REGARDING: application of insurance legislation
In connection with the application of the insurance legislation related to the mandatory insurance contributions and contributions to the Guaranteed receivables of workers and employees fund, on the basis of Art. 10, para. 1, item 10 of the Law on the National Revenue Agency, I express the following opinion:
I. The Law on the Implementation of Provisions of the Law on the State Budget of the Republic of Bulgaria for 2021, the Law on the State Public Insurance Budget for 2021 and the Law on the Budget of the National Health Insurance Fund for 2021 was promulgated (promulgated SG, No. 8, dated January 28, 2022).
According to §14 of the transitional and final provisions, the law enters into force on January 1, 2022, and on the basis of Art. From March 2 to March 31, 2022, the amounts determined by the Law on the State Social Insurance Budget for 2021 (for 2021) shall apply to:
1. The minimum monthly amount of insurance income for main economic activities and qualification groups of professions according to Annex No. 1 to Art. 9, item 1 of the Law on the State Social Insurance Budget for 2021;
2. The minimum monthly amount of insurance income for self-insured persons – 650 BGN;
3. The minimum monthly amount of insurance income for registered farmers and tobacco producers – 420 BGN;
4. The maximum monthly amount of insurance income – 3,000 BGN;
5. The amount of the insurance contribution for the “Work accident and occupational disease” fund by groups of main economic activities according to Annex No. 2 to Art. 14 of the LAW ON THE STATE PUBLIC SECURITY BUDGET for 2021.
Pursuant to the same provision of the law, the provision of Art. 15 para. 1 of the LAW ON THE STATE PUBLIC SECURITY BUDGET or 2021 – i.e. no contributions are made to the “Guaranteed receivables of employees” fund.
Pursuant to Art. 3 of the Law on the Implementation of Provisions of the Law on the State Budget of the Republic of Bulgaria for 2021, the Law on the State Public Insurance Budget for 2021 and the Law on the Budget of the National Health Insurance Fund for 2021 until March 31, 2022 applies the amount of the mandatory health insurance contribution – 8 percent, defined in Art. 2 of the Law on the budget of the National Health Insurance Fund for 2021. When determining the income on which health insurance contributions are paid for persons under Art. 4, para. 1 and para. 3, item 1, 2 and 4 of the Social Insurance Code (SIC) (self-insured persons within the meaning of the code), the insurance income on which insurance contributions are due for the state social insurance is taken into account.
The persons under Art. 40, para. 5 of the Health Insurance Act (HIA) continue to pay health insurance contributions on an insurance income of no less than BGN 325 (half of the minimum amount of insurance income for self-insured persons, determined by the Health Insurance Act for 2021). The health insurance contribution for this group of persons is not less than 26.00 BGN per month.
The minimum amount of the insurance income for self-insured persons (650 BGN) determined by the LAW ON THE STATE PUBLIC SECURITY BUDGET for 2021 is tied to the insurance income for health insurance in case of unpaid leave, in case of incapacity for work due to illness, pregnancy and childbirth, in case of leave to raise a small child under the order of art. 164, para. 1 and para. 3 of the Labor Code (LC) and in case of adoption of a child up to 5 years of age in accordance with Art. 164b, para. 1 and para. 5 of CT.
II. Pursuant to Art. 40, para. 4a of the Law on Health Insurance from January 1, 2022, the health insurance contribution for persons insured at the expense of the state budget is paid on 85 percent of the minimum insurance income for self-insured persons – 552.50 BGN.
III. Regarding the persons, under Art. 4b and Art. 124a of Social security code, it is necessary to consider the following:
From January 1, 2022 to December 31, 2025, according to Art. 4b, para. 1, item 1 of the Social Security Code, persons within the meaning of the same provision may choose to change their insurance from a universal pension fund to a “Pensions” fund, respectively to a “Pensions for persons under Article 69 of the Social Security Code” fund of the state social insurance, when they have not been granted a pension for insurance length of service and age, and if they have no less than 1 year left from the date of election until they reach the age required for them under Art. 68, para. 1 of Social Security Code
From January 1, 2022 to December 31, 2025, according to Art. 124a, para. 1, item 1 of the Social Security Code, persons within the meaning of the same provision may choose to resume their insurance in a universal pension fund, if they have not been granted a pension for length of service and age and if they have not less than 1 year left from the date of the election until reaching the age required for them under Art. 68, para. 1 of Social Security Code. In this case, the right to choose is exercised after one year has passed since the choice under Art. 4b, para. 1 of the Code.
IV. By Order No.RD01-342 of 10.12.2021 of the Minister of Labor and Social Policy (effective from 1 January 2022), the following amendments and additions were made to the National Classification of Professions and Positions 2011 (NCPD 2011):
1. A list of new job titles included in National classification of occupations and positions 2011 was approved, which are: hut with code 14393014; art therapist with code 26346005; technician, service maintenance of turbines in wind energy with code 31133022 and work mentor with code 34123019.
2. The name of Unit Group 2240 of the National classification of occupations and positions 2011 was changed from “Paramedical specialists” to “Medical assistants and paramedics”.
