Payroll Services Bulgaria

Payroll Services Bulgaria - processing

Payroll Services Bulgaria for International Companies

Payroll services in Bulgaria involve outsourcing the administration of employee salaries, benefits, and statutory taxes to local experts. It ensures companies remain compliant with Bulgarian labor laws while automating mandatory tax filings to the National Revenue Agency (NRA).

The result: full compliance with Bulgarian legislation, without building an in-house accounting or payroll team.

PAYROLL BG is your local payroll partner — we take full responsibility for monthly statutory reporting to the National Revenue Agency and the National Social Security Institute (NSSI) and monitor legislative changes on an ongoing basis to ensure that your payroll is always compliant with current requirements.

Along with payroll services, we do provide a comprehensive range of business services essential for entering the Bulgarian market — company registration or registration as a foreign employer, complete accounting services, VAT registration of Bulgarian and foreign companies, and tax compliance advisory — we support international companies throughout their entire business lifecycle in Bulgaria.

Payroll processing should not be a black box.

Our clients receive accurate salary calculations and a monthly Executive Summary showing the status of all key tasks, so you always know what has been filed, what is pending, and what comes next.

Salaries. Social contributions. NRA filings. Sick leave. Contracts. All handled.

Payroll Compliance and NRA Reporting

Payroll compliance in Bulgaria requires employers to meet strict reporting obligations to the NRA, the National Social Security Institute (NSSI), and in specific cases, the Labour Inspectorate.

Missing a deadline or submitting inaccurate data may result in penalties and unnecessary administrative burden.

Every employment contract must be registered with the NRA through an Article 62 notification before the employee starts work. Any subsequent changes — salary adjustments, position changes, or amended employment conditions — must also be registered before taking effect. Employing non-EU nationals requires notification to the Labour Inspectorate.

Monthly payroll declarations must include employee income, social security contributions, health insurance contributions, and personal income tax — reconciled with payroll records and submitted within strict deadlines.

Sick leave certificates must be reported individually to the NSSI within the legally prescribed timeframe. 

Payroll Services Bulgaria: What We Handle for You

Core Payroll Processing Services

Our standard payroll service includes:

  • gross-to-net salary calculations and payroll taxes;
  • social security and personal income tax calculations;
  • employment registrations, amendments, and terminations with the NRA;
  • mandatory notifications for non-EU employees where applicable;
  • administration of sick leave, maternity, and statutory benefits;
  • bilingual digital payslips;
  • preparation of salary and tax payment files;
  • monthly reporting to the National Revenue Agency (NRA) and the National Social Security Institute (NSSI).

Managed Payroll Payment Service

For clients who prefer full payment delegation, we execute salary and statutory payments through a dedicated client sub-account. You transfer the total payroll amount in EUR, and we process payments to employees and NRA on your behalf as your Payer of Record in Bulgaria.

Monthly Payroll Executive Summary

Every month you receive an Executive Summary in English and Bulgarian confirming all statutory filings submitted during the month, upcoming and completed compliance deadlines, and any required actions from the employer.

For example, the report may notify you that an employee’s fixed-term employment contract expires next month and request confirmation whether the contract should be terminated or converted into a permanent employment agreement.

Custom payroll and HR reports are available on request to support workforce management and internal reporting requirements.

Payroll journal entries

We prepare payroll accounting files formatted for direct import into your ERP system (SAP, Microsoft Dynamics Navision, Oracle, and others).

Secure Digital Employee Records

We maintain secure digital employee records, including employment contracts, amendments, personal data, and statutory documentation. All payroll data is processed on ISO/IEC 27001-certified OVHcloud infrastructure in Germany with full GDPR compliance.

A1 Certificate for Posted Workers

We manage the full A1 certificate application process for posted workers, including document preparation, submission to NRA, and follow-up until the certificate is issued. A1 certificates confirm which country’s social security legislation applies during cross-border assignments within the EU.

Payroll Services Pricing in Bulgaria

From EUR 15 per employee per month (excluding VAT).

Employee onboarding and offboarding services start from EUR 25 per employee (one-time, excluding VAT).

