Net earnings and average tax rate


Time series: Labour_2.3.1_EN.xls

NET EARNINGS
(Levs)
  2011 2012 2013 2014 2015
Single person with no children and 50% of AW Total 4 989 5 302 5 596 5 943 6 392
Gross earnings (a) 4 225 4 489 4 738 5 032 5 413
Social security contributions (b) 545 579 611 649 698
Taxes (c) 368 391 413 438 471
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 3 312 3 519 3 714 3 945 4 243
Single person with no children and 67% of AW Total 6 685 7 104 7 498 7 963 8 565
Gross earnings (a) 5 661 6 015 6 349 6 743 7 253
Social security contributions (b) 730 776 819 870 936
Taxes (c) 493 524 553 587 632
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 4 438 4 715 4 977 5 286 5 685
Single person with no children and 80% of AW Total 7 983 8 482 8 953 9 508 10 227
Gross earnings (a) 6 759 7 182 7 581 8 051 8 660
Social security contributions (b) 872 927 978 1 039 1 117
Taxes (c) 589 626 660 701 754
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 5 299 5 630 5 943 6 311 6 789
Single person with no children and 100% of AW Total 9 978 10 603 11 191 11 886 12 784
Gross earnings (a) 8 449 8 978 9 476 10 064 10 825
Social security contributions (b) 1 090 1 158 1 222 1 298 1 396
Taxes (c) 736 782 825 877 943
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 6 623 7 038 7 428 7 889 8 486
Single person with no children and 125% of AW Total 12 473 13 254 13 989 14 857 15 980
Gross earnings (a) 10 561 11 223 11 845 12 580 13 531
Social security contributions (b) 1 362 1 448 1 528 1 623 1 746
Taxes (c) 920 977 1 032 1 096 1 179
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 8 279 8 797 9 285 9 861 10 607
Single person with no children and 167% of AW Total 16 664 17 707 18 689 19 849 21 350
Gross earnings (a) 14 110 14 993 15 825 16 807 18 078
Social security contributions (b) 1 820 1 934 2 041 2 168 2 332
Taxes (c) 1 229 1 306 1 378 1 464 1 575
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 11 061 11 753 12 405 13 175 14 171
Single person with two children and 67% of AW Total 6 685 7 104 7 498 7 963 8 565
Gross earnings (a) 5 661 6 015 6 349 6 743 7 253
Social security contributions (b) 730 776 819 870 936
Taxes (c) 493 524 553 587 632
Family allowances (d) 840 840 840 1 020 1 020
Net earnings (a-b-c+d) 5 278 5 555 5 817 6 306 6 705
Married couple with no children and 100% of the AW for the husband and 33% for the wife Total 13 271 14 102 14 884 15 808 17 003
Gross earnings (a) 11 237 11 941 12 603 13 385 14 397
Social security contributions (b) 1 450 1 540 1 626 1 727 1 857
Taxes (c) 979 1 040 1 098 877 1 254
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 8 809 9 360 9 880 10 782 11 286
Married couple with no children and 100% of the AW for the husband and 100% for the wife Total 19 957 21 206 22 382 23 771 25 569
Gross earnings (a) 16 898 17 956 18 952 20 128 21 650
Social security contributions (b) 2 180 2 316 2 445 2 597 2 793
Taxes (c) 1 472 1 564 1 651 1 753 1 886
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 13 246 14 076 14 856 15 778 16 971
Married couple with two children and 100% of the AW for the husband and 0% for the wife Total 9 978 10 603 11 191 11 886 12 784
Gross earnings (a) 8 449 8 978 9 476 10 064 10 825
Social security contributions (b) 1 090 1 158 1 222 1 298 1 396
Taxes (c) 736 782 825 877 943
Family allowances (d) 840 840 840 1 020 1 020
Net earnings (a-b-c+d) 7 463 7 878 8 268 8 909 9 506
Married couple with two children and 100% of the AW for the husband and 33% for the wife Total 13 271 14 102 14 884 15 808 17 003
Gross earnings (a) 11 237 11 941 12 603 13 385 14 397
Social security contributions (b) 1 450 1 540 1 626 1 727 1 857
Taxes (c) 979 1 040 1 098 877 1 254
Family allowances (d) 840 840 840 1 020 1 020
Net earnings (a-b-c+d) 9 649 10 200 10 720 11 802 12 306
Married couple with two children and 100% of the AW for the husband and 67% for the wife Total 16 664 17 707 18 689 19 849 21 350
Gross earnings (a) 14 110 14 993 15 825 16 807 18 078
Social security contributions (b) 1 820 1 934 2 041 2 168 2 332
Taxes (c) 1 229 1 306 1 378 1 464 1 575
Family allowances (d) 840 840 840 0 0
Net earnings (a-b-c+d) 11 901 12 593 13 245 13 175 14 171
Married couple with two children and 100% of the AW for the husband and 100% for the wife Total 19 957 21 206 22 382 23 771 25 569
Gross earnings (a) 16 898 17 956 18 952 20 128 21 650
Social security contributions (b) 2 180 2 316 2 445 2 597 2 793
Taxes (c) 1 472 1 564 1 651 1 753 1 886
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 13 246 14 076 14 856 15 778 16 971

