Social risks against which persons benefiting from the State social security system may be covered

The contributions of persons covered by the State social security system are paid to:

- the Non-occupational Disease and Maternity Fund to cover against the risks of non-occupational disease and maternity. This includes cover against temporary incapacity, temporary decrease in working capacity and maternity;

- the General Pension Fund to cover against disability resulting from non-occupational disease and the risks of old age and death;

- the Pension Fund for persons referred to in Article 69 [of the Social Security Code (KSO)] to cover against disability resulting from non-occupational disease and the risks of old age and death;

- the Occupational Accidents and Diseases Fund to cover against occupational accidents and diseases. These include: disability, death, temporary incapacity and temporary decrease in working capacity, where these result from occupational accidents or diseases;

- the Unemployment Fund to cover against unemployment.

Payments granted by the State social security system

The State social security system grants benefits, allowances and pensions in the event of:

- temporary incapacity;

- temporary decrease in working capacity;

- disability;

- maternity;

- unemployment;

- old age;

- death.

Persons covered by mandatory social security against non-occupational disease and maternity (Non-occupational Disease and Maternity Fund) and disability resulting from non-occupational disease, old age and death (General Pension Fund, Pension Fund for persons referred to in Article 69; teachers — Pension Fund for Teachers); persons covered against occupational accidents and diseases (Occupational Accidents and Diseases Fund) and unemployment (Unemployment Fund)

The persons below are covered by mandatory social security against non-occupational disease, maternity and disability resulting from non-occupational disease, old age and death. They are further covered against occupational accidents and diseases and unemployment:

- workers and employees;

- civil servants under the Civil Servant Act;

- judges, prosecutors, investigating police officers, state bailiffs, certifying judges, court clerks, members of the Supreme Judicial Council, inspectors with the Inspection Service of the Supreme Judicial Council, applicants to fill junior judge, junior prosecutor and junior investigating police officer positions;

- service people under the Republic of Bulgaria Defence and Armed Forces Act, reservists when on active duty under the Republic of Bulgaria Military Reserve Force Act, civil servants under the Ministry of the Interior Act and the Sentence Enforcement and Incarceration Act, civil servants under the State Agency for National Security Act, the State Intelligence Agency Act and the Special Means of Investigation Act, commissioned and non-commissioned officers under the National Security Service Act and the persons referred to in Article 69(6) of the Social Security Code;

- general and commercial managers at trading companies, sole traders, their branches or the branches of foreign legal persons, members of the boards of directors and management and supervisory boards of trading companies, controllers of trading companies, bankruptcy administrators, liquidators, persons executing control contracts in respect of unincorporated enterprises and persons tasked with the management and/or control of the State-owned or municipal enterprises referred to in Chapter Nine of the Commerce Act, their subsidiaries or other legal persons established by a law;

- elected officials, ministers of the Bulgarian Orthodox Church holding religious titles and persons holding religious office with respect to other religions registered according to the Religion Act.

Seafarers are obliged to pay their own mandatory social security contributions to be covered against non-occupational disease, maternity and disability resulting from non-occupational disease, old age and death and occupational accidents and diseases. They may specify the amount of their contribution base, but this can only range between the minimum and maximum amounts of the contribution base for self-employed persons in the State Social Security System Budget Act for the relevant year. If seafarers wish to be covered against unemployment, they may pay the relevant contributions entirely at their own expense.

Persons not covered by the Unemployment Fund

Persons benefiting from schemes designed to support maternity and promote employment are not covered against unemployment. Unless the relevant scheme explicitly provides for this, no contributions are paid to the Unemployment Fund.

Members of co-operatives who engage in work without a contract of employment, including those elected to their management structures who have not concluded a contract [with the cooperative], are not covered against unemployment.

Nevertheless, the persons above are covered by mandatory social security against non-occupational disease, maternity and disability resulting from non-occupational disease, old age and death and occupational accidents and diseases.

Persons who engage in work without a contract of employment (service contract) duly concluded with a contracting entity and self-employed persons are not covered against unemployment.

Persons paying voluntary social security contributions at their own expense are also not covered against unemployment. These include:

- persons sent to work abroad by a Bulgarian job placement service;

- persons employed by international bodies or organisations with the consent of the competent Bulgarian government agencies;

- the spouses of officials on long-term postings at diplomatic missions (for the duration of their residence abroad and while the officials perform their duties);

- the spouses of persons registered as practicing a liberal profession and/or engaged in a skilled craft and [the spouses] of registered farmers and tobacco producers, where they engage in work alongside those with their consent. Nevertheless, the above are covered against non-occupational disease, maternity and disability resulting from non-occupational disease, old age and death.

Persons who engage in work under an employment contract in respect of short-term seasonal agricultural labour are not covered against unemployment either.

Maximum monthly amount of the contribution base

The maximum monthly amount of the contribution base is fixed each year in the State Social Security System Budget Act.

The maximum amount of the contribution base is fixed as a monthly figure and is not reduced pro rata if a person has not engaged in work during all working days in a given month. This means that, where the person covered by social security has only engaged in work for part of a calendar month and their income stands at BGN 3 000, their social security contributions are calculated based on these BGN 3 000 and are not reduced pro rata to reflect the number of days worked.

Social security contributions calculated on the basis of social costs

The amounts relevant to social costs either received or scheduled for payment form part of the contribution base where these amounts are granted in line with the requirements set out in Article 2 of the Regulation on the components of remuneration and the contribution base.

For social costs to be taken into account when calculating social security contributions, they must be granted directly to workers and employees either regularly or intermittently and either in cash or in kind.

Where social costs are not granted directly to persons covered by social security either regularly or intermittently, they do not form part of the contribution base. Social costs granted for use in canteens, including where these serve to reduce the price of food, at medical and childcare establishments and recreational facilities as well as to meet the cultural life needs of workers and employees are not used when calculating social security contributions. In addition, social security contributions are not paid where employers already pay their staff’s social security contributions calculated based on social costs as part of voluntary pension schemes, voluntary health insurance schemes and voluntary professional qualification and unemployment schemes.

One-off allowances in cash or in kind to cover medicine costs, or in the event of prolonged illness, [a worker or employee giving] birth, death in the family and other events occurring inadvertently, paid by employers using the amounts allocated to covering workers and employees’ social costs are not used when calculating social security contributions.

Amounts taking the form of food vouchers given to workers and employees are not used when calculating social security contributions either.

The social costs paid or scheduled for payment to workers and employees form part of their gross remuneration used for calculating cash benefits in the event of temporary incapacity, pregnancy and birth, or where a child under 5 years of age is adopted, since the calculation of the social security contributions paid to the Non-occupational Disease and Maternity Fund includes these amounts, too.

The amounts of social costs already paid form part of the calculation of a person’s net remuneration but only after the mandatory social security contributions paid by natural persons and the tax due according to the Law on the Income Taxation of Natural Persons have been deducted.

Social costs are not taken into account when calculating the minimum contribution base. This is fixed for each economic activity and qualification-based occupation group.

Where social security contributions have been paid or are due in respect of social costs already paid or scheduled for payment, the social costs are taken into account when calculating the base used to determine the pensions of persons covered by social security.

Social security contributions calculated based on social costs may be paid to all four funds forming part of the State social security system: to the General Pension Fund or the Pension Fund for persons referred to in Article 69, as the case may be (depending on the category of labour); to a supplementary mandatory pension scheme managed by an occupation-specific or general retirement fund, or by the General Pension Fund or the Pension Fund for persons referred to in Article 69, as the case may be, with the social security contribution of persons who have opted to change [their provider] pursuant to Articles 4b and 4c of the Social Security Code being higher; to the Non-occupational Disease and Maternity Fund, the Unemployment Fund and the Occupational Accidents and Diseases Fund.

Additional financial incentives forming part of the contribution base

The calculation of the contribution base must take into account the fact that financial incentives (premiums and other remuneration) form part of the gross remuneration for the months to which they refer. The additional forms of remuneration paid, i.e. the so-called Easter, Christmas and bonus salaries and other such remuneration paid pursuant to a collective bargaining agreement (CBA) or a dedicated decree of the Council of Ministers and not considered premiums for a preceding period, refer to the month for which they are paid.

Method of calculating the social security contributions of persons whose income derives from more than one type of activity

The social security contributions of persons whose income derives from more than one type of activity are determined on the basis of the sum total of their contribution bases. This sum total cannot exceed the fixed maximum monthly amount of the contribution base. The contributions are determined and follow the order indicated:

1. income from activities in which the persons engage in accordance with the order set in Article 4(1) and (10) of the Social Security Code;

2. income from benefits paid pursuant to the Labour Code or other acts under which social security contributions are payable;

3. [part of the contribution base] from the person’s activities as a sole trader, or the owner of or partner in a trading company or unincorporated enterprise, as a person taxed according to the procedure set out in Article 26(7) of the Law on the Income Taxation of Natural Persons, which concerns persons practicing a liberal profession and/or engaged in a skilled craft, registered farmers and tobacco producers;

4. income from work without a contract of employment.

Period covered by social security

The period covered by social security begins to run as from the date on which a person begins to engage in work, where social security contributions have been paid or are due in respect of this date, and ends when the person stops engaging in said work.

During periods not formally covered by social security, the person is indeed not covered even if they continue to engage in work.

Contracts of employment as a basis for the provision of social security to workers and employees

Workers and employees are covered by mandatory social security contributions against non-occupational disease and maternity (Non-occupational Disease and Maternity Fund) and disability resulting from non-occupational disease, old age and death (General Pension Fund).

They are further covered against occupational accidents and diseases (Occupational Accidents and Diseases Fund) and unemployment (Unemployment Fund) regardless of the number of days or hours worked during a calendar month and irrespective of their number of effective contracts of employment.

Teachers’ old-age pension contributions stand at 4.3 % and are paid in full by their employer to the Pension Fund for Teachers.

Two conditions must be cumulatively met for a person to be covered by social security and thus be entitled to the cash benefits and allowances envisaged in the Social Security Code:

- They must engage in work constituting grounds for social security coverage.

- Social security contributions calculated on the basis of their remuneration (paid, scheduled for payment or yet to accrue) must either have been paid or be due.

Workers and employees whose first day of work under a contract of employment coincides with the first day of a period during which they come to suffer a temporary incapacity are not covered by social security. Workers and employees who take unpaid leave [pursuant to the Social Security Code] or other acts as from their first day of work under an employment contract are not covered by social security either. In the cases above, these persons only begin to be covered once their authorised leave has ended.

Workers and employees who request paid annual leave running as from their first day of work are covered by social security.