The standard monthly payroll service includes payroll calculations, social security and income tax calculations, bilingual payslips, payroll reports, and statutory reporting to the NRA and NSSI. The final monthly fee depends on:

  • Total number of employees — lower per-employee rate for larger teams.
  • Payroll complexity — non-EU employees, multiple employment types, shift workers with over time, stock options for employees, health insurance premiums, garnishments and deductions or other specifics expand calculation complexity.
  • The number of monthly payroll events and reporting requirements.

Every company has different payroll requirements. Contact PAYROLL BG for a tailored proposal based on the number of employees, payroll complexity, and reporting requirements.

Payroll Services Bulgaria

Why International Companies Trust PAYROLL BG

PAYROLL BG is a business services provider specializing in company formation, employer registration, payroll, accounting, VAT registration, and tax compliance. We support international companies throughout their entire business lifecycle in Bulgaria.

Payroll Accuracy and Compliance in Bulgaria
Before we finalize payroll each month, we run internal control checks covering NRA and NSSI reporting accuracy, social security thresholds, and Labour Inspectorate deadlines. Legislative changes are reflected in your payroll before the next cycle — not after a penalty.
Audit-Ready Payroll for International Groups
With Asen Dimitrov, Certified Auditor (Reg. 0849), on the team, PAYROLL BG delivers audit-ready payroll reporting tailored to the requirements of international companies. We support group reporting, payroll reconciliations, and payroll-related audit requests from parent company finance teams and external auditors.
Reliable Operations for Growing Companies
Whether you employ 10 or 500 people, our payroll processes scale with your business. Automated payroll workflows and digital employee file management — including electronic labour records — accelerate onboarding and reduce manual processing time at every stage of the employment lifecycle.
Legal and Data Protection Framework
All engagements include a Service Level Agreement (SLA) and a GDPR Data Processing Addendum. Payroll data is hosted on OVHcloud VPS infrastructure in Germany — ISO/IEC 27001 certified, within the European Union.

Payroll Data Security and Confidentiality

Data Security Measures at PAYROLL BG

At PAYROLL BG, we protect employee payroll data through secure infrastructure, strict access controls, GDPR-compliant procedures, and contractual confidentiality obligations.

How we secure payroll information

  • Our payroll platform and data are hosted on an OVHcloud VPS in EU (Germany).
  • Access to payroll records is protected by two-factor authentication (2FA).
  • Client data is accessible only to authorized payroll specialists.
  • All payroll processing follows GDPR requirements and documented internal procedures.
  • Client documents are managed through Microsoft SharePoint (Microsoft 365), with Google Drive available when required by the client.
  • Automatic backups, anti-DDoS protection, and continuous monitoring help ensure business continuity and data availability.

Compliance and Certifications

Our infrastructure provider maintains internationally recognized security certifications, including ISO/IEC 27001, ISO/IEC 27017, ISO/IEC 27018, ISO/IEC 27701, SOC 1, SOC 2, and SOC 3.

All client engagements are covered by a GDPR Data Processing Agreement (DPA), Service Level Agreement (SLA), and confidentiality commitments.

Payroll Transition Without Disruption

Switching payroll providers does not have to disrupt your operations. We review payroll data, validate employee records, and manage the transition process to ensure continuity, accuracy, and compliance from the first payroll cycle.

Our team coordinates the transfer of payroll information, reporting requirements, and employee records to minimize risk and avoid delays.

For companies that also require accounting support, our payroll services Bulgaria team provides integrated payroll and accounting services, helping simplify communication and compliance management through a single local provider.

Why Outsource Payroll in Bulgaria?

Companies outsource payroll in Bulgaria to reduce compliance risk, ensure accurate salary calculations, simplify payroll administration, and stay fully aligned with Bulgarian labour legislation — without building in-house expertise from scratch.

Payroll Services to Non-resident Employer in Bulgaria

Hiring employees in Bulgaria without a permanent establishment is possible. As a non-resident employer, you remain responsible for Bulgarian payroll and labor obligations — including employer registration with the Bulgarian authorities. Foreign companies can hire employees in Bulgaria directly through our Employer Registration service.

But if you are considering establishing a local entity, our Company Formation service covers the full registration process — from structure planning to banking and tax setup. For a complete overview of setting up operations in Bulgaria, see our guide to doing business in Bulgaria.

Payroll Services Bulgaria: Employer Resources

In addition to payroll processing, we help our clients stay informed about developments in Bulgarian employment, social security, and tax legislation.

