EOOD manager insurance — complete guide
The manager of a sole-owner limited liability company (EOOD) is often also the sole owner. The key question then is how to legally insure yourself: as a self-insured person in the capacity of owner or through a management contract treated as an employment relationship. Both models are permissible under the social security legislation; the choice depends on actual income, desired insurance rights, administrative burden and whether the company can bear the full package of employer contributions.
If you are still planning registration, review online company registration and the structured guide Registering an EOOD in Bulgaria — they describe the documents and typical scenarios even before you get to the manager's insurance regime.
Two Main Approaches
Self-Insurance as an Owner
Under this option you register as a self-insured person and pay social security contributions on a chosen insurable income within the statutory minimum and maximum for the respective category. Contributions do not automatically follow the amount of actual remuneration from the company in the way a salary does for a hired manager — it is important to choose the correct insurance category and to reconcile with actual income during the annual equalisation.
Management Contract
If you conclude a management contract that meets the requirements for equating it to an employment relationship, social security obligations arise as in standard hiring: part of the contributions are withheld from the manager, part are paid by the company as employer. The total economic burden for the company and the manager together is higher than typical self-insurance on a minimum or moderate insurable income, but the insurance rights are closer to those under an employment contract.
Self-Insurance: Minimum Insurable Income for 2026
For 2026 the minimum insurable income for self-insured persons in the relevant categories is 477 € per month. You can choose a higher insurable income up to the statutory maximum if you aim for higher insurance rights (pension, benefits, etc.) — as long as the choice is consistent with actual income and the rules for annual equalisation.
What Contributions Are Due: SSI, MPSF and HI
A self-insured person pays distinct components on the chosen insurable income:
- SSI (State Social Insurance) — core contributions for pension, general sickness and maternity (GSM), unemployment, etc., depending on the applicable insurance category and the rates in effect.
- MPSF (Mandatory Supplementary Pension Insurance) — contributions to a universal pension fund where required by the Social Security Code.
- HI (Health Insurance) — health contributions to the NHIF under the applicable scenario.
The exact rates are determined by the legislation and secondary acts in force for the respective year. For self-insured persons with income from work as EOOD managers the total burden on insurable income is usually about 30–32% (with minor variations when the law changes or under a different insurance status). For an exact calculation for a specific month use the NRA/NSSI calculator or an accountant.
Management Contract: Full Social Security Contributions
Under a management contract equated to an employment relationship, employee and employer social security contributions apply. The employee portion alone is often about 31% of the insurable base (the salary), and the employer percentages are added on top — meaning the total burden for the company and the manager together is comparable to full insurance in a hiring scenario, not the single package of self-insurance.
Comparison of the Two Models
| Criterion | Self-Insurance (owner) | Management Contract (as employment) |
|---|---|---|
| Contribution base | Chosen insurable income (min. 477 € for 2026) | Insurable salary per the contract |
| Typical total burden | About 30–32% on chosen income (self-insured) | Employee + employer contributions (significantly higher total burden) |
| Administration | Declarations 1 and 6, annual equalisation | Contributions as for an employee + employer procedures |
| When it makes sense | Limited budget, minimum contributions at a legally permissible income | Need for rights close to an employment contract; higher remuneration |
When Each Option Makes Sense
Self-insurance is often chosen when starting a business with moderate turnover and a desire to keep contribution costs predictable, as long as the insurable income is consistent with actual income under the equalisation rules.
A management contract is appropriate when the company can afford the full contribution package and when you want a clear link between monthly remuneration and insurance rights as with a hired employee. Switching between regimes requires accounting and social security consultation to avoid gaps in filings.
Monthly Obligations: Declaration 1 and Declaration 6
Regardless of the model, monthly deadlines with the National Revenue Agency (NRA) must be met:
- Declaration form 1 — reports the fulfilment of social security contribution obligations for the previous month.
- Declaration form 6 — declares the social security contributions due for the current month.
Filing is done through the NRA's electronic services portal or via an accountant. Late filings incur interest and penalties.
Annual Equalisation
For self-insured persons an annual equalisation of social security contributions is performed against the actual income received during the year and the chosen regime. In practice this means that monthly advance contributions may differ from the final obligation — it is important to maintain correct accounting of income from management and other sources as applicable.
Common Mistakes to Avoid
- Declaring an insurable income that is too low relative to actual income received.
- Confusing profit distribution with management remuneration when determining social security obligations.
- Missing deadlines for Declaration 1 and Declaration 6.
- Switching models (self-insurance ↔ management contract) without updating contracts and the insurance category.
For the overall context of starting a business in Bulgaria also see How to Start a Company in Bulgaria — Complete Guide.
Summary and Next Step
Insuring an EOOD manager is a strategic choice between self-insurance on an insurable income (with a minimum of 477 € for 2026) and a management contract with full social security contributions. In both cases what matters is SSI, where applicable MPSF, HI, regular Declarations 1 and 6 and annual equalisation for self-insured persons.
Ready to register an EOOD or organise the next steps? Start at register a company with Firmify and the detailed guide Registering an EOOD in Bulgaria. Firmify helps you prepare the document package and electronic filing to the Commercial Register — fewer mistakes, clearer steps, more peace of mind from day one of your company.