To process monthly payroll, Bulgaria for Business VCC needs: (1) confirmation of the current month’s headcount — any joiners or leavers; (2) salary changes effective in the month; (3) sick leave records — doctor’s certificates received; (4) approved annual leave taken; (5) any overtime worked and approved; (6) any one-off payments — bonuses, allowances, compensation. We provide a simple monthly input template — most clients complete it in under 30 minutes. For stable headcount months with no changes, a single confirmation is sufficient.
Payroll & HR Administration in Bulgaria
Outsourced Payroll Processing, NRA Compliance, Social Security & HR Administration for Foreign-Owned Companies
From €30 /Employee/Month
NRA & NOI Compliant
Monthly Payslips in EN
Employer of Record
BULGARIAN PAYROLL — KEY FIGURES
€30 Outsourced payroll from — per employee/month
~18.92% Employer social security on gross salary
10% Flat income tax withheld by employer
14th Monthly NRA/NOI filing deadline
Outsourced payroll and HR administration — why foreign companies use us
Every company that employs staff in Bulgaria faces the same monthly compliance obligation: calculate payroll correctly, withhold the right amounts, file Forms 1 and 6 with the NRA by the 14th, and pay social security contributions to the NOI by the 25th. Miss a deadline, make a calculation error, or file incorrect data — and the NRA will issue a fine. For a foreign-owned company managing Bulgarian payroll from abroad, these obligations are both time-consuming and technically demanding.
Bulgaria for Business VCC provides fully outsourced payroll processing and HR administration for foreign-owned Bulgarian companies. Our payroll team speaks English, delivers payslips and reports in both English and Bulgarian, and handles every monthly compliance step — leaving you free to manage your business. From a single employee on €30/month to a team of 50+, our service scales with you.
ONE PROVIDER FOR ALL PEOPLE PROCESSES: Bulgaria for Business VCC is the only provider in Bulgaria that combines payroll processing with employment law, HR administration, recruitment, and accounting under one roof. When your payroll raises an employment law question — maternity leave entitlement, sick leave calculation, termination notice — our employment lawyers are in the same team. When payroll data needs to flow into management accounts — our accounting team handles it. No handoffs, no gaps, no explanation required between providers.
Full scope of payroll and HR services
The table below sets out the complete range of services included in the Bulgaria for Business VCC payroll and HR administration service. All services are available individually or as a combined package.
| Service element | What it covers |
|---|---|
| Monthly payroll calculation | Calculation of gross-to-net for every employee — applying income tax (10% flat), employee social security contributions (~13.78%), and any statutory deductions. Calculation of employer social security contributions (~18.92%). Output: payroll register and payslips. |
| NRA monthly filing — income tax | Mandatory monthly electronic filing of Form 1 (individual employee data) and Form 6 (aggregate employer social security and tax declarations) with the National Revenue Agency. Deadline: 14th of the following month. |
| NOI social security declarations | Monthly social security contribution declarations to the National Social Security Institute (Национален осигурителен институт — НОИ). Coordination of sick leave, maternity, and paternity benefit applications. |
| Payslip generation | Monthly payslips for every employee — in Bulgarian (statutory) and English (for international management reporting). Delivered electronically to the employer for distribution. |
| Employer cost reporting | Monthly employer cost report — showing gross salary, employer social security, total employer cost, and net employee pay for each employee and for the total payroll. Used for management accounts and group reporting. |
| Food voucher administration | Where the employer offers food vouchers — monthly voucher order, quantity management, and distribution coordination with the authorised voucher provider. |
| Employment contract management | Maintenance of the employment contract register — tracking all contracts, probation period expiry dates, fixed-term end dates, notice periods, and amendment records. |
| New hire onboarding documentation | Preparation and filing of all new hire documentation — employment contract, Form 1 NRA notification, record book (трудова книжка) entry, personal file setup, and H&S briefing documentation. |
| Termination documentation | Preparation of all termination documentation — mutual agreement, termination notice, final payroll calculation (including unused leave compensation), NRA/NOI deregistration, and record book closure. |
| Leave tracking and management | Tracking of annual leave entitlements, taken leave, and balances for all employees. Coordination of sick leave documentation and NOI sickness benefit applications. |
| HR record-keeping and personnel files | Maintenance of digital personnel files for all employees — employment documents, amendments, disciplinary records, performance documents, and all Labour Code-required records. |
| HR policy and procedure support | Drafting and updating of internal HR policies required by Bulgarian law — internal labour rules (Вътрешен правилник за трудовия ред), data protection policies, health and safety procedures, and codes of conduct. |
Bulgarian social security and income tax — the complete breakdown
Understanding the Bulgarian social security system is essential for accurately calculating the total cost of employment and employee take-home pay. The table below provides a complete breakdown of all contribution categories, rates, and relevant notes.
