ORDINANCE ON SALARY STRUCTURE AND ORGANIZATION

ORDINANCE ON SALARY STRUCTURE AND ORGANIZATION

In force from 01.07.2007

Adopted by Decree of the Council of Ministers No 4 of 17.01.2007

Prom. SG. 9/26 Jan 2007, amend. SG. 56/10 Jul 2007, amend. SG. 83/16 Oct 2007, amend. SG. 11/5 Feb 2008, amend. SG. 10/6 Feb 2009, amend. SG. 67/21 Aug 2009, amend. SG. 95/2 Dec 2011, amend. SG. 106/30 Dec 2011, amend. SG. 21/13 Mar 2012, suppl. SG. 49/29 Jun 2012, amend. SG. 66/24 Jul 2020

Chapter one.
GENERAL PROVISIONS

Art. 1. This Ordinance shall regulate the structure and organization of salary, the types and minimum amounts of additional remunerations, the procedure and manner of definition and calculation of the pay of workers and employees.

 

Art. 2. (1) The Ordinance shall apply to the following:

1. conduct of collective bargaining;

2. development and implementation of internal salary rules and other internal documents of the undertaking related thereto;

3. occurrence, amendment and termination of employment legal relations, as well as to negotiation of the employment legal relation terms;

4. determining and calculating the pay of workers and employees.

(2) The Ordinance shall apply to workers and employees under employment legal relations at all undertakings within the meaning of § 1, item 2 of the Additional provisions of the Labour Code, regardless of the ownership form and financing source.

(3) (new - SG 95/11, in force from 15.03.2012, amend. - SG 106/11, in force from 01.01.2012, revoked - SG 21/12, in force from 15.03.2012, new - SG 49/12, in force from 01.07.2012) This Ordinance does not apply to employees under the employment relationship in the state administration to which Art. 107a of the Labor Code shall be applied.

 

Chapter two.
SALARY STRUCTURE

Section I.
GROSS SALARY

Art. 3: Gross salary shall consist of:

1. basic salary, determined in compliance with the legislation in force and the labour payment system applied;

2. additional remunerations laid down in the Labour Code, the Ordinance or another statutory instrument or collective agreement;

3. other labour remunerations set out in a statutory instrument or individual employment contract, which are not by item 1 and 2.

 

Section II.
Basic Salary

Art. 4. (1) Basic salary is paid for performance of assigned employment tasks, obligations and fulfillment of liabilities inherent to the workplace or position in compliance with the approved quality and quantity work standards as well as with the duration of the work performed. Upon application of piece forms and labour payment systems the basic salary should correspond to 100 percent implementation of the work standards established.

(2) Basic salary or parts thereof may not be replaced by additional or other types of remuneration or payments under collective or individual employment contracts.

(3) Basic salary shall be determined on the grounds of assessment and ranking of the workplaces and positions and agreed in the employment contract between the parties to employment legal relation.

(4) Upon assessment of the workplace the following shall be taken into account:

1. the complexity of work;

2. the responsibility at work;

3. the burden of labour;

4. work environment parameters.

 

Art. 5. (1) The size and / or mechanisms to form a basic salary shall be negotiated in a collective agreement and/or by the parties to individual employment relation and shall be included in the internal salary rules of the undertaking.

(2) Starting basic salaries by occupations and positions may also be agreed upon in a collective employment contract.

(3) The maximum amounts and/or range of basic salaries by position levels at state budget institutions and operations shall be set out by a statutory instrument.

 

Section III.
Additional remuneration

Art. 6. (1) Additional remuneration shall be:

1. the one specified by the Ordinance or another statutory instrument, which must be paid out;

2. the ones agreed in an individual and/or collective employment agreement, which shall be paid according to the terms negotiated therein.

(2) Additional remuneration shall be provided in cash or in kind.

(3) Additional remuneration provided in kind may not include alcoholic beverages, health damaging drugs and tobacco products.

 

Chapter three.
TYPES OF ADDITIONAL REMUNERATION

Art. 7. Overtime work shall be paid as an increase in the minimum amounts pursuant to Art. 262 of the Labour Code. The increase shall be calculated on the grounds of basic salary and additional remuneration of permanent nature of the worker or employee under the individual employment agreement, unless otherwise agreed.

