What Is The Net Salary In Sofia? A Guide For Expats And Locals

Let’s talk about salaries in Sofia, Bulgaria! In 2023, the minimum wage in Bulgaria is BGN 933 (about EUR 460). The average gross monthly salary in Sofia is around BGN 2,800 (about EUR 1,400), which means that after taxes and social contributions, you’ll likely receive a net salary of about BGN 2,200 (EUR 1,000).

It’s important to understand that these figures are just averages. Your actual net salary can vary depending on several factors, including:

Your specific job and industry: Some industries, like finance or technology, tend to pay higher salaries than others.
Your experience and qualifications: The more experience and education you have, the more you’re likely to earn.
Your employer: Different companies may have different salary structures and benefits packages.

Taxes and Social Contributions:

Bulgaria has a progressive income tax system, meaning that the more you earn, the higher percentage of your income you pay in taxes. The current income tax rates are:

10% on income up to BGN 3,000
20% on income between BGN 3,000 and BGN 10,000
32% on income over BGN 10,000

In addition to income tax, there are also social contributions that are deducted from your salary. These contributions fund social security benefits like pensions, healthcare, and unemployment insurance. The total social contribution rate is currently 25.6% of your gross salary, divided equally between the employer and the employee.

Calculating Your Net Salary:

To estimate your net salary, you can use an online salary calculator or a spreadsheet. Here’s a simplified example:

Gross salary: BGN 2,800
Income tax (20%): BGN 560
Social contributions (25.6%): BGN 716.80
Total deductions: BGN 1,276.80
Net salary: BGN 1,523.20 (approximately EUR 760)

It’s also important to remember that these figures are just approximations. To get an accurate estimate of your net salary, it’s best to consult with a financial advisor or your employer.