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How to Manage Payroll and Social Security Contributions in Bulgaria
If you’re hiring in Bulgaria, understanding payroll isn’t just about compliance — it’s about knowing what your employee takes home and what it actually costs your company.
✅ 1. Net Salary vs. Total Employer Cost
Let’s say you want your employee to receive 2,000 BGN net.
You’ll need to add:
- The employee’s social security and income tax (Plus your employer contributions, which are paid on top
So your total cost will be roughly 3065.03 BGN.
👉 That’s about 53.25% more than the net salary.ˆ
💡 Quick rule of thumb:
Net × 1.53 = Total Employer Cost
✅ 2. Employment File – Not Just a Contract
Many employers think signing a contract is enough — but in Bulgaria, a proper employment file includes multiple documents.
Besides the employment contract, you must prepare and keep:
- Job description
- Declarations by the employee (e.g. for personal data, absence of other employment, etc.)
- Workplace safety documents
- Notification forms for the NRA
- And others, depending on the role
These documents must be signed, stored, and made available in case of a labor inspection.
✅ 3. Monthly Responsibilities
Each month, employers must:
- Register new contracts with the National Revenue Agency (NRA) within 3 days
- Pay salaries by the end of the month
- Submit Declarations 1 and 6
- Pay social contributions and income tax by the 25th of the following month
✅ 4. Why Use an Accountant
The payroll process in Bulgaria is detailed and legally sensitive. That’s why most business owners rely on professional accountants to:
- Prepare full employment files
- Calculate payroll
- Submit reports to the NRA
- Keep everything compliant and audit-ready
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Ready to simplify payroll and stay fully compliant? Contact ASB Accounting Services Bulgaria today for expert support.