 

Art. 8. (Amend. - SG 66/20, in force from 01.01.2021) Additional remuneration shall be paid out for each night work hour or parts thereof worked off from 22,00 pm to 6,00 am by workers and employees in the amount of not less than 0.15 per cent of the minimum wage established for the country, but not less than one lev.

 

Art. 9. (1) In case shiftworking time is reported on a daily basis, the duration of night working hours being less than the daily one, the remuneration earned by work standards, shall be increased by a coefficient equal to the ratio between the normal duration of day and night working time.

(2) In those cases where a summarized calculation of working time is carried out, night hours shall be converted into daily ones by a coefficient equal to the ratio between the normal duration of day and night working time, established for reporting working time on a daily basis for the respective workplace.

(3) In the event of summarized calculation of working hours, the remuneration earned according to the work standards shall be increased by a coefficient equal to the ratio between the hours, resulting after the conversion of night working hours into daily ones and the working hours which have actually been worked off during the month or other set period of time.

 

Art. 10. Additional remuneration shall be paid for each hour or parts thereof during which a worker or employee is available to the employer outside the territory of the enterprise at a location agreed upon between them, amounting to not less than BGN 0,10.

 

Art. 11. (1) Additional monthly remuneration shall be paid to workers and employees who have educational and academic degree "Ph.D" or academic degree "Doctor of Sciences" that is related to their job, the minimum amount of which shall be:

1. BGN fifteen - for "Ph.D" degree;

2. BGN fifty - for "Doctor of Sciences" degree.

(2) In those cases where a person has more than one degree under para 1, they shall be entitled to the more favourable additional remuneration.

 

Art. 12. (1) Additional monthly remuneration shall be paid to workers and employees for length of service and professional experience in a percentage of the basic salary, determined by the individual employment contract.

(2) As length of service and professional experience shall be regarded the experience, acknowledged pursuant to the Labour Code as the period of time during which the worker or employee has worked and still works at the enterprise, including in different workplaces and on various positions.

(3) At calculation of the additional remuneration under para 1 in the cases referred to in Art. 123 and 123a of the Labour Code the period of time during which the worker or employee has worked at the enterprise prior to the change of employer shall also be taken into account.

(4) (amend. - SG 11/08) At calculation of the additional remuneration for length of service and professional experience the employer shall also take into account the following:

1. the length of service of the worker or employee in another enterprise within the meaning of § 1, item 2 of the Additional Provisions of the Labour Code on the same or similar position or occupation or such of the same nature;

2. (amend. - SG 10/09, amend. - SG 67/09) the period of time during which the persons have been carrying out work activity and/or practicing profession which is the same or similar to the work under the concluded employment contract, and have been obligatorily insured for general disease and maternity, disability due to general disease, old age and death, accident at work and occupational disease and unemployment or disability due to general disease, old age and death, general disease and maternity;

3. the length of service obtained in another Member State on the same or similar job, position or profession or such of the same nature by workers or employees who are Bulgarian citizens or nationals of any Member State, as well as their family members, provided that the said length of service is acknowledged as such pursuant to the legislation of the respective state;

4. (amend. - SG 10/09, amend. - SG 67/09) the period of time during which Bulgarian citizens, nationals of another Member State or their family members have been carrying out work activity and/or practicing profession on the territory of the Member States, the activity and/or profession being the same or similar to the job under the employment contract concluded in the Republic of Bulgaria, and have obligatorily been insured for general disease and maternity, disability due to general disease, old age and death, accident at work and occupational disease and unemployment or disability due to general disease, old age and death, general disease and maternity pursuant to the legislation of the respective Member States;

(5) (suppl. - SG 56/07, in force from 01.07.2007) The terms under which the similar nature of work, position and profession under para 4 is considered as such shall be specified by a collective employment agreement at a branch level or by the internal salary rules at the enterprise.

(6) The minimum amount of the additional remuneration for length of service and professional experience shall be determined by the Council of Ministers following consultations with representatives of organizations of workers and employees and the ones of employers at a national level.

(7) The minimum amount of the additional remuneration for length of service and professional experience in a given branch shall be determined by a collective employment agreement at a branch level, while the exact amount shall be specified in a collective employment contract and/or in the internal salary rules of the enterprise and in the individual employment agreement.

