employees, and the rise of the average wage. The idea is to encourage job seekers, to guarantee a better satisfaction of the needs of minimum wage earners and their families, and to reduce the risk of working poor. Despite this change, the Labor force in Bulgaria has been very attractive for foreign investors. Please, check the information from the table regarding the minimum wages in the European Union.
The second important change with the payroll are the social securities contributions. The social contributions paid under labor contracts grow by one percentage point, with 0.56% of this paid by the employer and 0.44% paid by the employee / total 1%/. One more percentage point will be added in 2018.
The third and most important change affect mainly the owners of small companies and freelancers. The minimum insurance income for self-insuring workers rises and is now BGN 460 /from BGN 420/.
We believe people are one of the most important assets of every company. It’s critical to avoid understating of your payroll system. If you have any questions about the changes in the labor legislation, don’t hesitate to contact us. Our accounting company is specialized provider of payroll services in Bulgaria. You can find out more about our payroll services here.