Worker and employee contribution base

The contribution base of workers and employees is made up of all their remuneration, including that scheduled for payment but not yet paid, and other income accruing from work. The social security contributions of a worker or employee is calculated using their gross monthly remuneration or an amount that is at least equal to the minimum contribution base fixed in the State Social Security System Budget Act for the relevant year, as the case may be. The contributions of persons to whom the minimum contribution base above is not applied are calculated as an amount that ranges between the minimum wage in Bulgaria and the maximum contribution base.

The minimum contribution base of workers and employees depends on the economic activity in which their employers engage and the qualification-based group of which their occupation forms part. The minimum contribution base when working time is determined as a whole for a period of more than one month is calculated as the sum total of the minimum contribution bases for the relevant main economic activities and qualification-based occupation groups. For persons without a fixed minimum contribution base, it is equal to the minimum monthly wage in Bulgaria for the period during which working time is determined as a whole.

The maximum contribution base for persons whose working time is determined as a whole during a period of over one month is calculated as the sum total of the maximum monthly contribution bases for the period during which working time is determined as a whole.

Where the actual number of hours worked, among others, for which social security contributions are paid in the timetable agreed with the employer for a relevant month exceeds the person’s statutory working hours, the monthly contribution base may exceed that fixed in the State Social Security System Budget Act for the relevant year. The total contribution base for the period during which working time is determined as a whole may not exceed the sum total of the maximum monthly contribution bases for the period during which working time is determined as a whole. Whether this cap has been reached is ascertained by adding the actual contribution base accruing over the first month and the following ones until the sum total of the maximum monthly contribution bases for the period during which working time is determined as a whole is reached.

Determining [an employer’s] main economic activity for the purpose of calculating the minimum contribution base

[An employer’s] main economic activity must be determined for the purpose of calculating the minimum contribution base. This requires ascertaining which group of workers or employees is the most numerous.

According to the Regulation on the elements of remuneration and the contribution base, where an employer has two or more economic activities, its main activity is that in which the highest number of workers and employees engage. In such cases, workers and employees engaged in the general administration of all activities of the employer, i.e. those engaged in ancillary activities, are not taken into account. Ancillary activities are those that exist solely to support the employer in conducting its main economic activity. These include accounting, transport and storage, supplies, sales, repairs and maintenance, etc.

Where equal numbers of workers and employees under contracts of employment engage in more than one activity, the employer chooses which of its economic activities is the main one.

An employer’s main economic activity, as used for the purpose of calculating the minimum contribution base for its staff covered by social security, is determined at the end of each calendar month. The number of staff covered by social security includes all persons in employment during a [calendar] month, including those who went on to leave, newly recruited staff or staff whose economic activity changed. Where workers and employees covered by social security go on to engage in a different economic activity with the same employer, in case the employer conducts several activities, these persons are considered to engage in the activity that they practiced as at the end of the month.

Where a person covered by social security changes their position during a given calendar month, the amount of their minimum contribution base is determined pro rata, depending on the number of days worked.

Where a person covered by social security works under a contract of employment for more than one employer, each employer must calculate a minimum contribution base depending on the time the person spent working for it.

Where a person covered by social security holds more than one position but works for the same employer, they are deemed to engage in the activity that occupies the greatest share of their working time and assigned the relevant code. It should be borne in mind that, where a person holds more than one position, priority is given to the positions relating to production over those relating to trade, transport or services. Where duties requiring qualifications that entail a different level of education and professional experience are combined, priority is given to those requiring the highest qualification.

Workers and employees with respect to whom the minimum contribution base is not used

The minimum contribution base by main economic activity and qualification-based occupation group is used with respect to workers and employees in the budgetary sector.

Within the meaning of § 1(1) of the Additional Provision of the Accountancy Act, ‘budget-financed enterprises’ means all entities implementing budgets and [managing] accounts used for financial resources from the European Union and external funds according to the Public Finance Act. Such enterprises include the National Social Security Institute, the National Health Insurance Fund, public higher education establishments, the Bulgarian Academy of Sciences, the Academy of Agriculture, the Bulgarian National Television, the Bulgarian National Radio, the Bulgarian News Agency and all other entities considered budgetary organisations within the meaning of § 1(5) of the Additional Provisions of the Public Finance Act.

Minimum contribution base of workers and employees who did not complete their full working hours during a calendar month

The social security contributions of workers and employees under a contract of employment are calculated on the basis of their gross remuneration, be that paid, scheduled for payment or yet to accrue, and their remuneration during paid leave pursuant to the Labour Code. The contribution base may not be less than the minimum monthly contribution base for the occupation and economic activity concerned.

The remuneration used for calculating the minimum contribution base above does not include social costs in respect of which social security contributions have already been paid or are due.

Where a person has not completed their full working hours during a calendar month or has been on leave not included in the types of paid leave above, the amount of contributions depends on the minimum monthly contribution base for the relevant occupation and the main economic activity of the employer. Said income is reduced pro rata to reflect the number of days worked during the [calendar] month.

The days worked and included in the pro rata reduction of the minimum contribution base do not include periods of unpaid leave and days during which the person received benefits for temporary incapacity due to [non-occupational] disease, or benefits for pregnancy, childbirth or raising a child under 2 years of age or adopting a child under 5 years of age.

In addition, for months in which only advance payments have been made, are scheduled for payment or are due to accrue, social security contributions depend on the fixed minimum contribution base corresponding to the relevant economic activity and occupation group.

Where working time is determined as a whole during a period of over one month and where the hours worked and other periods for which social security contributions are paid either fall below or exceed the working hours agreed with the employer in the timetable for the relevant month, the monthly contribution base may either be smaller or greater than the fixed amount. In such cases, the minimum monthly contribution base is determined for each month of the period in question. This is done by dividing the sum of the minimum monthly contribution bases for the relevant occupation forming part of the employer’s main economic activity or, respectively, the sum of the minimum wages by the statutory working time for the period during which working time is determined as a whole and then multiplying the amount obtained by the hours worked and other periods for which social security contributions are generally paid according to the person’s monthly timetable for prepared by the employer.

Where the remuneration of workers and employees is higher than the minimum contribution base, the contributions are calculated based on the remuneration paid, scheduled for payment or yet to accrue.

 Worker and employee income not forming part of the contribution base

Social security contributions are not payable for the following amounts paid to workers and employees:

- daily subsistence allowances for posted workers, where these do not exceed twice the amount specified in an effective legal instrument; travel and accommodation allowances for posted workers or remuneration in lieu of those;

- the cost of food and/or food supplements provided in kind and free of charge to workers and employees at certain enterprises having special working arrangements;

 the cost of food provided in kind and free of charge to crew on vessels for the periods when the vessels are active, to fishers for the periods when fishing takes place and to divers for the days when they are called upon to dive, to on-duty staff doing twelve-hour shifts in medical establishments and health facilities, to teams of medical professionals performing surgery, emergency medical teams and blood collection teams;

- the cost of workwear, uniforms, ceremonial clothing and official clothing provided under the terms and according to the procedure laid down in a legal instrument;

- the cost of specialised workwear and personal protective equipment provided in kind under the terms and according to the procedure laid down in a legal instrument or a collective bargaining agreement. Where these are provided according to the internal rules of an enterprise, social security contributions are payable. Social security contributions are payable where amounts for the purchase of specialised workwear and personal protective equipment have been granted;

- the interest paid pursuant to Article 245(2) of the Labour Code;

- reimbursed transport costs of teaching professionals enabling them to travel from their place of residence to their place of work and back or, alternatively, the cost of renting accommodation at the settlement where their place of work is located.

Social security contributions are not paid in respect of cash benefits granted in the event of temporary incapacity, or pregnancy, childbirth and raising a child under 2 years of age or adoption of a child under 5 years of age.

Calculating social security contributions where the person covered works under more than one contract of employment

Where a worker or employee works under more than one contract of employment, the amount of their social security contributions is based on the sum total of the remuneration paid, that scheduled for payment and the remuneration yet to accrue. The person must declare the contribution base before each employer coming after their first, respecting the order set out in Article 6(11) of the Social Security Code:

1. income from activities in which the person engages in accordance with the order set in Article 4(1) and (10) [of the Social Security Code];

2. income from benefits paid pursuant to the Labour Code or other acts under which social security contributions are payable;

3. [part of the contribution base] from the person’s activities as a sole trader, or the owner of or partner in a trading company or unincorporated enterprise, as a person taxed according to the procedure set out in Article 26(7) of the Law on the Income Taxation of Natural Persons, which concerns persons practicing a liberal profession and/or engaged in a skilled craft, registered farmers and tobacco producers;

4. income from work without a contract of employment.

Where the remuneration under a person’s first contract of employment is equal to or greater than the maximum contribution base, contributions are not paid in respect of the remuneration from their second employer. Where the remuneration under a person’s main contract of employment is smaller than the maximum contribution base, the social security contributions payable under the second contract of employment are calculated based on remuneration paid, that scheduled for payment and the remuneration yet to accrue and may not exceed the amount left before the maximum contribution base is reached.

Social security arrangements for workers and employees posted or sent to an EU Member State, a State that is party to the Agreement on the European Economic Area or the Swiss Confederation and those falling within the scope of Article 12(1) of Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems

The social security contributions of these persons are calculated based on the gross monthly remuneration paid, that scheduled for payment and the monthly remuneration yet to accrue, as well as other income from employment in the host country and in Bulgaria, but the contribution base may not stand at less than the minimum wage in the host country.

General overview

The following fall within the scope of the definition of self-employed persons in the Social Security Code: persons registered as practicing a liberal profession and/or a skilled craft; persons engaged in work in their capacity as sole traders, or owners of or partners in trading companies, and natural persons who are partners in unincorporated enterprises; traders within the meaning of the Commerce Act not registered as sole traders; farmers and tobacco producers.

 The persons registered as practicing a liberal profession and/or a skilled craft engage in work:

- following registration, when required by a legal instrument: for notaries public, lawyers, chartered accountants; licensed appraisers, experts with the court and public prosecution, medical professionals, insurance agents;

- on which a presumptive flat-rate tax is levied, where the persons are not sole traders;

- where these engage in professional activities at their own risk and at their own expense: scholars, artists, education professionals, architects, experts in economics, engineers, journalists and other individuals practicing a liberal profession and having an EIK (unique identification code) in the BULSTAT register.

Social security obligations of self-employed persons

The obligation of self-employed persons to pay their own social security contributions arises as from the date on which they start to engage in or resume work and continues until they suspend or terminate their work.

