State Social Insurance (SSI)

A compulsory social insurance system organized and administered by the state. It is funded through contributions from employees, employers, and the state, and provides pensions, benefits, and other social payments. SSI is the first pillar of Bulgaria’s pension system and operates on a pay-as-you-go principle. Contributions are calculated based on insurable income and flow into the Pensions Fund, from which current pensions are paid. Other funds include General Sickness and Maternity, Occupational Accidents and Diseases, and Unemployment, which provide the respective benefits.