(8) Additional remunerations for length of service and professional experience shall be paid for the time during which the worker or employee has actually worked within the frames of the monthly duration of working hours under the main employment relationship, and in case of part-time – under each employment contract till the respective monthly duration is of working hours is reached.

(9) (new – SG 56/07, in force from 01.07.2007) The right to additional remuneration for length of service and professional experience shall arise when the person has a minimum of one year of length of service and professional experience

(10) (new – SG 56/07, in force from 01.07.2007) The amount of additional remuneration for length of service and professional experience shall be amended in periods of time of minimum a year of length of service and professional experience.

 

Art. 13. (1) By a collective employment contract, internal salary rules and/or individual employment agreement may also be established other additional remunerations for:

1. achieved results of work – current, annual or for another set period;

2. changes in working conditions of a temporary nature, which lead to further neuro-psychological stress and other conditions harmful to health of workers;

3. share in profits;

4. other.

(2) The terms for receiving additional remuneration and the amounts thereof shall be established by the contracts and internal rules referred to in para 1.

 

Art. 14. Higher levels of the additional labour remunerations specified by the present Ordinance may be determined by a collective employment contract, internal salary rules or individual employment contract.

 

Art. 15. (1) (prev. text of Art. 15 - SG 83/07, in force from 01.07.2007) The additional labour remunerations under Art. 11 and 12 shall be of a permanent nature.

(2) (new - SG 83/07, in force from 01.07.2007) Additional remunerations which are regularly paid along with the basic salary due for the respective period and depend solely on the working hours spent shall also be deemed as additional remuneration of a permanent nature.

 

Chapter four.
CALCULATION OF REMUNERATION DUE

Art. 16. (1) Monthly basic salary shall be calculated in compliance with the applied payment systems and the clauses of the individual employment contract.

(2) Upon calculation of gross salary of workers and employees the following shall be taken into account:

1. basic salary;

2. the remuneration over basic salary, determined according to the work payment systems applied;

3. additional pay determined pursuant to the ordinance as well as the remuneration paid out under Art. 259 of the Labour Code;

4. the remuneration under Art. 266, para 1 of the Labour Code;

5. the remuneration in case of stay or due to production necessity paid out pursuant to Art. 267, para 1 and 3 of the Labour Code;

6. the remuneration under Art. 268, paras 2 and 3 of the Labour Code;

7. the remuneration for paid annual leave.

(3) Calculation of gross salary shall be carried out on a monthly basis or in shorter periods of time set out in a collective or individual employment contract or determined by internal rules of the employer.

 

Art. 17. (1) In order to calculate the remuneration for paid annual leave under Art. 177 or the compensation under Art. 228 of the Labour Code, in the gross remuneration shall be included the following:

1. gross salary for the hours worked off;

2. the remuneration over basic salary, established according to the work payment systems applied;

3. additional remunerations set out by the Ordinance, another statutory instrument, collective or individual employment contract or by internal rules of the employer of permanent nature;

4. the additional remuneration in case of internal substitution under Art. 259 of the Labour Code;

5. the remuneration pursuant to Art. 266, para 1 of the Labour Code;

6. the remuneration, paid in case of stay or production necessity under Art. 267, para 1 and 3 of the Labour Code;

7. the remuneration under Art. 268, para 2 and 3 of the Labour Code.

(2) In order to calculate the remuneration for paid annual leave under Art. 177 of the Labour Code, in the gross remuneration shall be included the respective proportionate share of the additional periodical or annual remuneration rewarded after the use of paid leave, provided that the remuneration rewarded for paid leave are recalculated.

 

Art. 18. (1) (amend. - SG 10/09, amend. - SG 67/09) The average daily gross remuneration under Art. 177, para 1 of the Labour Code shall be established by dividing the gross labour remuneration calculated at the same employer for the last calendar month preceding the use of the leave during which the worker or employee has worked off at least 10 days into the number of worked off days in this month. The average daily gross remuneration under Art. 177, para 2 of the Labour Code shall be established by dividing the basic and additional remunerations of permanent nature set out in the employment agreement into the average monthly number of days during the relevant calendar year.