Obligation of self-employed persons to register as such when they begin to engage in work

Self-employed persons are under an obligation to register as such when they begin to engage in their work by submitting a standard statement to the competent local office of the National Revenue Agency not later than seven days after they have started their work.

The suspension, termination or resumption of work are declared in a dedicated statement submitted not later than seven days after the relevant circumstance has occurred.

If they opt to do so, the persons registered as practicing a liberal profession and/or a skilled craft, the persons engaged in work in their capacity as sole traders, or owners of or partners in trading companies, and natural persons who are partners in unincorporated enterprises, traders within the meaning of the Commerce Act not registered as sole traders, registered farmers and tobacco producers may pay social security contributions according to the procedure laid down in a dedicated regulation, where they do not receive pensions.

Social risks against which self-employed persons are covered

Self-employed persons pay mandatory social security contributions against the risks of disability resulting from non-occupational disease, old age and death. They may also pay contributions to be covered against the risks of non-occupational disease and maternity.

Obligation of self-employed persons to declare the type of social security contributions they plan to pay

Self-employed persons declare the type of social security contributions they plan to pay by submitting a standard statement to the local office of the National Revenue Agency not later than seven days after they have started or resumed their work. If they fail to submit the statement within the seven-day period above, self-employed persons only pay contributions against the risks of disability resulting from non-occupational disease, old age and death.

Where a self-employed person has submitted the statement in which they declare that they have started or resumed their work after the prescribed seven-day period, they are deemed covered only against disability resulting from non-occupational disease, old age and death.

Period in which self-employed persons may change the type of social security contributions they pay

Self-employed persons may change the type of social security contributions they pay between 1 and 31 January of the relevant calendar year. [Once this period has ended,] the type of contributions cannot change for the rest of the year even in cases where a self-employed person suspends and resumes, or starts to engage in, work as a self-employed person.

Social security arrangements for self-employed persons receiving a pension

If they choose to, self-employed persons receiving a pension may pay social security contributions. Self-employed persons receiving a pension begin to be covered by social security as from the date on which they submit a standard statement whose model has been approved the Executive Director of the National Revenue Agency to the competent local office of the National Revenue Agency. This statement is used to declare the start, suspension, resumption or termination of work [as a self-employed person].

Period for the payment of social security contributions by self-employed persons

Self-employed persons pay their advance social security contributions by the twenty-fifth day of the month following that for which they are paid.
The amount of the monthly social security contributions is calculated using a contribution base [expressly indicated by the self-employed person] for this purpose. The base cannot be lower than the minimum or higher than the maximum monthly contribution base. The minimum and maximum amounts above are fixed in the State Social Security System Budget Act for the relevant year.

Procedure for calculating the social security contributions of self-employed persons engaged in more than one work activity in their capacity as self-employed persons

Self-employed persons engaged in work on a number of grounds pay advance contributions in respect of one of these and are free to choose which one.

Where self-employed persons engage in work on other grounds and receive income from this, their social security contributions are calculated based on the sum total of the income received. In such cases, the monthly contribution base may not exceed the fixed maximum monthly contribution base.

Advance [contributions determined by reference to the] monthly contribution base of farmers and tobacco producers, where these also engage in work as self-employed persons

Where registered farmers and tobacco producers engage in other activities as self-employed persons, they cannot pay advance contributions calculated based on the minimum monthly contribution base fixed for farmers and tobacco producers. In such cases, the minimum monthly contribution base must not be smaller than the contribution base fixed for the activity outside the sphere of agriculture.

Social security arrangements for self-employed persons who engage in work under a contract of employment in addition to their work as self-employed persons

Where a self-employed person is also covered pursuant to Article 4(1) and (10) of the Social Security Code, their social security contributions are determined, taking into account the sum total of their incomes, which are added together respecting the order below:

- income from activities in which the person engages in accordance with the order set in Article 4(1) and (10) [of the Social Security Code];

- income from benefits paid pursuant to the Labour Code or other acts under which social security contributions are payable;

- contribution base for activity as a self-employed person. In this case, the monthly contribution base may not exceed the fixed maximum monthly contribution base.

Social security arrangements for self-employed persons not working under a contract of employment, irrespective of the activity stated in their registration

When they pay remuneration to self-employed persons with whom they have not concluded a contract of employment, contracting entitles do not pay social security contributions for them, nor do they deduct their amount from said remuneration. Self-employed persons are under an obligation to include this remuneration when they determine the final amount of the contribution base, irrespective of the activity stated in their registration. The sum total of the final amounts above may not be smaller than the minimum monthly contribution base.

Periods for which self-employed persons do not pay social security contributions

Self-employed persons already covered against non-occupational disease and maternity do not pay social security contributions during the periods in which they receive cash benefits for temporary incapacity, pregnancy, childbirth and raising a child under 2 years of age or adoption of a child under 5 years of age and during periods of temporary incapacity, pregnancy, childbirth and raising a child under 2 years of age or adoption of a child under 5 years of age in which they were not entitled to cash benefits.

Social security arrangements for self-employed persons only paying contributions for periods of temporary incapacity, pregnancy, childbirth and raising a child under 2 years of age or adoption of a child under 5 years of age to the General Pension Fund

Persons only covered against disability due to non-occupational disease, old age and death pay social security contributions for the periods of temporary incapacity, pregnancy, childbirth and raising a child under 2 years of age or adoption of a child under 5 years of age.

Determining the final amount of the contribution base of self-employed persons

The final amount of the monthly contribution base is determined for the period of the previous year during which the self-employed person worked and is based on the data stated in a table forming part of the person’s annual tax return. It may not be smaller than the minimum amount or greater than the maximum amount of the monthly contribution base fixed for the relevant year. The monthly taxable income of a self-employed person is calculated by dividing the total taxable income by the number of months during which the person worked, irrespective of the number of days they were active during each month. The remainder the contribution base (calculated after the end of the relevant calendar year) is determined by subtracting the income based on which social security contributions have already been paid from the total income based on which the contributions due are calculated.

Social risks against which seafarers are covered

Seafarers pay their social security contributions entirely at their own expense and are covered against non-occupational disease, maternity and disability resulting from non-occupational disease, old age, death and occupational accidents and diseases. Where seafarers wish to be covered against unemployment, they may pay the relevant contributions entirely at their own expense.

The period covered by social security begins to run as from the date on which a person begins to engage in work, where social security contributions have been paid or are due in respect of this date, and ends when the person stops engaging in said work.

Contribution base

Seafarers’ social security contributions are calculated based on their monthly contribution base. Its amount may range between the minimum and the maximum contribution base for self-employed persons fixed in the State Social Security System Budget Act for the relevant year.

The seafarer formally states the type of contributions they wish their employer to pay and the amount of their monthly contribution base before their employer not later than seven days after the date on which they began to work under their employment contract.

Each calendar year, the seafarer may change the type of contributions they wish their employer to pay by submitting a statement to their employer by the end of January of said calendar year.

Employers pay seafarers’ social security contributions by the twenty-fifth day of the month following the one for which they are due.

Seafarers are not responsible for calculating the final amount of their contribution base. In their case, the final amount of the contribution base is equal to that of the income in respect of which social security contributions were paid during the relevant calendar year.

Social security arrangements where seafarers engage in work in other capacities

Where the income of a seafarer derives from their work as a seafarer but also activities referred to in Article 4 of the Social Security Code, their social security contributions are determined on the basis of the sum total of their contribution bases. This sum total cannot exceed the fixed maximum monthly amount of the contribution base. The contributions are determined as follows:

1. income from activities in which the person engages in accordance with the order set in Article 4(1) and (10) [of the Social Security Code];

2. income from benefits paid pursuant to the Labour Code or other acts under which social security contributions are payable;

3. contribution base for activity as a seafarer;

4. contribution base for the person’s activities as a sole trader, or the owner of or partner in a trading company or unincorporated enterprise, as a person taxed according to the procedure set out in Article 26(7) of the Law on the Income Taxation of Natural Persons in respect of persons practicing a liberal profession and/or engaged in a skilled craft, registered farmers and tobacco producers;

5. income from work without a contract of employment.

Persons who engage in work without a contract of employment receive a monthly wage equal to or higher than the fixed minimum wage (from which operating costs have been deducted) and who do not pay social security contributions on other grounds for the relevant month are under an obligation to pay contributions in respect of the following risks: disability resulting from non-occupational disease, old age and death.

Irrespective of their wage, persons who engage in work without a contract of employment but do pay social security contributions on other grounds are under an obligation to pay contributions in respect of the following risks: disability resulting from non-occupational disease, old age and death.

Legal framework

The procedure for granting and paying cash benefits in the event of temporary incapacity is set out in Section I (Benefits in the event of temporary incapacity and reassignment) and Section IV (Granting cash benefits and allowances and calculating their amount) of Chapter Four (Benefits) of the Social Security Code and in the Regulation on cash benefits and allowances provided by the State social security system.

Persons entitled to cash benefits in the event of temporary incapacity

These are persons who engage in work and pay social security contributions to the Non-occupational Disease and Maternity Fund to cover against non-occupational disease and maternity and to the Occupational Accidents and Diseases Fund to cover against occupational accidents and diseases, both funds forming part of the State social security system.

Conditions for entitlement to cash benefits in the event of temporary incapacity

To be entitled to cash benefits for the duration of their leave owing to temporary incapacity, a person must satisfy the conditions below:

- The person is obliged to be covered against non-occupational disease and maternity as at the date on which temporary incapacity occurs, i.e. they must engage in work that serves as grounds for the payment of social security contributions and these contributions, be they already paid or payable, must be calculated on the basis of remuneration paid, scheduled for payment or yet to accrue.

- The person is obliged to have at least six months of social security coverage against non-occupational disease and maternity. This requirement does not apply to persons under the age of 18, nor is it of relevance to a person’s entitlement to cash benefits in the event of an occupational accident or disease. The six months above need not be a continuous period. They may cover work for more than one employer and need not come immediately before the person takes their sick leave.

- The sick leave must be authorised, i.e. a medical professional must first issue the person a dedicated medical certificate.

Employer obligation to pay remuneration for part of period during which a person suffers temporary incapacity

An employer is under an obligation to pay a person covered by social security 70 % of their gross average daily remuneration calculated with reference to the month during which the person’s temporary incapacity occurred or, in any case, at least 70 % of their agreed average daily remuneration for the first three working days of the period during which the person is not able to work.

Where the person does not have six months of social security coverage, they are not entitled to remuneration during the first three working days of the period during which they are not able to work.