| Contribution type | Employer / Employee rate | Notes |
|---|---|---|
| State Pension | Employer: 9.72% | Employee: 7.9% | Contributions to the state pension fund — based on gross salary up to the social security ceiling (BGN 3,750/month in 2024) |
| Universal Pension Fund | Employer: 2.8% | Employee: 2.2% | Supplementary pension contributions for employees born after 31 December 1959 — paid in addition to the state pension contributions above |
| Health Insurance | Employer: 4.8% | Employee: 3.2% | State health insurance contributions — entitling employees to Bulgarian public health system access |
| Unemployment Insurance | Employer: 0.6% | Employee: 0.4% | Unemployment insurance — entitling employees to unemployment benefit in the event of job loss |
| Work Accident & Occupational Disease | Employer: 0.4–1.1% (sector-dependent) | Employee: 0% | Work accident insurance — rate varies by sector risk classification. Financial services and IT: 0.4%. Construction and industry: higher rates. |
| Income tax | 0% Employer | Employee: 10% of taxable income | Flat 10% income tax withheld by the employer from gross salary and remitted monthly to the NRA. Employee pays nothing separately. |
| TOTALS (illustrative — standard office sector) | Employer: ~18.92% | Employee: ~13.78% | Total employer cost above gross = ~18.92%. Employee take-home = gross minus ~13.78% SS minus 10% tax = ~76.2% of gross. |
SOCIAL SECURITY CEILING EFFECT: Bulgarian social security contributions are capped at the maximum insurable income ceiling — BGN 3,750/month gross in 2024. Employees earning above this threshold pay social security only on the first BGN 3,750, with the remainder subject only to 10% income tax. For higher-earning executives (e.g. BGN 8,000/month gross), the effective total employer cost is lower than the headline ~18.92% above gross would suggest — because employer SS is also capped. Bulgaria for Business VCC calculates this correctly for every employee each month.
Monthly payroll cycle — deadlines and process
The Bulgarian payroll cycle operates on a strict monthly calendar with mandatory NRA filing deadlines. The table below maps the complete monthly cycle — from payroll input through to salary payment and social security settlement.
| Timing | Activity |
|---|---|
| During the month | Capture all payroll-relevant events — new hires, terminations, salary changes, leave taken, sick leave received, overtime. Bulgaria for Business VCC receives input from the client via a simple monthly input template. |
| By the 5th of the following month (client deadline) | Client provides payroll input to Bulgaria for Business VCC — confirmed headcount, any changes from prior month, approved leave records, sick notes received. |
| By the 10th — payroll calculation | Bulgaria for Business VCC calculates gross-to-net for all employees, prepares payslips and employer cost report. Payroll register submitted to client for approval. |
| Client approval | Client reviews and approves payroll register. Any corrections are processed. Once approved, the payroll is locked for that month. |
| By the 14th — NRA Form 6 filing | Mandatory filing deadline for Form 6 (aggregate employer tax and SS declaration) with the NRA. Bulgaria for Business VCC files electronically and provides confirmation receipt. |
| By the 14th — NRA Form 1 filing | Form 1 (individual employee data) is filed for all employees with the NRA by the 14th of the following month. Bulgaria for Business VCC files and confirms. |
| Salary payment day (employer’s obligation) | Salary must be paid by the date specified in the employment contract — typically between the 25th and the last working day of the month. Bulgaria for Business VCC provides the bank payment file with exact net amounts per employee. |
| By the 25th — NOI contribution payment | Employer and employee social security contributions must be paid to the state by the 25th of the following month. Bulgaria for Business VCC prepares payment instructions. |
THE 14TH IS NON-NEGOTIABLE: The NRA filing deadline for Forms 1 and 6 is the 14th of the month following the payroll period. Late filing attracts automatic fines — no grace period applies. For months where the 14th falls on a weekend or public holiday, the deadline moves to the next working day. Bulgaria for Business VCC monitors filing deadlines for all clients and files on time, every month. Late filing is not acceptable and has never occurred on our watch for a managed payroll client.