(2) (amend. - SG 83/07, in force from 01.07.2007; suppl. - SG 10/09, amend. - SG 67/09) In case of fixed monthly amount of the labour remuneration, the average daily gross remuneration established under para 1 shall be corrected by a coefficient obtained from the ratio of the number of working days per month, deemed as a base, and the number of working days of the month in which the leave is used.

(3) In the event of summarized calculation of working hours, the number of worked off days shall be established by dividing these worked off days, after converting night working hours into daily ones, into the daily duration of working time, the said duration being set for the workplace under reporting of working hours on a daily basis.

 

Art. 19. (1) In those cases where a worker or employee has worked off a full working month, the gross remuneration under Art. 228 of the Labour Code shall be established by multiplying the average daily gross remuneration by the number of working days in the same month.

(2) At calculation of paid annual leave and the compensations pursuant to the Labour Code, the amount of the average daily gross remuneration in case of full-time work may not be less than the one calculated at occurrence of the respective ground on the basis of the size of the minimum salary in the state.

 

Art. 20. Apart from the cases under Art. 177 и 228 of the Labour Code, the gross remuneration shall include basic salary and additional remunerations of permanent nature, set out by individual employment agreement, unless otherwise provided in the Labour Code.

 

Art. 21. (1) (Prev. text of Art. 21 - SG 83/07, in force from 01.07.2007) Where by the initial date of paid leave or thereafter the basic salary of the worker has been increased for a past period, which includes the month used as a basis for calculation of the remuneration for paid leave under Art. 177 the Labour Code, a bonus shall be paid together with the said remuneration, calculated by the percent for increase of the new and previous gross remuneration, established for the employment relationship.

(2) (new - SG 83/07, in force from 01.07.2007) Where, by virtue of a statutory instrument by the Council of Ministers, a collective employment contract or internal rules of the employer salaries are increased, however by that date or thereafter a worker or employee is in paid leave and therefore the increase is not reflected in the basis used for calculation of the remuneration for paid annual leave pursuant to Art. 177 the Labour Code, a bonus shall be paid together with the said remuneration, calculated by the percent for increase of the new and previous gross remuneration, established for the employment relationship.

 

Chapter five.
ORGANIZATION OF SALARY

Art. 22. (1) Organization of salary at undertakings shall be regulated by internal salary rules, which are internal rules of the undertaking within the meaning of Art. 37 of the Labour Code.

(2) Internal salary rules shall be endorsed by the employer and may not contradict the statutory instruments and the terms agreed upon in the collective employment contract.

(3) Internal salary rules should include the following:

1. general provisions regarding the organization of salaries at the enterprise;

2. determination and allocation of funds for salaries;

3. laying down minimum amounts ??or ranges of basic salaries for level positions;

4. procedure and manner for the determination and amendment of the additional remuneration.

(4) The internal salary may also include:

1. systems and methods for assessment of workplaces and positions;

2. grouping positions by position levels and qualification and educational standards;

3. rules and procedures to determine and change basic salaries;

4. work performance appraisal rules and procedures;

5. labour payment systems;

6. rules and procedures to determine individual salaries;

7. the procedure for collecting, processing, storing and use of information and documents, required for calculation of gross and net labour remunerations due

8. procedure and manner of payment of salaries.

 

Concluding provisions

§ 1. As regards to workers and employees who, by the entry into force of the Ordinance are in employment legal relations with the same employer as well as in the cases of change of the employer under Art. 123 and 123a of the Labour Code, the amount of the additional remuneration for length of service and professional experience, determined pursuant to the Ordinance, may not be less than the additional pay for continuous work, calculated as a percentage and received in amount and pursuant to the repealed Ordinance for Additional and Other Labour Remunerations, adopted by Decree No 133 of the Council of Ministers from 1993 (prom., SG 67/93;).

 

§ 2. The present ordinance is issued on the grounds of Art. 244, item 2 and Art. 261 of the Labour Code and § 121 Of the Act Amending and Supplementing the Labour Code (SG 25/01).

 

§ 3. General Labour Inspectorate Executive Agency shall supervise the implementation of the Ordinance.

 

§ 4. The Minister of Labour and Social Policy shall give instructions on implementation of the Ordinance.