In connection with the application of the insurance legislation related to the mandatory insurance contributions and contributions to the Guaranteed receivables of workers and employees fund, on the basis of Art. 10, para. 1, item 10 of the Law on the National Revenue Agency, I express the following opinion:
I. The Law on the Implementation of Provisions of the Law on the State Budget of the Republic of Bulgaria for 2021, the Law on the State Public Insurance Budget for 2021 and the Law on the Budget of the National Health Insurance Fund for 2021 was promulgated (promulgated SG, No. 8, dated January 28, 2022).
According to §14 of the transitional and final provisions, the law enters into force on January 1, 2022, and on the basis of Art. From March 2 to March 31, 2022, the amounts determined by the Law on the State Social Insurance Budget for 2021 (for 2021) shall apply to:
1. The minimum monthly amount of insurance income for main economic activities and qualification groups of professions according to Annex No. 1 to Art. 9, item 1 of the Law on the State Social Insurance Budget for 2021;
2. The minimum monthly amount of insurance income for self-insured persons – 650 BGN;
3. The minimum monthly amount of insurance income for registered farmers and tobacco producers – 420 BGN;
4. The maximum monthly amount of insurance income – 3,000 BGN;
5. The amount of the insurance contribution for the “Work accident and occupational disease” fund by groups of main economic activities according to Annex No. 2 to Art. 14 of the LAW ON THE STATE PUBLIC SECURITY BUDGET for 2021.
Pursuant to the same provision of the law, the provision of Art. 15 para. 1 of the LAW ON THE STATE PUBLIC SECURITY BUDGET or 2021 – i.e. no contributions are made to the “Guaranteed receivables of employees” fund.
Pursuant to Art. 3 of the Law on the Implementation of Provisions of the Law on the State Budget of the Republic of Bulgaria for 2021, the Law on the State Public Insurance Budget for 2021 and the Law on the Budget of the National Health Insurance Fund for 2021 until March 31, 2022 applies the amount of the mandatory health insurance contribution – 8 percent, defined in Art. 2 of the Law on the budget of the National Health Insurance Fund for 2021. When determining the income on which health insurance contributions are paid for persons under Art. 4, para. 1 and para. 3, item 1, 2 and 4 of the Social Insurance Code (SIC) (self-insured persons within the meaning of the code), the insurance income on which insurance contributions are due for the state social insurance is taken into account.
The persons under Art. 40, para. 5 of the Health Insurance Act (HIA) continue to pay health insurance contributions on an insurance income of no less than BGN 325 (half of the minimum amount of insurance income for self-insured persons, determined by the Health Insurance Act for 2021). The health insurance contribution for this group of persons is not less than 26.00 BGN per month.
The minimum amount of the insurance income for self-insured persons (650 BGN) determined by the LAW ON THE STATE PUBLIC SECURITY BUDGET for 2021 is tied to the insurance income for health insurance in case of unpaid leave, in case of incapacity for work due to illness, pregnancy and childbirth, in case of leave to raise a small child under the order of art. 164, para. 1 and para. 3 of the Labor Code (LC) and in case of adoption of a child up to 5 years of age in accordance with Art. 164b, para. 1 and para. 5 of CT.
II. Pursuant to Art. 40, para. 4a of the Law on Health Insurance from January 1, 2022, the health insurance contribution for persons insured at the expense of the state budget is paid on 85 percent of the minimum insurance income for self-insured persons – 552.50 BGN.
III. Regarding the persons, under Art. 4b and Art. 124a of Social security code, it is necessary to consider the following:
From January 1, 2022 to December 31, 2025, according to Art. 4b, para. 1, item 1 of the Social Security Code, persons within the meaning of the same provision may choose to change their insurance from a universal pension fund to a “Pensions” fund, respectively to a “Pensions for persons under Article 69 of the Social Security Code” fund of the state social insurance, when they have not been granted a pension for insurance length of service and age, and if they have no less than 1 year left from the date of election until they reach the age required for them under Art. 68, para. 1 of Social Security Code
From January 1, 2022 to December 31, 2025, according to Art. 124a, para. 1, item 1 of the Social Security Code, persons within the meaning of the same provision may choose to resume their insurance in a universal pension fund, if they have not been granted a pension for length of service and age and if they have not less than 1 year left from the date of the election until reaching the age required for them under Art. 68, para. 1 of Social Security Code. In this case, the right to choose is exercised after one year has passed since the choice under Art. 4b, para. 1 of the Code.
IV. By Order No.RD01-342 of 10.12.2021 of the Minister of Labor and Social Policy (effective from 1 January 2022), the following amendments and additions were made to the National Classification of Professions and Positions 2011 (NCPD 2011):
1. A list of new job titles included in National classification of occupations and positions 2011 was approved, which are: hut with code 14393014; art therapist with code 26346005; technician, service maintenance of turbines in wind energy with code 31133022 and work mentor with code 34123019.
2. The name of Unit Group 2240 of the National classification of occupations and positions 2011 was changed from “Paramedical specialists” to “Medical assistants and paramedics”.
Source: NRA