Explanatory notes:
AW - average worker, working at full-time and receiving the average gross earnings in industries and services - sections B to N of NACE Rev. 2.
Total - total labour costs - gross annual earnings for the corresponding family case plus employers' social security contributions.
Gross earnings - gross annual earnings for the corresponding family case.
Social security contributions - employees' social security contributions.
Taxes - income taxes on gross annual earnings.
Family allowances - family benefits for dependent children.
Net earnings - net annual earnings for the corresponding family case, calculated by deducting the employee's social security contributions and income taxes, and adding family allowances (if applicable).
AVERAGE TAX RATE
(Per cent)
  2011 2012 2013 2014 2015
Single person with no children and 50% of AW 21.6 21.6 21.6 21.6 21.6
Single person with no children and 67% of AW 21.6 21.6 21.6 21.6 21.6
Single person with no children and 80% of AW 21.6 21.6 21.6 21.6 21.6
Single person with no children and 100% of AW 21.6 21.6 21.6 21.6 21.6
Single person with no children and 125% of AW 21.6 21.6 21.6 21.6 21.6
Single person with no children and 167% of AW 21.6 21.6 21.6 21.6 21.6
Single person with two children and 67% of AW 6.8 7.6 8.4 6.5 7.5
Married couple with no children and 100% of the AW for the husband and 33% for the wife 21.6 21.6 21.6 19.4 21.6
Married couple with no children and 100% of the AW for the husband and 100% for the wife 21.6 21.6 21.6 21.6 21.6
Married couple with two children and 100% of the AW for the husband and 0% for the wife 11.7 12.3 12.7 11.5 12.2
Married couple with two children and 100% of the AW for the husband and 33% for the wife 14.1 14.6 14.9 11.8 14.5
Married couple with two children and 100% of the AW for the husband and 67% for the wife 15.7 16.0 16.3 21.6 21.6
Married couple with two children and 100% of the AW for the husband and 100% for the wife 21.6 21.6 21.6 21.6 21.6

Explanatory notes:
Average Tax Rate = ((T + SSC - FA) / GE)*100
Taxes (T) - income taxes on gross annual earnings.
Social security contributions (SSC) - employees' social security contributions.
Family allowances (FA) - family benefits for dependent children.
Gross earnings (GE) - gross annual earnings for the corresponding family case.
or
Average Tax Rate = (1 - (NE / GE))*100
Net earnings (NE) - net annual earnings for the corresponding family case, calculated by deducting the employee's social security contributions and income taxes, and adding family allowances (if applicable).
AW - average worker, working at full-time and receiving the average gross earnings in industries and services - sections B to N of NACE Rev. 2.
20.12.2016
Net earnings and tax rates - net earnings, average tax rate, tax wedge on labour costs, unemployment trap, low wage trap - national level
Contact
Contact organisation

National Statistical Institute

Contact organisation unit

"Labour Statistics" Department

Contact name

Emilia Milosheva

Contact person function

State expert

Contact mail address

2, P. Volov Str.

