In 2023, approximately 2,400 Bulgarians earned monthly incomes exceeding 50,000 leva (around 25,000 euros), according to data requested by Mediapool. Of these high earners, around two-thirds received between 50,000 leva and 100,000 leva per month, while the highest earners saw annual incomes of up to 6 million leva, derived from salaries and management fees.
Meanwhile, more than a million people in Bulgaria reported taxable incomes below 1,000 leva (around 500 euros) per month, and only about 175,000 individuals, representing 7% of wage earners, had monthly salaries ranging between 3,000 leva and 5,000 leva. The National Revenue Agency (NRA) data indicate that 9 out of 10 employed individuals earn less than 3,000 leva per month.
Commenting on the stark income inequality in Bulgaria, Maria Zhelyazkova from the Institute of Philosophy and Sociology at the Bulgarian Academy of Science (BAS) noted that the income gap between the lowest and highest salaries in the country exceeded 1,000 times. She emphasized that such inequality was detrimental to European societies, comparing Bulgaria’s situation to countries like El Salvador, Kenya and the Dominican Republic, and noting that it was slightly better than that in the United States. Zhelyazkova argued that there should be an annual cap on taxable income rather than a monthly one and that high-income earners should be taxed more comprehensively.
Until 2022, the highest reported taxable income in Bulgaria was 38.6 million leva, equivalent to just over 3.2 million leva per month. The previous year, the top salary was slightly lower, at 27.8 million leva annually, or about 2.3 million leva per month. Economist Lychezar Bogdanov pointed out that these “millionaire” salaries likely reflected attempts by some companies to distribute profits to employees rather than paying out dividends, which would be subject to a 5% tax. The information suggests that these high incomes are not necessarily tied to large international corporations but rather to relatively unknown companies. (Novinite)