The employer is not under an obligation to pay remuneration during the first three working days of the period above, where:

- the period during which the person suffers a temporary incapacity continues without interruption past the first three working days (regardless of whether the incapacity is ascertained in an medical certificate of ascertainment or follow-up certificates, or whether the certificates concern the same disease and the same cause of incapacity or not);

- cash benefits paid to self-employed persons for the duration of their temporary incapacity or their pregnancy and childbirth are paid by the State social security system.

Where a person has been granted a disability pension due to a disease, this person is under an obligation to reimburse the cash benefits for temporary incapacity received in respect of the disease, except where the medical certificate is issued in light of objective evidence showing that the person’s condition has exacerbated and in the case of interventions forming part of the treatment of a chronic disease.

Remuneration based on which benefits are calculated. Method for the calculation of benefits

The daily cash benefit for temporary incapacity resulting from a non-occupational disease or from an occupational accident or disease stands at 80 % or 90 %, respectively, of the gross average daily remuneration or the average daily contribution base in respect of which social security contributions have either been paid or are payable. For self-employed persons, the share is calculated with reference to the social security contributions paid to cover against non-occupational disease and maternity during the 18 calendar months before the incapacity occurred. The daily cash benefit for temporary incapacity resulting from non-occupational disease may not exceed the net average daily remuneration for the period with reference to which the benefit is calculated.

The average minimum wage in Bulgaria during the days falling within the 18 calendar months above is used where the person:

- has not paid social security contributions to cover against non-occupational disease and maternity;

- has availed themselves of unpaid leave that counts towards their work experience and their period covered by social security;

- has taken parental leave;

- has paid social security contributions in accordance with the law of another country pursuant to an international treaty to which the Republic of Bulgaria is a party.

Where the person received cash benefits from the State social security system for temporary incapacity, pregnancy and childbirth or adoption of a child under 5 years of age for a period taking place during the 18 calendar months above, the income based on which the cash benefits were calculated is used [for the purpose of calculating the daily cash benefit in this section].

Calculation of the net remuneration

The monthly net remuneration is calculated by subtracting the statutory amount of the mandatory social security contributions paid by the persons and the taxes regulated under the Law on the Income Taxation of Natural Persons from the monthly remuneration paid or scheduled for payment. The monthly net remuneration may not exceed the maximum contribution base, except where persons whose working time is determined as a whole for a period of over one month are concerned. Where the relevant remuneration has not accrued and the person does not have a fixed minimum contribution base, the minimum monthly contribution base or the minimum monthly wage in Bulgaria is used for the calculation until the net remuneration comes to accrue.

Calculation of the cash benefit where work proceeds in day-long shifts and where work is calculated as a whole and proceeds in shifts of one or more hours

Where work is calculated as a whole, the cash benefit for temporary incapacity is paid depending on the working days stated by the person and forming part of the period of temporary incapacity. Where work is calculated as a whole and proceeds in shifts of one or more hours, the cash benefit for temporary incapacity is paid depending on the working hours in the person’s schedule forming part of the period of temporary incapacity, the pregnancy and childbirth leave or the leave granted if a person who adopts a child under 5 years of age. The schedule above must be designed in line with the requirements set out in the Regulation on working time, breaks and leave.

Calculation of total cash benefits

The total amount of cash benefits is calculated by multiplying its amount per day/hour by the number of working days/hours forming part of the period of temporary incapacity for which the person is entitled to cash benefits.

Calculation of the cash benefits for temporary incapacity in cases where the person works under more than one contract of employment or has several grounds for social security coverage

The cash benefits of persons covered against non-occupational disease and maternity and/or occupational accidents and diseases under more than one contract of employment/having several grounds for social security coverage as at date on which the temporary incapacity occurs are paid individually under each contract of employment or in respect of each set of legal grounds.

Persons covered against non-occupational disease and maternity and/or occupational accidents and diseases under more than one contract or under different grounds for social security coverage for different employers are under an obligation to submit a medical certificate with each employer.

Deadline for payment of cash benefits

The payment of cash benefits for temporary incapacity resulting from a non-occupational disease, an occupational accident or disease commences on the first day of the circumstance arising and ends on recovery of the person’s working capacity or continues until they are found disabled.

In the event that the temporary incapacity occurs before the term of a fixed-term or service contract, military service contract or management and control contract concerning a trading company has ended, the cash benefits are paid for a period that does not exceed 30 calendar days after the term of the relevant contract has ended. Where the temporary incapacity results from an occupational accident or disease, the cash benefits are paid until the person recovers their working capacity or until they are found disabled.

The cash benefits for temporary incapacity resulting from an occupational accident or disease granted to persons working under one-day short-term contracts for seasonal agricultural labour are paid for the period during which the person is not able to work or, in any case, for not more than 90 calendar days.

Payment of cash benefits due to [a requirement to] quarantine or suspension

Cash benefits for temporary incapacity due to [a requirement to] quarantine or suspension following an instruction from the public health authorities are paid:

- while the person covered by social security is quarantining;

- while the person covered by social security is suspended, where it is not possible to reassign them to an appropriate position for the relevant period. The cash benefit is granted for not more than 90 calendar days per calendar year.

Payment of cash benefits for health resort treatment

Persons who have suffered incapacity and have been referred to a health resort by the competent health authorities are granted cash benefits for their entire stay there, including a travel [allowance for] up to three calendar days, in line with the rates set for non-occupational diseases, or occupational accidents and diseases, as the case may be.

Payment of cash benefits for care provided to ill family members

Cash benefits standing at the amount of benefits for temporary incapacity resulting from non-occupational disease and regulated by the conditions applicable to these are also paid [to a person covered by social security]:

- where they care for or accompany an ill family member over the age of 18 to an urgent medical examination, test or treatment in Bulgaria or abroad. The benefits may be received for up to 10 calendar days per calendar year;

- where they care for or accompany an ill child under the age of 18 to an urgent medical examination, test or treatment in Bulgaria or abroad. The benefits may be received for up to a total of 60 calendar days per calendar year (for all family members covered by social security). This period does not include the child raising period referred to in points 3 to 5;

- where they care for a child under the age of 18 quarantined due to having an infectious disease. The benefits may be received until the end of the quarantine period;

- where they care for an ill child under 3 years of age who has been hospitalised and is accompanied by the person covered by social security. The benefits may be received for the duration of the person’s stay in the medical establishment;

- babysitting a healthy child sent back from a day-care establishment for quarantine-related reasons. The benefits may be received for the duration of the quarantine period.

The family members of a person covered by social security are their blood relatives with whom they are related in the ascending line (mother, father, grandmother, grandfather, great-grandfather, great-grandfather) and in the descending line (children, grandchildren and great-grandchildren) and their spouse.

Limitation period for the payment of cash benefits

Cash benefits for temporary incapacity payable by the State social security system are considered time-barred after a limitation period of three years as from 1 January of the year following that for which they are granted has passed.

Cases in which cash benefits are not payable

Cash benefits for temporary incapacity are not payable to persons covered by social security who:

- purposefully harm their health to be granted leave or benefits;

- violate the [quarantine] restrictions imposed by the public health authorities: [benefits are not paid] only for the days during which the restrictions were violated;

- are no longer fit for work due to alcohol consumption or the use of strong drugs for no medical reason, or owing to behaviour under the influence of these;

- are no longer fit for work due to hooliganism and other anti-social behaviour duly ascertained according to the relevant procedure;

- are no longer fit for work due to their failure to comply with occupational safety rules, where said failure has been duly ascertained according to the relevant procedure.

If person is deemed unfit for work due to alcohol consumption or the use of strong drugs for no medical reason, or owing to behaviour under the influence of these, or due to hooliganism and other anti-social behaviour duly ascertained according to the relevant procedure, the period during which benefits are not paid may not exceed 15 calendar days. If a person is deemed unfit for work due to their failure to comply with occupational safety rules, where said failure has been duly ascertained according to the relevant procedure, this period may not exceed 3 calendar days.

Cash benefits for temporary incapacity and for pregnancy and childbirth are not paid to persons engaged in work serving as grounds for social security coverage against non-occupational disease and maternity during the periods stated in the medical certificates issued by the competent public health authorities.

Documents and data required for payment of the cash benefits for temporary incapacity

A person covered by social security is paid cash benefits for temporary incapacity on the basis of:

- a medical certificate that the person submits to their employer;

- the data from the medical certificates submitted according to the Regulation on the procedure for submitting data from medical certificates and decisions concerning their appeal. Data from the following registers is used: the register of persons covered by social security, the register of employers paying social security contributions and self-employed persons, the register of revenue accruing from social security contributions within the State social security system, the Employment Contract Register, the Pensions Register, the Occupational Accidents Register, the Occupational Disease Register, the Cash Benefits for Prevention and Rehabilitation Activities Register and the Cash Benefits and Allowances from the State Social Security System (DOO) Register;

- a form statement submitted by the person to their employer. In this statement, the person must declare any circumstances pertinent to the payment of cash benefits and data concerning the payment account at which they wish to receive these, which must be in their name;

- a certificate attesting to the person’s entitlement to cash benefits, which must be submitted to the National Social Security Institute by the employer (for persons whose contributions are paid by their employers) or the self-employed person;

- other specific documents and data, depending on the type of temporary incapacity, requested by the competent local office of the National Social Security Institute.

Procedure for submission of documents for the payment of cash benefits for temporary incapacity to the National Social Security Institute

Persons whose employer pays their social security contributions submit their medical certificates in hardcopy to their employer. The employer then enters these in a dedicated log, giving them a reference number and date of submission. Persons whose employer pays their social security contributions must require this additional data, which serves as proof that the documents have been submitted to the employer.

Certificates attesting to a person’s entitlement to cash benefits must be submitted to the National Social Security Institute by employers, their branches and units as well as by social security schemes not later than the tenth day of the month following that in which the person whose employer pays their social security contributions submits their medical certificate to said employer.

Where an employer delays the submission of, or fails to submit, a certificate attesting to a person’s entitlement to cash benefits to the National Social Security Institute, the employer is held liable in respect of administrative breaches.

Self-employed persons submit the certificates attesting to their entitlement to cash benefits to the National Social Security Institute not later than the tenth day of the month following that in which the medical certificate was issued, doing so either in person or via the social security scheme of which they are part. Partners in trading companies, owners of single-member limited liability companies and natural persons who are members of unincorporated enterprises do so via the companies paying the remuneration based on which their social security contributions are calculated.

