Easily manage employment in Bulgaria

Payroll services in Bulgaria

Bulgaria has a growing economy with key industries in technology, manufacturing, and tourism. With specific labor laws and tax regulations, employers in Bulgaria must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Bulgaria

Employers in Bulgaria must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Bulgaria’s minimum wage is BGN 933 per month.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Bulgaria is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated based on labor regulations.

Taxation and social security contributions

• Personal income tax: Bulgaria has a flat income tax rate of 10%.
• Employer contributions:
• Social security: 18.92% of the gross salary.
• Health insurance: 4.8% of the gross salary.
• Employee contributions:
• Social security: 13.78% of the gross salary.
• Health insurance: 3.2% of the gross salary.
• Corporate tax: The corporate income tax rate in Bulgaria is 10%.
• Tax reporting: Employers must file payroll taxes and contributions with the Bulgarian National Revenue Agency regularly.

Payroll compliance in Bulgaria

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Employers must stay updated on changes to Bulgaria’s labor laws and tax regulations to avoid penalties.

Quick facts: Important considerations for employers

• Payroll frequency: Salaries are generally paid monthly.
• Currency: Payroll in Bulgaria is processed in Bulgarian Lev (BGN).
• Tax reporting: Employers must file payroll taxes and contributions with the Bulgarian National Revenue Agency.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Payroll compliance: Employers must stay updated on changes to tax rates and reporting requirements.

Run payroll in Bulgaria with Remote

Managing payroll in Bulgaria requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.