 

Concluding provisions
TO DECREE NO 147 OF JUNE 29, 2007 FOR DETERMINATION OF MINIMUM AMOUNT OF ADDITIONAL REMUNERATION FOR LENGTH OF SERVICE AND PROFESSIONAL EXPERIENCE

(PROM. - SG 56/07, IN FORCE FROM 01.07.2007)

 

§ 3. The Decree shall enter into force from July 1, 2007.

 

Concluding provisions
TO DECREE NO 241 OF OCTOBER 8, 2007 FOR AMENDMENT AND SUPPLEMENTATION OF THE ORDINANCE ON SALARY STRUCTURE AND ORGANIZATION

(PROM. - SG 83/07, IN FORCE FROM 01.07.2007)

 

§ 4. Everywhere in the ordinance the words "the internal rules for salary organization" and "internal rules for salary organization" shall be respectively replaced by "the internal salary rules" and " the internal salary rules".

 

§ 5. The Decree shall enter into force from July 1, 2007.

 

Additional provisions
TO DECREE NO 9 OF JANUARY 25, 2008 FOR AMENDMENT AND SUPPLEMENTATION OF THE ORDINANCE ON SALARY STRUCTURE AND ORGANIZATION

(PROM. – SG 11/08)

 

§ 2. (1) Length of service and pensionable service of the persons referred to in Art. 12, para 4, item 3 and 4 shall be established by an employment agreement and/or other papers issued by the employer, insurer and/or the competent social service authority in compliance with the legislation of the relevant state.

(2) Dependent on the state of origin, the papers shall be drawn up pursuant to the provisions of bilateral or multilateral international treaties to which the Republic of Bulgaria is a party or of the Rules for legalization, Validation and Translation of Documents and other Papers, endorsed by Decree No 184 of the Council of Ministers from the year 1958 (prom. – SG 73/58).

 

§ 3. Within the meaning of the Ordinance:

1. "Their family members" shall be:

a) the persons who are married to or who are in factual cohabitation with a national of another Member State;

б) relatives in the descending line of a national of another Member State, who have not reached 21 years of age or for whom the said national provides for or who are legal successors of the spouse;

в) relatives in the ascending line for whom the national of another Member State or the spouse provides for.

2. "Member State" means any Member State of the European Union, the European Economic Area and Switzerland.

 

Transitional and concluding provisions
TO DECREE NO 314 OF NOVEMBER 23, 2011 ON ADOPTION OF STATUTORY INSTRUMENTS FOR THE IMPLEMENTATION OF THE STATE SERVANTS ACT

(PROM. - SG 95/11, IN FORCE FROM 15.03.2012, AMEND. - SG 106/11, IN FORCE FROM 01.01.2011)

 

§ 6. (amend. - SG 106/11, in force from 01.01.2012) The Decree shall enter into force from March 15, 2012.

 

Concluding provisions
TO DECREE NO 367 OF DECEMBER 29, 2011 ON THE IMPLEMENTATION OF THE STATE BUDGET OF THE REPUBLIC OF BULGARIA FOR THE YEAR 2012

(PROM. - SG 106/11, IN FORCE FROM 01.01.2012)

 

§ 13. The Decree shall enter into force from January 1, 2012.

 

Concluding provisions
TO DECREE NO 56 OF MARCH 8, 2012 FOR AMENDMENT OF STATUTORY INSTRUMENTS OF THE COUNCIL OF MINISTERS

(PROM. - SG 21/12, IN FORCE FROM 15.03.2012)

 

§ 4. The Decree shall enter into force from March 15, 2012.

 

Transitional and concluding provisions
TO DECREE â„– 129 OF 26 JUNE 2012

(PROM. -SG 49/12, IN FORCE FROM 01.07.2012)

§ 18. The Decree shall enter into force on 1 July 2012.

Transitional and concluding provisions
TO THE DECREE â„– 156 OF 21 JULY 2020 AMENDING THE ORDINANCE ON SALARY STRUCTURE AND ORGANIZATION ADOPTED BY DECREE â„– 4 OF THE COUNCIL OF MINISTERS OF 2007

(PROM. - SG 66/20, IN FORCE FROM 01.01.2021)

§ 3. The decree shall enter into force on 1 of January 2021.

Last edited: 02.02.2021