Procedure for submission of documents and payment of cash benefits and allowances left outstanding in the event of death of a person covered by social security

The heirs to a person entitled to benefits or allowances may submit a form application, requesting that the amounts not received by the testator are paid to them. Heirs may submit applications in person or via an agent as well as electronically using a qualified electronic signature or using their personal identification code at the local office of the National Social Security Institute corresponding to their permanent or current address.

Any documents issued by municipalities that may be required in assessing a person’s entitlement to cash benefits and allowances (in the case at hand, an heir certificate) are requested ex officio [by the National Social Security Institute] where the applicant has not submitted these themselves. Within 14 days after they receive a request, municipalities must send the relevant documents.

The amount of the outstanding cash benefits and/or allowances is distributed among the heirs according to the procedure set out in the Inheritance Act.

Obligations of the persons [whose employers pay their social security contributions] and employers/self-employed persons to notify the National Social Security Institute of circumstances that may result in the discontinuation of cash benefits for temporary incapacity

Not later than 3 working days after a change in the circumstances pertinent to the payment of cash benefits, including change in the payment account, the persons whose employers pay their social security contributions must submit a statement to their employers, enclosing the relevant evidence.

Not later than 3 working days after they have received a statement attesting to a change in circumstances, employers, their branches and units and social security schemes must submit a certificates attesting to the person’s entitlement to cash benefits to the National Social Security Institute. These certificates must feature information about the change in the section reading ‘I hereby certify the following changes in circumstances’.

Self-employed persons submit a new certificate attesting to their entitlement to cash benefits to the National Social Security Institute not later than 3 days after the change in the circumstances pertinent to the payment of cash benefits, doing so via the companies paying the remuneration based on which their social security contributions are calculated. The companies paying the remuneration based on which the contributions of the partners in trading companies, owners of single-member private limited liability companies and natural persons who are members of unincorporated enterprises are calculated as well as social security schemes follow the same procedure.

Deadlines for the payment of cash benefits for temporary incapacity by the National Social Security Institute

Eligible persons are paid their cash benefits for temporary incapacity within 10 working days after the certificate attesting to their entitlement to cash benefits is submitted to the National Social Security Institute and after the data from the issued medical certificates is received by the National Social Security Institute.

The cash benefits to which entitlement is ascertained on the basis of statements are also paid within 10 working days after the documents/data are submitted to the relevant local office of the National Social Security Institute.

Cash benefits covering a period longer than one calendar month are paid within 10 working days after a certificate attesting to the person’s entitlement to cash benefits is submitted to the relevant local office of the National Social Security Institute and after the medical certificates for the first month of the period are received by the National Social Security Institute. For any other calendar months forming part of the period [except the final one], the payment is made within 5 working days after the month in respect of which the benefits are paid ends. For the final month, the payment is made within 5 working days from the end of the period for which the benefits are paid.

The amounts due are paid by the National Social Security Institute to the payment accounts specified by the persons.

Where the eligible person resides in an EU Member State or in a country with which the Republic of Bulgaria has concluded an agreement whereby cash benefits granted by the State social security system may be transferred [to the accounts of persons residing] abroad, the benefits may be transferred to the bank account stated by the person in the country of residence.

Refusal to grant cash benefits

Where a person is not entitled to cash benefits, the official tasked with managing the payment of cash benefits and allowances or any other official designated by the head of the relevant local office of the National Social Security Institute issues a refusal order.

Legal framework

The procedure for granting and paying maternity cash benefits is set out in Section II (Maternity cash benefits) and Section IV (Granting cash benefits and allowances and calculating their amount) of Chapter Four (Benefits) of the Social Security Code and in the Regulation on cash benefits and allowances provided by the State social security system.

Types of maternity cash benefits granted by the State social security system

Where the risk of maternity materialises, the State social security system grants the following benefits:

- cash benefits in the event of maternity and childbirth: payable for a period of up to 410 days;

- cash benefits standing at 50 % of the benefits in the event of pregnancy and childbirth: payable for a period of up to 410 days, where the person opts not to take her maternity leave;

- cash benefits following childbirth or the adoption of a child under 5 years of age: payable for a period of 15 days;

- cash benefits following childbirth but granted after the child reaches the age of 6 months: payable for the remainder of the period of up to 410 days;

- cash benefits for raising a child: payable until the child turns 2;

- cash benefits standing at 50 % of the benefits for raising a child: payable until the child turns 2, where the person opts not to take her maternity leave;

- cash benefits following the adoption of a child under 5 years of age: payable to an adoptive parent who has adopted a child without a partner for a period of up to 365 days after the child is formally adopted. This period may not extend past the child’s fifth birthday;

- cash benefits following the adoption of a child under 5 years of age granted at least 6 months after the child is formally adopted: payable to the adoptive father covered by social security, where he is married to the adoptive mother, for the remainder of the period whose maximum duration is 365 days. This period may not extend past the child’s fifth birthday;

- cash benefits standing at 50 % of the benefits following the adoption of a child under 5 years of age, where the person does not take the leave generally granted in cases of adoption;

- [cash benefits] for raising a child under 2 years of age and following the adoption of a child under 5 years of age where the mother/adoptive mother of the child comes to suffer from a severe illness or where the mother/adoptive mother and/or the father/adoptive father dies.

Persons entitled to cash benefits during pregnancy and childbirth, for raising a child under 2 years of age or following the adoption of a child under 5 years of age

The persons entitled to these are those covered against non-occupational disease and maternity by virtue of their contributions to the Non-Occupational Disease and Maternity Fund forming part of the State social security system.

Conditions entitling a person to cash benefits in the event of pregnancy and childbirth, raising a child under 2 years of age and the adoption of a child under 5 years of age

To be entitled to cash benefits in the event of pregnancy and childbirth, raising a child under 2 years of age and the adoption of a child under 5 years of age, a person must satisfy the following conditions:

- They must be covered against non-occupational disease and maternity as at the start of their leave.

- They need to have paid social security contributions against the risks of non-occupational disease and maternity for at least 12 months. The 12 months above may be an interrupted or a continuous period. They need not come directly before the person takes her maternity leave, nor is it necessarily for the person to have spent these with the same employer.

- The leave taken must be authorised.

Conditions entitling a person to cash benefits standing at 50 % of the benefits in the event of pregnancy and childbirth, where the person opts not to use her maternity leave

To be entitled to these cash benefits, a person must satisfy the following conditions:

- The person must be engaged in work as at the date from which they have applied to receive the cash benefits. The person must be covered against non-occupational disease and maternity as at the date from which they have applied to receive the cash benefits.

- As at the date from which the person has applied to receive the cash benefits, they are obliged to have spent at least 12 months paying social security contributions against non-occupational disease and maternity. The 12 months above may be an interrupted or a continuous period. They need not come directly before the date from which the person has applied to receive the cash benefits, nor is it necessary for the person to have spent these with the same employer.

- The 135 calendar days of leave generally authorised based on medical certificates issued by the health authorities, regardless of whether leave has been taken and benefits have been paid based on these, need to have expired.

Conditions entitling a person to cash benefits standing at 50 % of the benefits following the adoption of a child under 5 years of age, where the person does not take the leave granted in cases of adoption.

To be entitled to these cash benefits, a person must satisfy the following conditions:

- The person must be engaged in work as at the date from which they have applied to receive the cash benefits.

- The person must be covered against non-occupational disease and maternity as at the date from which they have applied to receive cash benefits. As at the date from which the person has applied to receive cash benefits, they are obliged to have spent at least 12 months paying social security contributions against non-occupational disease and maternity. The 12 months above may be an interrupted or a continuous period. They need not come directly before the date from which the person has applied to receive the cash benefits, nor is it necessary for the person to have spent these with the same employer.

- The date from which the person has applied to receive the cash benefits must come after the ninetieth day following the child’s adoption, regardless of whether leave has been taken and benefits paid for the adoption of a child under 5 years of age.

Conditions entitling a person to cash benefits standing at 50 % of the benefits for raising a child under 2 years of age, where the person does not take the leave granted for raising the child

To be entitled to these cash benefits, a person must satisfy the following conditions:

- The person must be engaged in work as at the date from which they have applied to receive the cash benefits. The person must be covered against non-occupational disease and maternity as at the date from which they have applied to receive the cash benefits.

- As at the date from which the person has applied to receive the cash benefits, they are obliged to have spent at least 12 months paying social security contributions against non-occupational disease and maternity. The 12 months above may be an interrupted or a continuous period. They need not come directly before the date from which the person has applied to receive the cash benefits, nor is it necessary for the person to have spent these with the same employer.

- The date from which the person has applied to receive the cash benefits must not come before the term during which the benefits for pregnancy and childbirth or adoption of a child under 5 years of age expires, regardless of whether leave has been taken and benefits paid.

Period during which cash benefits in the event of pregnancy and childbirth may be paid

A mother covered against non-occupational disease and maternity is entitled to cash benefits in the event of pregnancy and childbirth for a period of up to 410 days, 45 of these coming before childbirth.

A person, be they a man or a woman, covered against non-occupational disease and maternity with whom a child lives is entitled to cash benefits [for a period] calculated by subtracting the child’s age on the day they are placed with the adult from the maximum period after the child’s birth that may be covered by childbirth benefits (365 calendar days).

A father covered against non-occupational disease and maternity is entitled to cash benefits following the birth of their child for up to 15 days as from the date on which the child is discharged from the maternity ward or hospital. An adoptive parent of a child under 5 years of age covered against non-occupational disease and maternity is entitled to cash benefits for up to 15 days as from the child’s adoption.

During their leave, a person covered against non-occupational disease and maternity is entitled to cash benefits following the birth of their child granted after the child turns 6 months for the remainder of the 410 days above.

Self-employed persons not engaged in work during the stipulated period are also entitled to benefits under the conditions above.

Entitlement to cash benefits in the event of pregnancy and childbirth, or the adoption of a child under 5 years of age, where a person’s social security coverage is terminated

Where a person’s coverage against non-occupational disease and maternity is terminated while they are receiving cash benefits for pregnancy and childbirth or the adoption of a child under 5 years of age, the person continues to be paid cash benefits until the period for payment of the benefits for pregnancy and childbirth or that for payment of the benefits for child adoption respectively ends.

The cash benefits standing at 50 % of the benefits for pregnancy and childbirth or for the adoption of a child under 5 years of age, in cases where the person does not take the relevant leave, are paid until the date on which the person’s contract of employment or their social security coverage is terminated.

Period during which cash benefits for the adoption of a child under 5 years of age are paid

A person covered against non-occupational disease and maternity, be they a man or a woman, who adopts a child is entitled to cash benefits for a period of up to 365 calendar days as from the child’s formal adoption. This period may not extend past the child’s fifth birthday.