We publish practical articles, expert insights, and guidance on regulatory changes that may affect employers, workforce management, and employment costs in Bulgaria.

Featured resources:

EU Pay Transparency Directive 

• Bulgarian Pension Reform

Frequently Asked Questions: Payroll in Bulgaria

01. What does payroll outsourcing in Bulgaria include?

Monthly salary calculations, tax and social security filings, NRA reporting, payslip generation, sick leave and annual leave processing, and employment administration.

02. Do I need a Bulgarian company to hire employees?

No. Foreign companies can hire employees in Bulgaria directly, without setting up a local entity.
PAYROLL BG registers your company as an employer with the Bulgarian authorities, runs your monthly payroll, and handles all mandatory filings — so your team is legally employed and fully compliant from day one.

03. Can a foreign company run payroll in Bulgaria without a subsidiary?

Yes — as a registered payroll provider in Bulgaria, we help foreign companies run compliant Bulgarian payroll through employer registration with the NRA, with no subsidiary required.
We manage the entire process — from employment contracts to monthly declarations — so you stay fully compliant without a local entity.

04. What are the employer social security contributions in Bulgaria?

Total employer social security contributions in Bulgaria are approximately 18.92% of gross salary, covering pension, health insurance, and other statutory funds.
The employee contribution is approximately 13.78%. Both are calculated on the gross salary, subject to minimum and maximum social security thresholds set annually.

05. What is the maximum social security threshold?

Social security contributions in Bulgaria are calculated up to a statutory maximum monthly threshold. Income above this amount is not subject to additional social security contributions, although personal income tax continues to apply.
For 2026, the maximum social security income has been set at 2,111.64 EUR/4,130 BGN and is expected to apply across all insured employees.

06. What is the income tax rate for employees in Bulgaria?

Bulgaria applies a flat personal income tax rate of 10%, calculated on the gross salary after deducting social security contributions. This makes Bulgaria one of the most tax-efficient locations for employment in the EU.

07. How is sick leave paid in Bulgaria?

Sick leave in Bulgaria is shared between the employer and the National Social Security Institute (NSSI). For the first two working days of certified sick leave, the employer pays compensation based on the employee’s average remuneration. From the third day onward, compensation is generally paid by the NSSI, provided the employee meets the applicable social security eligibility requirements.
Sick leave certificates must be reported correctly and within statutory deadlines as part of Bulgarian payroll administration and payroll compliance procedures.

08. What payroll deadlines apply in Bulgaria?

Payroll deadlines in Bulgaria are strictly regulated. Employers must register new employment contracts with the NRA before the employee starts work. Contract amendments must be registered before taking effect. Terminations must be registered within 7 days. Monthly payroll declarations must be submitted to the NRA by the 25th of the following month. Sick leave certificates must be reported to the NSSI by the 10th of the following month. Missing deadlines may result in penalties and corrective filings.

09. What payroll reports will I receive?

Every month you receive a clear Executive Summary — a concise overview of your total payroll costs, broken down by employee. Full payroll registers and all statutory filings are handled on your behalf, with everything documented and available on request.

10. Do my employees need an A1 certificate?

If employees are temporarily working in another EU country, an A1 certificate may be required to confirm which social security system applies. PAYROLL BG handles the full application process on your behalf.

11. How much does payroll outsource cost in Bulgaria?

Payroll services in Bulgaria typically start from EUR 15 per employee per month, depending on the number of employees and payroll complexity.

12. What is included in payroll outsourcing fees?

Standard payroll fees usually include payroll calculations, payslips, tax and social security calculations, and monthly reporting to the Bulgarian authorities.

13. How quickly can you take over our payroll?

In most cases we can begin within two to three weeks of our initial review.

How We Onboard Your Payroll in Bulgaria

Running payroll in Bulgaria involves more moving parts than most international companies expect — employment registration, NRA filings, social security reporting, and ongoing labor law compliance. We handle all of it, so your HR and finance teams don’t have to.

Each client is assigned a dedicated payroll specialist who manages your account every month. If you’re setting up operations in Bulgaria or switching from your current provider, we can typically take over within two to three weeks.

secretary accepting a call for PAYROLL BG

Get in touch with our team for any questions about payroll, accounting or company setup in Bulgaria.

Contact Our Team

Working Hours