20.05.2022

WHAT SHOULD WE DO IF OUR SOCIAL SECURITY CONTRIBUTIONS HAVE NOT BEEN PAID?

Everyone has heard of the so-called social security contributions or social security contributions, as they are called by law, but only experts in the field of accounting, tax and social security law are aware of their nature, principles and calculation.

It is not uncommon for workers to face the unpleasant situation in which they realize that they cannot enjoy a number of rights granted by the state due to the fact that there are no paid social security contributions, which are in fact the basis for a number of benefits will be used on various occasions.

What are social security contributions, who should pay them and in what amount, and what can we do if we find out that we have not been paid?

Social security contributions are monthly cash payments that guarantee in the solidary social system of Bulgaria material (cash, etc.) protection of workers and employees in various social risks - illness, maternity, accidents at work, disability, unemployment, old age and death.

According to the law, all persons engaged in employment are compulsorily insured for general illness and maternity, disability due to general illness, old age and death, occupational accident and occupational disease and unemployment. Employers have a commitment to withhold and pay social security contributions for employees on a monthly basis. The insurances are due on the total gross remuneration of each of the employees within the limits of the minimum and maximum limits of the insurance income determined by law.

At present (May 2022) the minimum amount of insurance income in Bulgaria is BGN 710 and the maximum amount is BGN 3400. Therefore, if the employee receives remuneration in excess of BGN 3400, he will owe social security contributions only up to the amount of the maximum insurance income - BGN 3,400, but it cannot be insured on less than BGN 710 monthly gross remuneration. Social security is divided into funds - the Pension Fund, the General Illness and Maternity Fund, the Accident at Work and Occupational Disease Fund and the Unemployment Fund.

The total amount of social security contributions amounts to 32.70-33.40% of the gross remuneration, of which 18.92-19.62% are at the expense of the employer and 13.78% are deducted from the monthly remuneration at the expense of the employee.

Provided that the employer for one reason or another has not fulfilled its commitment to withhold and pay social security contributions for employees on a monthly basis (the deadline for payment of social security contributions is the 25th of the month following the month of employment. in other words, the insurance for May should be paid by June 25), then you have the opportunity to claim your rights in several ways.

In such a situation, the law gives you the right to terminate your employment contract without notice, pursuant to Art. 327, para. 1, item 2 of the Labor Code (when the employer delays the payment of the remuneration or of compensation under this code or under the social insurance). You can also request payment of the due insurances by referring to the relevant court, which will order a decision in your favor. Remember that state fees are not due in this type of court case.

At any time you have the right to contact the control bodies of the Labor Inspectorate, whose employees to inspect the company or institution and issue mandatory instructions to the employer, as well as to refer to the National Revenue Agency regarding non-payment of insurance and taxes by the relevant employer.