Persons entitled to cash benefits following childbirth where the mother/adoptive mother of the child comes to suffer from a severe illness or where the mother/adoptive mother and/or the father/adoptive father dies

Where the mother of a child under 2 years of age or the adoptive mother of a child under 5 years of age comes to suffer from a severe disease impeding her from caring for her child or where the mother/adoptive mother dies, the father/adoptive father of the child is entitled to receive the childbirth/child adoption benefits or the benefits for raising a child under 2 years of age for the duration of parental leave. With his permission, one of his or the mother/adoptive mother’s parents may receive the benefits, where this person works under a contract of employment.

Where the mother of a child under 2 years of age or the adoptive mother of a child under 5 years of age comes to suffer from a severe disease impeding her from caring for her child or where the father/adoptive father dies, the mother/adoptive mother’s parents or those of the father/adoptive father are entitled to receive the childbirth/child adoption benefits or the benefits for raising a child under 2 years of age for the duration of parental leave.

Where the mother of a child under 2 years of age comes to suffer from a severe disease impeding her from caring for her child or dies and where the father is unknown, the mother’s parents are entitled to receive the childbirth benefits or the benefits for raising a child under 2 years of age for the duration of parental leave.

Where the adoptive single parent of a child under 5 years of age comes to suffer from a severe disease impeding them from caring for their child or dies, one of their parents is entitled to receive the child adoption benefits or the benefits for raising a child under 2 years of age for the duration of parental leave, where they work under a contract of employment.

Where both parents of a child under 2 years of age or both adoptive parents of a child under 5 years of age die, the child’s legal guardian is entitled to receive the childbirth/child adoption benefits or the benefits for raising a child under 2 years of age for the duration of the parental leave. With their permission, one of the child’s grandparents may receive the benefits.

Legal framework

The procedure for granting and paying cash benefits in the event of reassignment is set out in Section I ("Benefits in the event of temporary incapacity and reassignment") and Section IV ("Granting cash benefits and allowances and calculating their amount") of Chapter Four ("Benefits") of the Social Security Code and in the Regulation on cash benefits and allowances provided by the State social security system.

Types of cash benefits in the event of reassignment

Cash benefits in the event of reassignment may be one of three types:

- [in respect of] reassignment due to temporary incapacity resulting from non-occupational disease, or an occupational accident or disease;

- [in respect of] reassignment owing to pregnancy or breastfeeding considerations;

- [in respect of] reassignment owing to the person being in the later stages of an in vitro treatment.

Reassignment due to non-occupational disease, or an occupational accident or disease

A worker or employee who is not able to perform their professional duties owing to a disease or an occupational accident but is able to perform other suitable duties, or the same duties but under less strict conditions, without there being a risk to their health, is reassigned or continues to perform their present duties under less strict conditions, in accordance with the instructions of the health authorities.These instructions set out the type of duties that may be performed, the working conditions and the duration of reassignment.

The instructions of the health authorities stipulate whether a worker or employee must be reassigned to suitable duties or whether they are to continue to perform their current duties under less strict conditions, laying down the nature of the professional duties, the working conditions and the duration of the reassignment. An instruction for reassignment issued by the health authorities is binding on the worker and the employer, with the former being obliged not to perform the duties they are abandoning and the latter not to allow them to perform said duties. Within seven days of receiving an instruction, the employer must reassign the worker or employee to suitable duties.

Where the employer fails to comply with the instruction of the health authorities, they must offer the worker or employee benefits.

A person’s attending physician may require their reassignment for not more than one month per a calendar year by issuing a medical certificate. Medical advisory committees may require reassignment for a total of not more than two years (and not more than six months at a time) by issuing a medical certificate.

Reassignment owing to pregnancy or breastfeeding considerations or because the person is in the later stages of an in vitro treatment

Where a pregnant or breastfeeding woman, or a worker or employee in the later stages of an in vitro treatment, performs duties not suited to her situation, the employer may receive instructions from the health authorities and, acting on these, take the necessary measures to adapt the working conditions at her workplace and/or her working hours for a specified period. Where these cannot be adapted, the employer must reassign the person to suitable duties.

The instruction of the health authorities is binding on a pregnant or breastfeeding woman, or a worker or employee in the later stages of an in vitro treatment, as well as on the employer. Pending the implementation of the instruction, the worker or employee is no longer under an obligation to perform the duties not suited to her situation and the employer pays benefits equivalent to the gross monthly remuneration for the month preceding the date on which the instruction was issued.

Reassignment proceeds following an instruction from the health authorities and is certified by a medical certificate. Medical certificates in respect of reassignment may only be issued by a person’s general practitioner or the relevant MD holding specialisation (OB-GYN).

Conditions for entitlement to cash benefits in the event of reassignment

To be entitled to cash benefits in the event of reassignment, a person must:

- be covered against non-occupational disease and maternity as at the start of their reassignment;

- have at least six months of social security coverage against non-occupational disease and maternity;

- receive a lower remuneration [than their original one] at the position to which they are reassigned according to the instruction;

- be issued a medical certificate in respect of reassignment;

- be sure to have filled out a statement containing data on the payment account in their name as at the date on which they submit their first medical certificate, so that they may receive their benefits from the State social security system.

Where a person is reassigned owing to an occupational accident or disease, they are not required to have at least six months of social security coverage against non-occupational disease and maternity.

Period for which cash benefits in the event of reassignment owing to temporary incapacity resulting from non-occupational disease, or an occupational accident or disease, are paid

The cash benefits are paid for the duration of a reassignment and, in any case, for not more than six months.

Period during which the cash benefits in the event of reassignment owing to pregnancy or breastfeeding considerations or because the person is in the later stages of an in vitro treatment are paid

Cash benefits in the event of reassignment owing to pregnancy are paid as from the day on which the person is reassigned until she takes her maternity leave. Where she is reassigned owing to breastfeeding considerations, the benefits are paid for the entire duration of reassignment and while the mother breastfeeds.

Cash benefits in the event of reassignment because the person is in the later stages of an in vitro treatment are paid for not more than 20 calendar days.

Limitation period for payment of the three types of cash benefits in the event of reassignment

Cash benefits in the event of reassignment payable by the State social security system are considered time-barred after a limitation period of three years, as from 1 January of the year following that for which they are granted expires.

Documents and information required in procedures for granting and paying cash benefits in the event of reassignment

The cash benefits in the event of reassignment of a person covered by social security are calculated and paid on the basis of:

- a medical certificate submitted by the person to their employer;

- the data from the medical certificates submitted according to the Regulation on the procedure for submitting data from medical certificates and decisions concerning their appeal. Data from the following registers is used: the register of employers paying social security contributions and self-employed persons, the register of revenue accruing from social security contributions within the State social security system, the Employment Contract Register, the Pensions Register, the Occupational Accidents Register, the Occupational Disease Register, the Cash Benefits for Prevention and Rehabilitation Activities Register and the Cash Benefits and Allowances from the State Social Security System (DOO) Register;

- a form statement submitted by the person to their employer. In this statement, the person must declare any circumstances pertinent to the payment of cash benefits and the payment account at which they wish to receive these;

- a certificate attesting to the person’s entitlement to cash benefits;

- other documents, depending on the specific case, requested by the competent local office of the National Social Security Institute.

Procedure for the submission of documents for the payment of cash benefits in the event of reassignment to the National Social Security Institute

Persons whose employer pays their social security contributions submit their medical certificates in hardcopy to their employer., which then enters these in a dedicated log, giving them a reference number and a date of submission. Persons whose employer pays their social security contributions must require this additional data, which serves as proof that the documents have been submitted to the employer. These documents must be submitted to the National Social Security Institute by employers, their branches and units, as well as by social security schemes not later than the tenth day of the month following that in which the person whose employer pays their social security contributions submits their medical certificate to said employer.

Where an employer delays the submission of, or fails to submit, the documents to the National Social Security Institute, it incurs administrative and criminal liability.

CASH ALLOWANCES PROVIDED BY THE STATE SOCIAL SECURITY SYSTEM

Legal framework

Entitlement to cash allowances is regulated on Chapter One (General Provisions) of the Social Security Code and the procedure for granting and paying cash allowances — in the Regulation on cash benefits and allowances provided by the State social security system.

Types of allowances provided by the State social security system according to the Social Security Code

The Social Security Code regulates the payment of two types of allowances provided by the State social security system, namely: a one-off allowance granted in the event that a person covered by social security dies and a cash allowance for disability due to non-occupational disease, where the person covered by social security has not spent a sufficient period paying social security contributions and is thus ineligible for a disability pension for non-occupational disease.

ONE-OFF ALLOWANCE GRANTED IN THE EVENT THAT A PERSON COVERED BY SOCIAL SECURITY DIES

Persons entitled to a one-off allowance granted in the event that a person covered by social security dies

According to the Social Security Code, the following persons related to the person covered by social security are entitled to a one-off allowance in the event of their death:

- their spouse;

- their offspring;

- their parents.

The offspring of the deceased are entitled to the allowance above regardless of whether they are students or not and whether they are of age or not. The parents of the deceased are entitled to the allowance regardless of whether the deceased used to supported by them.

The eligible persons (the spouse, offspring and parents of the deceased) are not required to be covered against non-occupational disease and maternity, disability due to non-occupational disease, old age and death, or occupational accidents or diseases.

Condition for entitlement to the allowance

For [the persons above] to be entitled to the allowance, the deceased needs to have been covered by social security pursuant to the Social Security Code as at the time of their death. Whether the person was covered against non-occupational disease and maternity, disability due to non-occupational disease, old age, death, occupational accidents and diseases and unemployment, or only against disability due to non-occupational disease, old age and death, is of no consequence.

Amount of the one-off allowance granted in the event that a person covered by social security dies

The amount of the one-off allowance is fixed in the State Social Security System Budget Act for each calendar year.

Documents required for granting and paying the one-off allowance in the event that a person covered by social security dies

The allowance is paid after the following documents are submitted:

- a form application in line with the model annexed to the Regulation on cash benefits and allowances provided by the State social security system;

- an identity document (to verify the applicant’s identity).

Procedure for submission of the necessary documents with the local office of the National Social Security Institute

[Eligible] persons may submit applications in person, via an agent and, as from 1 October 2019, electronically using a qualified electronic signature or using their personal identification code at the local office of the National Social Security Institute corresponding to their permanent or current address.

The local office that accepts the documents for processing forwards these ex officio to the local office [handling the accounts] of the employer/self-employed person, which is also the one competent to assess eligibility and pay the allowance.