Contact email address

[email protected]

Contact phone number

+35929857610

Contact fax number
Metadata update
Metadata last certified30 June 2014
Metadata last posted30 June 2014
Metadata last update30 June 2014
Statistical presentation
Data description

"Net earnings and Tax rates" is a group of indicators and variables based on illustrative models developed by OECD. Information is provided on:

a) net earnings - information is provided for the variables: total labour costs, gross earnings, social security contributions, income taxes, family allowances, net earnings;

b) tax rates;

c) tax wedge on labour costs;

d) unemployment trap;

e) low wage trap.

All indicators and variables are based on gross earnings, social security contributions, personal income tax, family allowances and other benefits.

Data refer to an average worker in different illustrative cases, defined on the bases of marital status (single vs. married), number of workers (in case of couples), number of dependent children and level of gross earnings, expressed as percentage of the average earnings of an average worker.

Classification system

· National Classification of Economic Activities (NCEA-2003, for international use NACE.BG 2003) - up to 2007;

· Classification of Economic Activities (CEA-2008, for international use NACE.BG 2008) - since 2008.

Sector coverage

Economic activities within sections C to K of NACE.BG-2003 from 2000 to 2007, and since 2008 in sections B to N of NACE.BG-2008.

Statistical concepts and definitions

All indicators and variables are based on gross earnings, social security contributions, personal income tax, family allowances and other benefits.

Data refer to an average worker in different illustrative cases, defined on the bases of marital status (single vs. married), number of workers (in case of couples), number of dependent children and level of gross earnings, expressed as percentage of the average earnings of an average worker. According to the model developed by OECD, the average worker (AW) is a full-time employee who receives the average earnings in industries and services - sections C to K of NACE.BG-2003 from 2000 to 2007, and since 2008 in sections B to N of NACE.BG-2008.

Gross earnings cover remuneration in cash, paid during the reference year by the employer, before tax deductions and social security contributions payable by employees and retained by the employer. All regular and irregular bonuses are included. Severance payments and payments in kind are excluded.

Net earnings are the annual net incomes for the corresponding family case, calculated from the gross earnings by deducting employees' social security contributions and personal income taxes, and adding family allowances (if applicable). The following situations are considered:

- single person with no children and earnings level of 50%, 67%, 80%, 100%, 125% and 167% of the AW respectively;

- single person with two children and earnings level of 67% of the AW;

- married couple with two children and the following levels of earnings of the AW: husband 100%/wife 0%; husband 100%/wife 33%; husband 100%/wife 67%; husband 100%/wife 100%;

- married couple with no children and earnings levels as percentage of the AW: husband 100%/wife 33%; husband 100%/wife 100%.

The average tax rate is defined as the income tax on gross earnings plus the employee's social security contributions less family allowances, expressed as a percentage of gross wage earnings.

The tax wedge on labour costs is defined as income tax on gross wage earnings plus employee's and employer's social security contributions, expressed as a percentage of the total labour costs. The total labour costs are defined as the total from the gross earnings plus employer?s social security contributions plus payroll taxes, paid by the employer (not applicable in Bulgaria).

The unemployment trap measures the percentage of gross earnings which is taxed away by the combined effect of the levied taxes and social contributions and the withdrawal of unemployment, and other benefits, when an unemployed person returns to employment.

The low wage trap (LWT) measures the percentage of gross earnings which is taxed away by the combined effect of the levied taxes and social contributions and the withdrawal of social benefits, when employee's gross earnings increase from 33% to 67% of the AW. LWT provides information on the financial consequences for an employed person when increasing his/her work efforts (either as an increased number of hours worked or due to changes in skills) and thus of his/her wages. The indicator is calculated for:

- single person with no children;

- one-earner married couple with two children.

Methods of calculations of indicators are described in the document "Net earnings and tax rates - definitions and models": http://www.nsi.bg/sites/default/files/files/metadata/Labour_Methodology_2.3_EN.pdf

Statistical unit

The statistical unit is the family. All situations are illustrative and may not be representative in Bulgaria.

Statistical population

All families in Bulgaria.

Reference area

Area of Republic of Bulgaria.

Time coverage

2000 - 2012

Base period

Not applicable.

Unit of measure

BGN, percent (%).