Employer of Record (EoR) — hire in Bulgaria without your own company
The Employer of Record service allows foreign companies to hire Bulgarian employees before establishing their own Bulgarian company — or without ever needing to establish one. Bulgaria for Business VCC acts as the legal employer while the client directs and manages the employees operationally.
| EoR aspect | Details |
|---|---|
| What is Employer of Record (EoR)? | Under an EoR arrangement, Bulgaria for Business VCC acts as the legal employer of your Bulgarian staff — employing them under our company’s name in compliance with the Bulgarian Labour Code. You direct and manage the employees operationally; we handle all legal employer obligations — contracts, payroll, NRA filing, social security, and compliance. |
| When is EoR the right solution? | EoR is the right solution when: (1) you want to hire Bulgarian staff before your own Bulgarian company is established; (2) you want to test the market with a small team without committing to your own company structure; (3) you have a single or small number of Bulgarian employees and the overhead of your own company is disproportionate; or (4) you need to hire quickly — EoR can be activated in days rather than the weeks needed to form and register a new company. |
| What the employer (you) controls | Under the EoR model, you retain full operational control — you direct the employee’s work, set objectives, manage performance, and approve leave. The employee works for your business. Bulgaria for Business VCC handles the legal employer administrative layer only. |
| Employment contract structure | The employment contract is between the employee and Bulgaria for Business VCC as the EoR entity. The contract reflects the agreed terms — salary, role, benefits — as instructed by you. The employee is fully aware that Bulgaria for Business VCC is the legal employer and that they are performing services for your business. |
| Monthly cost structure | Monthly total EoR cost = employee gross salary + employer social security (~18.92%) + Bulgaria for Business VCC EoR service fee (from €150/employee/month). All-in, transparent monthly invoicing to you in EUR. |
| Transitioning to your own entity | When you are ready to establish your own Bulgarian company, transition from EoR is straightforward — we transfer the employment contracts to your new entity with the employees’ consent under TUPE provisions. Bulgaria for Business VCC manages the transfer process. |
EOR MONTHLY COST EXAMPLE: A client hires one Bulgarian software developer at BGN 6,000/month gross salary. Total monthly EoR cost: BGN 6,000 (gross salary) + BGN 1,135 (employer SS ~18.92%) + €150 Bulgaria for Business VCC EoR fee = approximately €3,800/month all-in. This includes all employment compliance, payroll, and HR administration. The developer takes home approximately BGN 4,573/month net (€2,340). Compare this to a developer in Western Europe at €8,000–12,000/month total cost.
Pricing — payroll and HR administration
All fees are fixed monthly charges per employee. There is no minimum term. Pricing scales with team size — the per-employee cost decreases as the team grows.
| Service | What is included | Monthly fee |
|---|---|---|
| Payroll processing — 1–5 employees | Monthly payroll calculation, NRA Form 1 & 6 filing, NOI declarations, payslips (EN + BG), employer cost report. | From €30/employee/month |
| Payroll processing — 6–20 employees | As above. Volume pricing applies from 6 employees. | From €25/employee/month |
| Payroll processing — 21–50 employees | As above. Further volume pricing. | From €20/employee/month |
| Payroll processing — 50+ employees | As above. Enterprise pricing — please enquire. | Price on application |
| HR administration retainer — up to 10 employees | Employment contract management, onboarding documentation, leave tracking, termination documentation, personnel file maintenance. | From €200/month |
| HR administration retainer — 11–30 employees | As above. Higher-volume HR admin retainer. | From €350/month |
| New hire onboarding (one-time per hire) | Employment contract preparation, Form 1 NRA filing, record book entry, H&S briefing documentation. | From €200/employee |
| Termination processing (one-time) | Mutual agreement documentation, final payroll calculation, NRA/NOI deregistration, record book closure. | From €150/employee |
| Employer of Record service | Full EoR — legal employer of record, all payroll and HR compliance obligations. Does not include the employee’s salary and social security costs. | From €150/employee/month |
| Annual payroll compliance review | End-of-year review of all payroll data, NRA reconciliation, NOI annual declaration, and employee income certificate (Служебна бележка) generation. | From €300 (up to 10 employees) |
All fees exclude Bulgarian VAT (20%). The payroll fee covers the payroll processing service only — it does not include the employee’s gross salary or employer social security contributions, which are the client’s direct cost. EoR fee covers the service only — salary and social security are passed through at cost. Volume discounts available for teams of 50+.