Payment of the allowance. Deadline for payment of the allowance

Within 10 days of the documents being submitted with a local office of the National Social Security Institute, each eligible person is transferred their share of the cash allowance granted in the event that a person covered by social security dies to the personal bank account indicated [in their application form]. Where the offspring of the deceased are under the age of 14 or between 14 and 18, their share of the allowance is paid to their legal representative.

Where a person is found ineligible for the allowance granted in the event that their relative covered by social security dies, the competent official with the local office of the National Social Security Institute issues a decision refusing to grant the allowance.

Where evidence that may result in the issuance of a decision refusing to grant the allowance or in the termination of the allowance is presented, the official in charge of the payment of benefits and allowances or another official designated by the head of the relevant local office of the National Social Security Institute issues a decision terminating the procedure for payment of the allowance.

The decision refusing or terminating the procedure is served on the person against their signature and in person either by registered mail via a licensed postal service to an address specified by them, or electronically according to the procedure set out in the Electronic Government Act.
The decision refusing or terminating the procedure may be appealed before the head of the relevant local office of the National Social Security Institute not later than 14 days after its receipt.

Obligation of [eligible] persons to notify the local office of the National Social Security Institute of any circumstances that call for terminating payment of the cash allowance

[Entitled] persons are under an obligation to notify any changes in the circumstances pertinent to payment of the cash allowance to the relevant local office of the National Social Security Institute not later than 3 working days after said changes materialise.

Limitation period with respect to the cash allowance

Eligible persons may claim the one-off allowance granted in the event that a person covered by social security dies within a period of 3 years, which runs as from 1 January of the year following that in which the person covered by social security died.

CASH ALLOWANCE FOR DISABILITY DUE TO NON-OCCUPATIONAL DISEASE, WHERE THE PERSON COVERED BY SOCIAL SECURITY HAS NOT SPENT A SUFFICIENT PERIOD PAYING SOCIAL SECURITY CONTRIBUTIONS AND IS THUS INELIGIBLE FOR A DISABILITY PENSION FOR NON-OCCUPATIONAL DISEASE

Persons entitled to a cash allowance for disability due to non-occupational disease

The following persons are entitled to a cash allowance for disability due to non-occupational disease (where they have not spent a sufficient period paying social security contributions and are thus ineligible for a disability pension for non-occupational disease):

- persons [whose social security contributions are paid by their employer] covered against non-occupational disease, maternity and disability resulting from non-occupational disease, old age and death, occupational accidents and diseases and unemployment (including persons covered against the risks above, barring unemployment);

- self-employed persons covered against non-occupational disease and maternity, disability resulting from non-occupational disease, old age and death.

Conditions for payment of the allowance

The following conditions must be satisfied for the allowance above to paid:

- The local office of the National Social Security Institute needs to have refused to grant the person a disability pension for non-occupational disease, citing insufficient period spent paying social security contributions.

- The person needs to have been covered against non-occupational disease and maternity as at the date when they became disabled.

The date cited in the decision of the Local Expert Medical Commission is the date on which the person becomes entitled to the allowance.

Amount and method of calculation of the allowance

The amount of the cash allowance is equivalent to that of cash benefits for temporary incapacity resulting from a non-occupational disease granted for a period of 60 days according to the Social Security Code.

The method of calculation is the same as that for cash benefits for temporary incapacity set out in the Social Security Code and in the Regulation on cash benefits and allowances provided by the State social security system and takes into account the 18 calendar months preceding the month in which the person became disabled.

The allowance may only be granted once following the date on which the person became disabled.

Documents required for a person to be granted and paid the allowance

To be paid the allowance above, the person must submit:

- a form application in line with the model annexed to the Regulation on cash benefits and allowances provided by the State social security system;

- an identity document (to verify the applicant’s identity).

Procedure for submission of the necessary documents with the local office of the National Social Security Institute

[Eligible] persons may submit applications in person, via an agent and electronically using a qualified electronic signature or their personal identification code at the local office of the National Social Security Institute corresponding to their permanent or current address.

A person wishing to claim the allowance must submit the necessary documents in hardcopy either in person or via an agent at the local office of the National Social Security Institute corresponding to their permanent or current address.

Where the eligible person opts to submit the documents in person, they must bring their identity document with them so that their identity may be verified.

Payment of the allowance. Deadline for payment of the allowance

Not later than 10 days after the form application is submitted with the local office of the National Social Security Institute, the allowance is transferred to the personal bank account indicated by the person.

Where the person is found ineligible for the allowance, the competent official with the local office of the National Social Security Institute issues a decision refusing to grant said allowance. The decision may be appealed before the head of the relevant local office of the National Social Security Institute not later than 14 days after its receipt.

Where evidence that may result in the issuance of a decision refusing to grant the allowance or in the termination of the allowance is presented, the official in charge of the payment of benefits and allowances or another official designated by the head of the relevant local office of the National Social Security Institute issues a decision terminating the procedure for payment of the allowance.

The decision refusing or terminating the procedure is served on the person against their signature and in person either by registered mail via a licensed postal service to an address specified by them, or electronically according to the procedure set out in the Electronic Government Act.

The decision refusing or terminating the procedure may be appealed before the head of the relevant local office of the National Social Security Institute not later than 14 days after its receipt.

Obligation of [eligible] persons to notify the local office of the National Social Security Institute of any circumstances that call for terminating payment of the cash allowance

[Entitled] persons are under an obligation to notify any changes in the circumstances pertinent to the payment of the cash allowance to the relevant local office of the National Social Security Institute not later than 3 working days after said changes materialise.

Limitation period with respect to the cash allowance

An eligible person covered by social security may apply to claim the cash allowance for disability due to non-occupational disease, where they have not spent a sufficient period paying social security contributions and are thus ineligible for a disability pension due to non-occupational disease, within a period of 3 years, which runs as from 1 January of the year following that for which the allowance is made available.

CASH ALLOWANCE FOR PREVENTION AND REHABILITATION ACTIVITIES

Legal framework

Cash allowances for prevention and rehabilitation activities are spent according to the terms and procedure set out in Regulation No 1 of 13 February 2007 on the use and payment of cash allowances for prevention and rehabilitation activities.

The National Social Security Institute finances and monitors the prevention and rehabilitation activities targeting the following groups of individuals:

1. persons covered against non-occupational disease, maternity and/or occupational accidents or diseases;

2. persons who receive a personal disability pension, where these have not reached the age referred to in Article 68(1) of the Social Security Code and where the disability period cited in the decision of the Local Expert Medical Commission or, respectively, the National Expert Medical Commission has not expired.

The persons referred to in point 1 above become entitled to a cash allowance for prevention and rehabilitation activities if their social security contributions have been paid or are payable for a period of six consecutive calendar months before the month in which the prevention and rehabilitation activities [are set to] take place. The six calendar months above include:

1. the paid and unpaid leave granted for raising a child;

2. the paid and unpaid leave owing to temporary incapacity or pregnancy and childbirth, and leave granted to persons who adopt a child under 5 years of age;

3. the unpaid leave with a duration of up to 30 working days per calendar year;

4. the period during which those self-employed persons who opted to be covered against non-occupational disease and maternity received cash benefits for temporary incapacity, pregnancy, childbirth and raising a child under 2 years of age and adoption of a child under 5 years of age, and the periods of temporary incapacity, pregnancy, childbirth and raising a child under 2 years of age and adoption of a child under 5 years of age in which they were not entitled to benefits.

Persons with disabilities resulting from occupational accidents or diseases are exempt from the requirement to have paid social security contributions for a period of six consecutive months or for their contributions to be payable.

Persons covered exclusively against occupational accidents and diseases are entitled to cash benefits for prevention and rehabilitation activities only where they have suffered an occupational accident or disease.

The cash allowance granted to eligible persons comprises the following elements:

1. an amount sufficient to cover a total of four basic diagnostic procedures and treatments a day (including examinations and tests) according to the fee rates approved by the Advisory Board of the National Social Security Institute;

2. an overnight stay allowance standing at BGN 18.00 (eighteen) per night, where the overnight stay fee is not higher than the amount cited;

3. an allowance meant to cover part of the cost of meals. This allowance stands at BGN 7.00 (seven) per food allowance day. The National Social Security Institute pays a total of BGN 7.00 (seven) in the form of this allowance on the days a person checks in and out of the relevant establishment.

Eligible persons may claim a cash allowance for prevention and rehabilitation activities once a calendar year for a stay of [not more than] 10 days.

The persons are responsible for booking their stay with prevention and rehabilitation service providers.

To be issued a certificate of entitlement to a cash allowance for prevention and rehabilitation activities, a person must submit:

1. a medical referral:

A person may be entitled to a cash allowance for prevention and rehabilitation activities, where their attending physician deems these activities necessary in view of a diagnosed condition, which must be indicated in a medical referral.

The attending physician issues the referral in two copies, detailing the condition which necessitates the prevention and rehabilitation activities, listing any concomitant diseases, stating the medical reasons serving as grounds for rehabilitation and appending a list of the supporting medical documents enclosed.

They must issue the referral not earlier than 30 days before the person is set to check in at the prevention and rehabilitation service provider;

2. an identity document (to verify the person’s identity);

3. a standard document certifying the risks against which the person is covered;

4. supporting medical documents certifying the person’s past and current health status — discharge summaries, tests results, X-ray scans and other scans, electrocardiogram readings and other documents relevant to the case.

Eligible persons must submit all medical documents attesting to the disease cited as necessitating secondary prevention and rehabilitation activities in the medical referral;

5. (a scanned copy of) an effective decision of the Local Expert Medical Commission or, respectively, the National Expert Medical Commission: for persons whose working capacity has been reduced permanently by 50 % or more;

6. (a scanned copy of) an effective decision ascertaining an occupational disease: for persons suffering an occupational disease.

Eligible persons must submit the documents above to the local office of the National Social Security Institute corresponding to their permanent or current address not later than 10 days before they are scheduled to check in at their prevention and rehabilitation service provider.

On receiving their certificate for prevention and rehabilitation activities, persons covered against non-occupational disease, maternity and/or occupational accidents and diseases must fill out a standard statement approved by the Managing Officer of the National Social Security Institute. In this statement, they must declare that they waive their rights under their certificate in the event that their employment contract or social security coverage is terminated as at the date on which they are scheduled to check in at the prevention and rehabilitation service provider. The statement form is supplied by an official of the relevant local office.

The certificate is not issued to persons who have contraindications with respect to the prevention and rehabilitation activities.