Reference period

Calendar year

Institutional mandate
Legal acts and other agreements

The data are collected on the basis of gentlemen's agreements.

Data sharing

Not applicable.

Confidentiality
Confidentiality - policy

· Law on Statistics (Statistics Act);

· Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.

Confidentiality - data treatment

Not applicable.

Release policy
Release calendar

Not part from the release calendar.

Release calendar access

Not applicable.

User access

Data are published on the website of NSI under heading "Labour market"  in accordance with Law on Statistics (Chapter 5) and the European Statistics Code of Practice respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably.

Frequency of dissemination

Annual

Accessibility and clarity
News release

None.

Publications

None.

On-line database

Indicators are accessible to all users on the NSI's website under heading Labour market - Annual statistics on employment and labour cost - Structural indicators:

· Net earnings and average tax rate: http://www.nsi.bg/en/node/6445

· Tax wedge on labour costs: http://www.nsi.bg/en/node/6448

· Unemployment trap: http://www.nsi.bg/en/node/6451

· Low wage trap: http://www.nsi.bg/en/node/6454

Micro-data access

Not applicable.

Other

Not applicable.

Documentation on methodology

Methodology used is published in the annual editions of OECD:

· "Taxing wages" - http://www.oecd.org/media/oecdorg/directorates/centrefortaxpolicyandadministration/Methodology_2011.pdf

· "Benefits and Wages".

Methods of calculations are described in the document "Net earnings and tax rates - definitions and models: http://www.nsi.bg/sites/default/files/files/metadata/Labour_Methodology_2.3_EN.pdf

Quality documentation

None.

Quality management
Quality assurance

According to Article 2, Para 3 of the Bulgarian Law on Statistics statistical information shall be produced in compliance with the following criteria for quality: adequacy, accuracy, timeliness, punctuality, accessibility and clarity, comparability and logical consistency.

Quality assessment

Not done.

Relevance
User needs

Main users are Eurostat and OECD. (Until 2007 NSI did calculations by the established methodology and delivered figures to Eurostat. Since 2008 calculations are done by OECD based on a questionnaire answered annually by NSI concerning characteristics of social and tax legislation in Bulgaria).

User satisfaction

Survey on users' satisfaction is not carried out.

Completeness

All indicators from the group are calculated.

Accuracy and reliability
Overall accuracy

Source of data on gross annual earnings in industries and services is the annual survey on "Employed persons, wages and salaries and other labour costs" which is an exhaustive statistical survey.

Sampling error

Not applicable.

Non-sampling error

Not applicable.

Timeliness and punctuality
Timeliness

Deadline for publication: 12 months after the reference year.

Punctuality

Punctuality depends on the availability of data on gross annual earnings.

Coherence and comparability
Comparability - geographical

Definitions and methodology of OECD are applied.

Comparability - over time

Comparability over time is influenced by the change of the classification of economic activities used for definition of average gross annual earnings in industries and services - economic activities within sections C to K of NACE.BG 2003 from 2000 to 2007, and since 2008 in sections B to N of NACE.BG 2008.

Coherence - cross domain

Indicators within the data set are internally coherent.

Coherence - internal

All utilized models are illustrative, representing hypothetical situations and may not be representative at national level or compliant with other sources of similar information.

Cost and burden

Survey on respondents' burden is not carried out.

Data revision
Data revision - policy

It is applied only if there is revision of gross annual earnings which is base for calculation of the indicators.

Data revision - practice

It is applied only if there is revision of gross annual earnings which is base for calculation of the indicators.

Statistical processing
Source data

Source of data on gross annual earnings in industries and services is the annual survey "Employed persons, wages and salaries and other labour costs" which is an exhaustive statistical survey:

http://www.nsi.bg/en/node/6437

Frequency of data collection

Not applicable.

Data collection

Not applicable.

Data validation

Arithmetic checks are applied on the calculations.

Data compilation

Calculated are aggregated average annual earnings for sections B to N of NACE.BG-2008.

Adjustment

Not applicable.

Comment
Metadata Structure Definition: ESMS_MSD+BNSI+2.0+SDMX.2.0.xml

Pages

Pages