Net earnings and average tax rate


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Time series: Labour_2.3.1_EN.xls

NET EARNINGS
(Levs)
  2013 2014 2015 2016 2017
Single person with no children and 50% of AW Total 5 596 5 943 6 392 6 908 7 578
Gross earnings (a) 4 738 5 032 5 413 5 850 6 386
Social security contributions (b) 611 649 698 755 852
Taxes (c) 413 438 471 509 553
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 3 714 3 945 4 243 4 585 4 981
Single person with no children and 67% of AW Total 7 498 7 963 8 565 9 257 10 154
Gross earnings (a) 6 349 6 743 7 253 7 838 8 557
Social security contributions (b) 819 870 936 1 011 1 142
Taxes (c) 553 587 632 683 742
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 4 977 5 286 5 685 6 144 6 674
Single person with no children and 80% of AW Total 8 953 9 508 10 227 11 053 12 124
Gross earnings (a) 7 581 8 051 8 660 9 359 10 218
Social security contributions (b) 978 1 039 1 117 1 207 1 363
Taxes (c) 660 701 754 815 885
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 5 943 6 311 6 789 7 337 7 969
Single person with no children and 100% of AW Total 11 191 11 886 12 784 13 817 15 155
Gross earnings (a) 9 476 10 064 10 825 11 699 12 772
Social security contributions (b) 1 222 1 298 1 396 1 509 1 704
Taxes (c) 825 877 943 1 019 1 107
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 7 428 7 889 8 486 9 171 9 961
Single person with no children and 125% of AW Total 13 989 14 857 15 980 17 271 18 944
Gross earnings (a) 11 845 12 580 13 531 14 624 15 965
Social security contributions (b) 1 528 1 623 1 746 1 886 2 130
Taxes (c) 1 032 1 096 1 179 1 274 1 384
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 9 285 9 861 10 607 11 464 12 452
Single person with no children and 167% of AW Total 18 689 19 849 21 350 23 074 25 309
Gross earnings (a) 15 825 16 807 18 078 19 537 21 329
Social security contributions (b) 2 041 2 168 2 332 2 520 2 845
Taxes (c) 1 378 1 464 1 575 1 702 1 848
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 12 405 13 175 14 171 15 315 16 636
Single person with two children and 67% of AW Total 7 498 7 963 8 565 9 257 10 154
Gross earnings (a) 6 349 6 743 7 253 7 838 8 557
Social security contributions (b) 819 870 936 1 011 1 142
Taxes (c) 553 587 632 683 742
Family allowances (d) 840 1 020 1 020 1 020 1 020
Net earnings (a-b-c+d) 5 817 6 306 6 705 7 164 7 694
Married couple with no children and 100% of the AW for the husband and 33% for the wife Total 14 884 15 808 17 003 18 376 20 156
Gross earnings (a) 12 603 13 385 14 397 15 560 16 987
Social security contributions (b) 1 626 1 727 1 857 2 007 2 266
Taxes (c) 1 098 877 1 254 1 355 1 472
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 9 880 10 782 11 286 12 197 13 249
Married couple with no children and 100% of the AW for the husband and 100% for the wife Total 22 382 23 771 25 569 27 633 30 311
Gross earnings (a) 18 952 20 128 21 650 23 398 25 544
Social security contributions (b) 2 445 2 597 2 793 3 018 3 408
Taxes (c) 1 651 1 753 1 886 2 038 2 214
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 14 856 15 778 16 971 18 342 19 923
Married couple with two children and 100% of the AW for the husband and 0% for the wife Total 11 191 11 886 12 784 13 817 15 155
Gross earnings (a) 9 476 10 064 10 825 11 699 12 772
Social security contributions (b) 1 222 1 298 1 396 1 509 1 704
Taxes (c) 825 877 943 1 019 1 107
Family allowances (d) 840 1 020 1 020 1 020 1 020
Net earnings (a-b-c+d) 8 268 8 909 9 506 10 191 10 981
Married couple with two children and 100% of the AW for the husband and 33% for the wife Total 14 884 15 808 17 003 18 376 20 156
Gross earnings (a) 12 603 13 385 14 397 15 560 16 987
Social security contributions (b) 1 626 1 727 1 857 2 007 2 266
Taxes (c) 1 098 877 1 254 1 355 1 472
Family allowances (d) 840 1 020 1 020 1 020 1 020
Net earnings (a-b-c+d) 10 720 11 802 12 306 13 217 14 269
Married couple with two children and 100% of the AW for the husband and 67% for the wife Total 18 689 19 849 21 350 23 074 25 309
Gross earnings (a) 15 825 16 807 18 078 19 537 21 329
Social security contributions (b) 2 041 2 168 2 332 2 520 2 845
Taxes (c) 1 378 1 464 1 575 1 702 1 848
Family allowances (d) 840 0 0 0 0
Net earnings (a-b-c+d) 13 245 13 175 14 171 15 315 16 636
Married couple with two children and 100% of the AW for the husband and 100% for the wife Total 22 382 23 771 25 569 27 633 30 311
Gross earnings (a) 18 952 20 128 21 650 23 398 25 544
Social security contributions (b) 2 445 2 597 2 793 3 018 3 408
Taxes (c) 1 651 1 753 1 886 2 038 2 214
Family allowances (d) 0 0 0 0 0
Net earnings (a-b-c+d) 14 856 15 778 16 971 18 342 19 923
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)
  2013 2014 2015 2016 2017
Single person with no children and 50% of AW 21.6 21.6 21.6 21.6 22.0
Single person with no children and 67% of AW 21.6 21.6 21.6 21.6 22.0
Single person with no children and 80% of AW 21.6 21.6 21.6 21.6 22.0
Single person with no children and 100% of AW 21.6 21.6 21.6 21.6 22.0
Single person with no children and 125% of AW 21.6 21.6 21.6 21.6 22.0
Single person with no children and 167% of AW 21.6 21.6 21.6 21.6 22.0
Single person with two children and 67% of AW 8.4 6.5 7.5 8.6 10.1
Married couple with no children and 100% of the AW for the husband and 33% for the wife 21.6 19.4 21.6 21.6 22.0
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 22.0
Married couple with two children and 100% of the AW for the husband and 0% for the wife 12.7 11.5 12.2 12.9 14.0
Married couple with two children and 100% of the AW for the husband and 33% for the wife 14.9 11.8 14.5 15.1 16.0
Married couple with two children and 100% of the AW for the husband and 67% for the wife 16.3 21.6 21.6 21.6 22.0
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 22.0
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.
24.06.2019
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
Download in SDMX file format: Net earnings and tax rates - net earnings, average tax rate, tax wedge on labour costs, unemployment trap, low wage trap - national level
Metadata Structure Definition: ESMS_MSD+BNSI+2.0+SDMX.2.0.xml

Pages

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    The Statistical Reference Book presents topical information on the demographic processes as well as the economic, social and cultural development of the Republic of Bulgaria for the 2015 - 2018 period.

  • Statistical Yearbook 2018
    The National Statistical Institute (NSI) has the pleasure to present to the attention of national and foreign users of statistical information the 86th edition of the ‘Statistical Yearbook of the Republic of Bulgaria’ in printed and electronic format.

    It provides current statistical information about the demographic, economic and social development of the country for 2012 - 2017 in different territorial and classification aggregations and breakdowns.

Pages