What you will learn in this article
- Who qualifies as a self-employed person under the Social Insurance Code (SIC)
- What insurance risks can be covered and how to choose
- Contribution rates for each fund
- Minimum and maximum insurable income
- How monthly advance contributions are paid
- How the annual equalization works
- How to start and stop self-employment insurance
- Answers to 8 frequently asked questions
Who is a self-employed person (Art. 4(3) SIC)?
Under Art. 4(3) and Art. 5(2) of the Social Insurance Code, a self-employed person is a natural person who is obliged to pay social security contributions at their own expense.
1. Persons practising a liberal profession and/or craft
Lawyers, notaries, auditors, accountants, tax consultants, doctors and dentists in private practice, architects, engineers, translators, IT freelancers, and registered craftsmen.
2. Sole traders, partners, and owners of commercial companies
Sole traders (ET) performing business activities, owners or partners in LLCs/ELLCs who perform personal work in the company (without a DUK), and natural persons who are members of unincorporated partnerships.
3. Registered farmers and tobacco producers
Who is NOT self-employed
Managers under a DUK (insured under Art. 4(1)(7) SIC), persons working only under employment contracts, and persons working only under civil-law contracts (contributions are withheld by the commissioning party).
Types of insurance (SSI, HI, SMPI)
Mandatory insurance (minimum)
Self-employed persons are mandatorily insured for: disability due to general illness, old age, and death — covered through contributions to the Pension Fund.
Voluntary sickness and maternity insurance
Self-employed persons may optionally insure for sickness and maternity (S&M) (Art. 4(4) SIC). This provides entitlements to cash benefits for temporary incapacity (sick leave), pregnancy and childbirth, and childcare. The choice may be changed by end of January each year.
Supplementary mandatory pension insurance (SMPI)
Persons born after 31 December 1959 are mandatorily insured in a Universal Pension Fund (UPF) at a rate of 5%.
Health insurance (HI)
All self-employed persons owe health insurance contributions of 8%.
Contribution rates (2026)
| Fund / Contribution | Without S&M | With S&M |
|---|---|---|
| Pension Fund (born after 1959) | 14.80% | 14.80% |
| Sickness & Maternity Fund | — | 3.50% |
| SMPI — Universal Pension Fund (born after 1959) | 5.00% | 5.00% |
| Health Insurance | 8.00% | 8.00% |
| Total | 27.80% | 31.30% |
All contributions are entirely at the self-employed person’s expense — there is no employer share.
Minimum and maximum insurable income
Minimum insurable income (2026)
The minimum monthly insurable income is EUR 550.71 (BGN 1,077). Even if actual income is lower, contributions are owed on at least this amount.
Maximum insurable income (2026)
The maximum monthly insurable income is EUR 2,111.64 (BGN 4,130). No contributions are owed above this amount.
Example monthly calculation
At the minimum insurable income of EUR 550.71 without S&M:
- SSI contributions (14.80%): EUR 81.51
- SMPI (5.00%): EUR 27.54
- Health insurance (8.00%): EUR 44.06
- Total monthly contributions: EUR 153.10
With S&M (31.30%): Total monthly contributions: EUR 172.37
Monthly advance contributions
Self-employed persons pay advance contributions monthly on a chosen insurable income that is no less than the minimum and no more than the maximum.
Payment deadline: by the 25th day of the month following the month they relate to (Art. 7(4) SIC).
Declaration: Each month, the self-employed person files Declaration Form No. 1 with the NRA by the 25th of the following month.
Multiple activities: If the self-employed person carries out activities on different grounds, advance contributions are paid on one ground by the person’s choice.
Annual equalization
The final monthly insurable income is determined once per year based on data from the annual tax return (ATR) under Art. 50 PITA.
How it works
The equalization is performed through the Statement on the Final Insurable Income (Tables 1 and 2), an annex to the ATR.
- Determine the taxable income from self-employment activities.
- Apply 25% statutory deductible expenses (Art. 29(1)(3) PITA). Taxable income is 75% of gross income.
- Distribute taxable income across months of activity and compare with the advance insurable income.
- If actual monthly income exceeds the advance income, additional contributions are owed on the difference.
Deadline: The ATR is due by 30 April of the year following the relevant year. Additional contributions must be paid within the same deadline.
Starting and stopping insurance
Starting
The insurance obligation arises from the day activities begin. The person must file a declaration with the NRA within 7 days. The declaration also states the type of insurance (with or without S&M).
Suspension and cessation
Insurance may be suspended when the person temporarily ceases activity. A declaration must be filed within 7 days. Insurance terminates when the person permanently ceases activity.
Pensioners
Self-employed persons who receive a pension are insured only voluntarily. If they opt out, they owe no SSI or SMPI contributions, but health insurance contributions (8%) remain mandatory.
Changing insurance type
The type of insurance (with or without S&M) may be changed by end of January each year. No changes are permitted during the year.
Frequently asked questions
Need assistance?
Social security obligations for self-employed persons are complex and subject to frequent legislative changes. Errors in declaration and payment can lead to interest, sanctions, and loss of insurable service.
This article is prepared for informational purposes and does not constitute legal advice. For specific legal advice tailored to your situation, please consult a lawyer.
Get in touch
The Innovires team can assist you with social security compliance — from registration to annual equalization.