Documents required on check-in at a prevention and rehabilitation service provider:

1. an identity document;

2. a certificate from the local office of the National Social Security Institute;

3. a medical referral issued by the person’s attending physician;

4. supporting medical documents certifying the person’s past and current health status: discharge summaries, tests results, X-ray scans and other scans, electrocardiogram readings and other documents relevant to the case;

5. (a scanned copy of) a decision of the Local Expert Medical Commission or, respectively, the National Expert Medical Commission: for persons whose working capacity has been reduced permanently by 50 % or more;

6. (a scanned copy of) a decision ascertaining an occupational disease: for persons suffering an occupational disease.

WORKERS AND EMPLOYEES’ GUARANTEED RECEIVABLES IN THE EVENT OF INSOLVENT EMPLOYERS

Legal framework

The procedure for granting and paying guaranteed receivables is regulated in the Law on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers and in the Regulation on the procedure and method of notifying workers and employees and paying their guaranteed receivables in the event of their employer becoming insolvent.

Persons responsible for paying contributions pursuant to the Law on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers

All natural and legal persons satisfying the cumulative conditions below are under an obligation to pay contributions to the Workers and Employees’ Guaranteed Receivables Fund:

- They engage other persons under contracts of employment, i.e. they serve as an employer.

- Insolvency proceedings may be instituted against them according to the procedure set out in the Commerce Act and the procedures in dedicated acts.

Amount of contributions and deadlines for payment

Pursuant to the Law [on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers], all employers are under an obligation to pay the contributions above, which are calculated based on their staff’s gross monthly remuneration, be that paid, scheduled for payment or yet to accrue, insofar as this amount does not exceed the maximum monthly contribution base fixed in the State Social Security System Budget Act for the relevant calendar year.

Contributions to the Fund are paid together with social security contributions. The former are paid by the employer in full and their rate is fixed for each calendar year. It may not exceed 0.5 % of [a worker or employee’s] gross remuneration and is not contingent on the minimum monthly contribution base for the relevant activity and occupation group.

General vie of the guaranteed receivable

Workers and employees’ guaranteed receivables comprise the following amounts which have accrued but have not been paid:

- remuneration payable by the employer under employment contracts and collective bargaining agreements. For the purposes of the Law [on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers], this means gross remuneration, which comprises the staff member’s salary and additional forms of remuneration payable under their employment contract or a collective bargaining agreement. Remuneration does not mean amounts made available to workers and employees either regularly or as one-off payments for the purchase of workwear, uniforms and official clothing and coming from the employer’s social cost budget or similar strands;

- cash benefits payable by the employer under a dedicated legal instrument.

Eligible persons

Workers and employees who work or used to work under an employment contract for the employer are also entitled to guaranteed receivables, regardless of the term of their contract or their working hours.

In order for them to claim their guaranteed receivables, their employer needs to have operated for at least 12 months before it is found insolvent or, respectively, overindebted in the court order to institute insolvency proceedings.

Occurrence of the right to a guaranteed claim

Workers and employees become entitled to guaranteed receivables as from the date on which an entry in the Commercial Register is made in respect of a court order to:

- institute insolvency proceedings;

- institute insolvency proceedings, accompanied by a decision declaring the employer insolvent;

- institute insolvency proceedings and the employer winding up its operations and being declared insolvent in addition to the proceedings being terminated [immediately] owing to the employer lacking sufficient assets to cover the related costs.

Ineligible persons under the Law [on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers]

Guaranteed receivables are not paid to persons who have one of the following capacities when the entity is declared insolvent or overindebted:

- partners in the trading company;

- members of the management and control authorities of the trading company;

- spouses or blood relatives of the [sole] trader.

Procedure for notifying workers and employees of the fact that insolvency proceedings have been instituted against their employer

Not later than 14 days after the court order above has been entered in the Commercial Register, the employer must inform its workers and employees of its date of registration and the procedure for receiving guaranteed receiving.

To meet its obligation to notify workers and employees, the employer follows the procedure set out below:

- To notify workers and employees whose contracts of employment have not been terminated as at the date of registration of the order, it sends written notifications to their representatives and places a notification sign at an appropriate place on its premises.

- To notify workers and employees whose contracts of employment were terminated during the month in which the order referred to in Article 6 of the Law [on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers] was entered in the Commercial Register or during the previous 36 calendar months, it sends an individual notification to each worker or employee by registered mail.

- The following applies with respect to workers and employees working under an contract of employment for a Bulgarian company which is active in the Republic of Bulgaria and is a subsidiary of a parent company active in another EU Member State or another EEA country, where the parent company is found insolvent according to the national law of its country of establishment and the insolvency extends to the subsidiary active in the Republic of Bulgaria: the Bulgarian subsidiary comes under an obligation to notify its workers and employees on the date on which it is informed that insolvency proceedings have been instituted according to the national law of the [parent company’s] county of establishment.

Procedure for verifying the entitlement of workers and employees to guaranteed receivables

Not later than 21 days after the order is entered in the Commercial Register, the employer draws up a statement of the total amount of remuneration and/or cash benefits accrued but not yet paid in respect of each eligible person. The statement is done in three copies. The eligible worker or employee’s copy is either handed to them in person or is sent to them by registered mail via a licensed postal service.

Not later than one month after the order to institute insolvency proceedings is entered in the Commercial Register, the control structures of the competent local office of the National Social Security Institute examine the [financial] situation of the employer and ascertain whether the conditions entitling workers and employees to guaranteed receivables are in place. The results of the examination above are documented in a statement of findings.

In the course of the examination itself and during the period when it is conducted, workers and employees may submit objections, disputing the data in the statement drawn up by the employer. For its part, the employer must inform the control structures of the objections submitted, offer an opinion on their merits and draw up a new statement or, alternatively, refuse to do so.

Where the control structures identify irregularities in the statements or discrepancies in the data [in these] and where the persons above have submitted objections but the employer has refused to draw up a new statement, the control structures give mandatory instructions and set a time limit for eliminating the irregularities and/or discrepancies.

Documents submitted by persons applying to be granted guaranteed receivables

Guaranteed receivables are granted following the submission of a form application by a worker or employee to the local office of the National Social Security Institute corresponding to the territory in which their employer has its seat. The form application must be submitted not later than three months after the order to initiate insolvency proceedings is entered in the Commercial Register or after the date on which the workers and employees of the Bulgarian employer are informed that insolvency proceedings have been instituted [against the parent company of their employer] according to the national law of another country. The time limit above is binding and failure to observe it constitutes one of the grounds for refusing to pay guaranteed receivables.

The form application may be submitted in person, via an agent or by registered mail using a licensed postal service. It must be accompanied by:

1. an identity document (to verify the person’s identity);

2. a form statement drawn up by the employer and citing the amount of remuneration and cash benefits accrued but not yet paid;

3. a decision of the Local Expert Medical Commission attesting to the person’s working capacity being reduced by 50 % or more, if any: the original (for verification purposes) and a copy;

4. a power of attorney: where documents are submitted by an agent.

Amount of guaranteed receivables

According to the Law [on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers], eligible persons fall into two main groups for the purpose of calculating the amount of guaranteed receivables:

1. workers and employees, regardless of whether they are currently or were formerly employed under a contract of employment, who have remuneration and cash benefits that have accrued but have not been paid by the employer, where these are due pursuant to a legal instrument or a collective bargaining agreement. The guaranteed receivables for this group are in the amount of the relevant person’s six most recent monthly remunerations and cash benefit instalments which have accrued but have not yet been paid in the 36 months leading up to the month of registration of the order. Nevertheless, the monthly amount of guaranteed receivables may not exceed the relevant statutory maximum;

2. workers and employees whose contracts of employment were terminated in the 36 months leading up to the date of registration of the order referred to in Article 6 [of the Law on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers] and whose receivables are cash benefits that have accrued but have not been paid by the employer, where these are due pursuant to a legal instrument or a collective bargaining agreement. The guaranteed receivables for this group are in the amount of the relevant person’s unpaid cash benefits. Nevertheless, they may not exceed four times the minimum monthly wage in Bulgaria as at the date on which the person’s contract of employment was terminated.

Procedure and deadlines for granting and paying guaranteed receivables

Not later than 14 days after it receives a form application, the relevant local office of the National Social Security Institute prepares a draft decision either granting or refusing to grant guaranteed receivables. Within the same deadline, the decision is sent to the Director of the [Workers and Employees’ Guaranteed Receivables] Fund. The Director then issues a decision either granting or refusing to grant guaranteed receivables not later than one month after the form declaration is submitted and forwards this to the local office of the National Social Security Institute, which is responsible for presenting it to the applicant.

By a dedicated decision, the Director of the Fund may terminate the procedure for granting guaranteed receivables, where evidence which may lead to a refusal exists or where evidence that would allow for ascertaining entitlement to the receivables and their amount cannot be obtained.

The applicant may appeal any decision issued according to the procedure set out in the Administrative Procedure Code by lodging an appeal with the administrative court in whose jurisdiction the relevant local office of the National Social Security Institute falls not later than 14 days after receiving the decision.

Payment of guaranteed receivables not received by a deceased person

Where a worker or employee applied to claim guaranteed receivables by submitting a form application but died before being paid the receivables, their heirs are entitled to receive these as [part of] the estate of the deceased. To do so, they should submit an application to the competent local office of the National Social Security Institute, enclosing an heir certificate. The guaranteed receivables are then paid to a person authorised by all heirs or divided among them according to the procedure set out in the Inheritance Act.

The procedure stipulates that the guaranteed receivables are paid not later than one month after the authorised heir or each of the heirs submits an application.

Where a worker or employee did not exercise their right to claim guaranteed receivables during their lifetime and did not submit a form application to be granted these, an administrative procedure cannot be launched and [this part of] the estate of the deceased cannot be formed. Thus, their heirs are not entitled to claim guaranteed receivables.

Employer liability in the event that the employer fails to fulfil its obligations under the Law on Workers and Employees’ Guaranteed Receivables in the Event of Insolvent Employers

An employer or an official that fails to fulfil its/their obligations under the Law above and its implementing acts incurs administrative and criminal liability. The control structures of the National Social Security Institute or the revenue structures of the National Revenue Agency are tasked with finding infringements and drawing up infringement notices within their respective remits.

In order for the amounts under effective infringement notices to be recovered, the head of the relevant local office of the National Social Security Institute or an official authorised by them, or, alternatively, the revenue structures of the National Revenue Agency must issue penalty notices.

Infringements are established and penalty notices are issued, appealed and enforced according to the procedure set out in the Administrative Infringements and Sanctions Act.