Frequently asked questions — payroll and HR administration
Key questions answered for international companies outsourcing payroll in Bulgaria.
Form 1 (Декларация образец 1) is the monthly NRA declaration for each individual employee — reporting their gross income, tax withheld, and social security contributions for the month. Form 6 (Декларация образец 6) is the aggregate monthly declaration by the employer — summarising total tax and social security obligations for the month. Both are filed electronically with the NRA by the 14th of the following month. Failure to file on time or filing incorrect data exposes the employer to fines. Bulgaria for Business VCC files both forms as part of the standard monthly payroll service.
Bulgarian social security contributions are calculated on gross salary up to a maximum insurable income ceiling (Максимален осигурителен доход). For 2024, the ceiling is BGN 3,750/month. Earnings above this ceiling are not subject to social security contributions — only to income tax. The ceiling is reviewed and typically adjusted annually. For high-earning executives, this means that once their monthly gross exceeds BGN 3,750, their social security contribution is capped — making the effective marginal cost of higher salary increases more favourable.
Yes. Our payroll system handles all standard Bulgarian employment arrangements — full-time, part-time, fixed-term, and open-ended employment contracts. Civil contracts (граждански договори) are processed separately — they have different withholding and social security rules depending on whether the civil contract holder is employed elsewhere. We calculate and withhold appropriately for each contract type. Note: we advise against the use of civil contracts where a genuine employment relationship exists — see our Hiring Employees page.
Bulgarian payslips (фишове за заплата) must include, at minimum: the employee’s name, the period, gross salary, all deductions itemised (income tax, employee social security by category), and net salary payable. Bulgaria for Business VCC generates payslips in both Bulgarian (statutory) and English (for international management and the employee’s own reference). Payslips are delivered electronically to the employer for distribution to employees on or before salary payment day.
Yes. When an employee submits a sick note (болничен лист), Bulgaria for Business VCC manages the full process: calculating the employer’s contribution for the first 3 days (70% of the daily average salary), submitting the sick note to NOI for the employer’s portion to be claimed back (above 3 days), and coordinating the NOI sick pay application on behalf of the employee for days 4 onwards. For maternity leave — we manage the full NOI maternity benefit application, monthly reporting, and return-to-work payroll reactivation.
Every employer must issue an annual income certificate (Служебна бележка) to every employee by 31 January of the following year — or on termination of employment, on request. This certificate summarises the employee’s total gross income for the year, income tax withheld, and social security contributions. Employees use it to complete their personal income tax declaration (if required) and for various other purposes. Bulgaria for Business VCC generates all annual income certificates as part of the end-of-year payroll service.
Our payroll service scales with your team. Adding new employees is straightforward — we receive the new hire details, onboarding input template, and signed employment contract, and the employee is added to the payroll from their start date. Volume-based pricing tiers mean the per-employee cost reduces as the team grows. If you anticipate rapid growth, we can discuss a scalable pricing arrangement at the outset. There is no minimum term — you can scale up or down the number of employees on our payroll service as your business requires.
Outsource your Bulgarian payroll today
Bulgaria for Business VCC handles all payroll calculation, NRA filing, social security, and HR administration for your Bulgarian team — in English, on time, every month.
Payroll from €30/employee/month
HR admin from €200/month
EoR from €150/employee/month
No minimum term
HR admin from €200/month
EoR from €150/employee/month
No minimum term
Bulgaria for Business VCC — Your Trusted Payroll and HR Partner in Bulgaria. Social security rates and filing deadlines are correct as of 2024–2025 and are subject to annual legislative review. This document is for general information only and does not constitute legal or tax advice.