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Payroll in Bulgaria

Payroll in Bulgaria

Payroll services in Bulgaria can be offered by one of our specialists for business owners in this country. There are several procedures through which the salaries are calculated and distributed in the firm, and in the following lines you can read important information on this topic, mentioning that you can rely on the support provided by our accountants in Bulgaria who have experience in payroll in Bulgaria.

Salary details in Bulgaria

The minimum wage in Bulgaria is set at around EUR 399, according to the 2023 data and changes. It is important to note that the income obtained by individuals in Bulgaria is subject to taxation as follows:

  • • 4.8% for health insurance fund,
  • • 8.22% for state pension fund,
  • • 2.8% for additional mandatory pension insurance,
  • • 2.1% for general illness and maternity fund,
  • • 0.4% – 1.1% accident at work and occupational disease fund,
  • • 0.6% for unemployment fund.

As for the social contributions paid by the employer, the following apply:

  • • 6.58% for state pension fund,
  • • 2.2% for additional mandatory pension insurance,
  • • 1.4% for general illness and maternity fund,
  • • 0.4% for unemployment fund,
  • • 3.2% for health insurance fund.

Registration for the payment of taxes in Bulgaria for a newly established company can be done with the help of our specialists in the field. Moreover, our local agents can manage all the formalities related to the necessary licenses and permits to properly start a company. In addition, you can request accounting services and benefit from help for payroll in Bulgaria.

Payroll services in Bulgaria

Every company needs specialized services and experts in the field of payroll. Everything related to calculating and paying salaries in a company can be successfully managed by our specialists in this field. Here are broadly what payroll means in Bulgaria:

  • • Using relevant information related to calculating salaries in a company.
  • • The bonuses and benefits offered will be calculated before paying the salaries in the company.
  • • Wage taxes are considered when making salary calculations for a company.
  • • The payment of salaries is made according to the established terms if such services are outsourced.

These are some of the payroll services in Bulgaria. For more information, you can contact our specialists with experience in this field. We are here to help you from the beginning if you want to invest in Bulgaria and set up a company.

Employment procedures in Bulgaria

Employing companies must draw up employment contracts for the people they want to hire in the company, and the registration of this document with the relevant authorities should happen within a maximum of 3 days. Here is some important information that should be found in an employment contract in Bulgaria:

  • • Details about the company, as well as the activities of the new employee.
  • • Working hours, respectively 40 per week, according to the legislation.
  • • The obligation to pay overtime.
  • • Information about working conditions, in the office or outside it.
  • • The trial period for a new employee is up to 6 months.
  • • In Bulgaria, according to the Labor Code, workers have the right to 20 days of paid annual leave, and this must be stipulated in the employment contract.
  • • In the case of medical or sick leave, the first 3 days are paid by the state, in the proportion of 70% of the gross salary.
  • • Maternity leave is 410 days in Bulgaria, and compensation is 90% of the salary and paid by the state.
  • • The contract must also include information about the situations in which it can be concluded, with prior notice.

Those interested in payroll in Bulgaria can discuss all aspects with our specialists. We are here to offer you all the necessary support for the company you own in Bulgaria.

Termination of a Bulgarian work contract

In the case of employees of a company, the termination of the employment contract is done with prior notification, either from the employee’s side or from the employer’s side. There is the possibility to announce this even 6 months in advance if the respective employment contract allows this. With the termination of the employment contract, the employing company must provide the documents certifying that all social contributions have been paid, as well as the vacation days that were not taken by the employee.

We mention that an employment contract in Bulgaria can be concluded with the consent of both parties or when one of the parties decides that the collaboration can no longer exist. In the case of the employer, he/she can apply for dismissal.

What is statutory reporting in Bulgaria?

Our specialists in accounting and payroll can also deal with reporting to the Bulgarian financial authorities. There are a number of documents that must be registered with the relevant institutions, according to the laws in Bulgaria. Our specialists are in contact with the Labor Office, but also with institutions that deal with the collection of social contributions and relevant taxes. Instead of setting up an entire department to deal with payment of wages in the company, it is better to choose the payroll services in Bulgaria, offered by our experts, at advantageous costs.

Do you want to open a startup in Bulgaria? You can contact our local agents and discuss all the aspects that interest you. Our specialists can prepare the documents required by the authorities, and among them, the Articles of Association are the most important. Depending on the activities you want to develop, you will need a business license, but all the formalities can be explained to you by our agents.

Why outsource payroll services in Bulgaria

Payroll services in Bulgaria are very important for a company registered in this country. With the help of dedicated services, salaries can be calculated and distributed in the firm, according to employment contracts and internal regulations. Even if you want to establish an accounting department in the company, it would be advisable to consider outsourcing payroll services in Bulgaria

You will understand that the costs related to these services are much more advantageous compared to those dedicated to a department in this sense. In addition, you will have the guarantee that you are working with a team of professionals, who will be at your disposal with comprehensive information. Therefore, if you want more information about payroll in Bulgaria and the outsourcing of these services, we recommend that you talk to our experts in the field.

Making investments in Bulgaria

Bulgaria continues to attract the interest of foreign investors who want to generate large profits in this part of Europe. The country offers a stable and strong business climate, and here the booming economy also helps. Many entrepreneurs discovered a real business destination in Bulgaria, and most foreign investments are absorbed by the country’s capital, Sofia. Here are some advantages offered by Bulgaria to those who want to make investments:

  • • The real estate field is an attractive one, either for the establishment of construction companies or for those who want to deal with the sale and rental of properties.
  • • Tourism brings substantial income to Bulgaria. Foreign investments can already be seen in developed resorts, but there are many business opportunities on the coast of the country.
  • • Bulgaria’s tax system is one of the most attractive in Europe, with a corporate income tax of 10%, the lowest rate in the European Union.
  • • About USD 52 billion was the total FDI in Bulgaria in 2019.
  • • In terms of simplifying business formalities, Bulgaria ranked 61st out of 190 world economies, according to the 2020 Doing Business report.
  • • Austria, the Netherlands, Italy, and Germany are the main investors in Bulgaria.

Why work with our specialists

In addition to our local agents who can handle everything related to setting up a company in Bulgaria, you can also call on our accountants who can provide payroll services in Bulgaria. The experience in the field speaks for itself when we work with our clients because we rely on professionalism, efficiency, and confidentiality.

So, if you want to know more about payroll services in Bulgaria, do not hesitate to contact our team of company formation specialists in Bulgaria. We can also help international entrepreneurs with starting a company in Bulgaria.