2. What is the difference between length of the contribution period under the Social Insurance Code and length of service under the Labour Code?

There is a difference between the concepts of length of service under the Labour Code and length of the contribution period under the Social Insurance Code (KSO).

       Length of service within the meaning of the Labour Code is the period during which the employee has worked under an employment relationship, unless otherwise provided for in the Labour Code or in any other law, as well as the period during which the person worked as a civil servant. Length of service includes also periods during which a person has worked as a civil servant or under an employment relationship under the legislation of another Member State of the European Union, in another State party to the Agreement on the European Economic Area or in the Swiss Confederation, as well as the period of occupying a post in an institution of the European Union or an international organisation of which the Republic of Bulgaria is a member, attested by an act for the establishment and termination of the employment relationship.

         In addition, it is necessary to bear in mind the provisions of Articles 352, 353 and 354 of the KT governing the following cases:

  • where a period of an employment relationship is recognised as length of service while the worker or employee has not worked;
  • where length of service is recognized under an invalid employment relationship;
  • where the period during which no employment relationship existed is recognised as length of service.

         Length of service is a legal fact giving rise to certain rights of workers or employees, such as the right to paid annual leave (Article 155(2) of the KT), to additional remuneration for length of service and professional experience (Article 12(1) of the Decree on the salary structure and organisation), compensation in the event of termination of the employment relationship by reason of illness (Article 222(2) of the KT), compensation upon termination of the employment relationship after the worker or employee has acquired entitlement to a retirement pension (Article 222(3) of the KT), i.e. this type of period of service is linked to the acquisition and exercise of certain rights under the labour law.

           The period counted as length of the contribution period is regulated in Article 9 and Article 9a of the KSO. The length of the contribution period is relevant to the employee’s social security rights as an insured person, such as cash benefits for temporary incapacity for work, occupational rehabilitation, cash benefits for unemployment, entitlement to pension, etc.

Reference: Article 351 – Article 354 of the Labour Code; Social Insurance Code.