Euro from 2026. Ceiling on the right base. Bulgaria payroll, solved.
Bulgaria’s payroll is not a configuration exercise. From 1 January 2026 it runs in euro on a multi-fund contribution engine with a hard monthly insurable-income ceiling, occupation-based minimum insurable thresholds, a birth-year pension split, and Declaration 1 & 6 filed every month with the NRA. Most providers handle the flat 10% tax and miss the rest. Mercans delivers all of it – on a single proprietary stack with no intermediaries.
native payroll
vs nearest peer
since inception
- Currency (from 1 Jan 2026)
- Euro (EUR) · 1.95583 BGN
- Income Tax
- 10% flat
- Corporate Tax
- 10% flat
- Total Social Security
- 32.7–33.4% combined
- Employer SS Share
- 18.92–19.62%
- Employee SS Share
- 13.78%
- Max Insurable Income
- EUR 2,112/month
- Health (NHIF)
- 8% (ER 4.8% + EE 3.2%)
- Pension (DOO+UPF)
- 22% · birth-year split
- Minimum Wage
- EUR 620.20/month
- Working Week
- 40 hours
- Annual Leave
- Min 20 working days
- Notice Period
- 30 days (max 3 months)
- Declaration 1 & 6
- By 25th of next month
- Dividend Tax
- 5% final
Payroll compliance: the details that can’t be missed
Bulgaria’s regulators don’t grade on a curve. The NRA (НАП) reconciles Declaration 1 & 6 against contributions and assesses retroactively. The NSSI (НОИ) enforces minimum insurable thresholds by occupation that sit above minimum wage. The 1 January 2026 euro changeover re-denominated every base, ceiling, and payslip mid-cycle with no grace period for systems still running lev logic. None of these failures announce themselves – they accumulate silently until an audit makes them very visible.
Euro changeover – lev logic still live
From 1 January 2026 all bases, ceilings, contributions, and payslips are in euro at the irrevocable rate of 1.95583 BGN/EUR. Systems still calculating in lev, or rounding conversions incorrectly, misstate net pay and contributions on every run. The NRA holds the employer liable for correct euro reporting.
Minimum insurable income by occupation ignored
Contributions are due on at least the minimum insurable income set per occupational group – which can exceed minimum wage. Paying social security on actual salary below the occupational minimum triggers retroactive NSSI assessments plus interest, even when the employee is paid correctly under labour law.
Max insurable ceiling mis-applied
Both social security and health contributions are capped at the maximum monthly insurable income (EUR 2,112 for 2026). Applying contributions on uncapped gross over-withholds for high earners and corrupts Declaration 1; failing to cap each fund creates reconciliation errors with the NRA.
Late or mismatched Declaration 1 & 6
Declaration 1 (per-employee insurance data) and Declaration 6 (aggregate contributions due) must be filed with the NRA by the 25th of the following month and must reconcile to each other and to payment. Late or mismatched filings trigger administrative fines and block social-insurance entitlements for affected employees.
The three types of providers who struggle with Bulgaria
Global Aggregator Platforms
Aggregator platforms operate through a partner network in Bulgaria – they don’t own the entity, don’t file Declaration 1 & 6 directly, and don’t control the compliance relationship. When the euro changeover lands or insurable thresholds update, the instruction travels: platform → partner → your payroll. Each handoff introduces delay and interpretation risk.
- ×No direct NRA Declaration 1 & 6 filing – partner bureau handles it
- ×Euro changeover re-denomination partner-dependent
- ×Occupational minimum insurable thresholds unsupported
- ×Birth-year pension split typically not modelled
Large Global Payroll Incumbents
Incumbents have Bulgaria coverage – in name. In practice, their CEE coverage is often delivered through regional partners or legacy systems not built for Bulgaria’s max insurable ceiling per fund, the occupational minimum thresholds, or a clean euro changeover mid-cycle.
- ×Insurable-income ceiling per fund hardcoded – not dynamic
- ×Euro re-denomination required manual reconfiguration
- ×Occupational minimum thresholds maintained manually
- ×Long implementation timelines – Bulgaria not a core market
Local Bulgarian Firms
Local Bulgarian accounting firms know the market – but they can’t scale with you. No proprietary payroll technology platform, no HRIS integration, no multi-country consolidation, and no data security certifications that multinationals require. Fine for 10 employees. Inadequate at 100.
- ×No proprietary payroll technology – manual spreadsheet-based processing
- ×No HCM connector – Workday, SAP, Oracle feeds require custom work
- ×No data security certifications (SOC 1/2, ISO 27701, BCR)
- ×No EU consolidation – cannot report across Bulgaria + other entities
The only provider that closes every gap
Mercans is the only Bulgaria payroll provider that combines a proprietary payroll technology stack, full-time in-country compliance teams, direct NRA and NSSI relationships, and enterprise-grade data security – simultaneously, on one contract, with no intermediaries.
The only engine built for Bulgaria’s actual payroll architecture
G2N Nova™ is the world’s only API-first gross-to-net payroll engine. It natively models Bulgaria’s contribution system as distinct calculation layers – applying the EUR 2,112 monthly ceiling to each insurable fund, enforcing occupational minimum thresholds, splitting pension by birth year, withholding the 10% flat tax on the post-contribution base, and generating Declaration 1 & 6 outputs in euro. This isn’t configuration. It’s engineering.
Full-time Bulgaria team – not a partner you phone when things break
Mercans employs full-time payroll and compliance professionals in Bulgaria. They maintain active relationships with the NRA (НАП), the NSSI (НОИ), and the NHIF (НЗОК) – not through a contact directory, but through ongoing regulatory engagement. When the NRA revises the insurable ceiling, when minimum thresholds change, when the euro changeover schema lands – we know before it reaches your inbox.
The security posture multinationals require – and Bulgaria’s GDPR regime mandates
Bulgaria’s Personal Data Protection Act, implementing the EU GDPR under the supervision of the CPDP (КЗЛД), places obligations on payroll processors handling employee data (EGN national ID, salary records). Mercans holds BCR approval, ISO 27701 certification, SOC 1 & 2 certifications, and ISO 27017/27018. Zero security breaches since inception.
Where Mercans wins on every Bulgaria-specific capability
Each row is a Bulgaria-specific capability. Each cell shows native coverage as a fill bar – full = native in-platform, half = partial / manual workaround, empty = gap.
Bulgaria Capability Coverage · 10 dimensions
re-denomination · rate 1.95583
EUR 2,112 · SS + health
by occupational group
post-1959 private pillar
0.4–1.1% employer only
gross less contributions
monthly by 25th · NRA
multi-entity reporting
CPDP · EGN · cross-border
Every rate. Every cap. Every obligation.
Bulgaria payroll operates on exact numbers with hard deadlines. Mercans builds every figure below into G2N Nova™ and monitors them proactively – so you’re never discovering a rate change from a penalty notice.
Bulgaria · Rate & Compliance Dashboard
Live 2025–26Euro Adoption – Statutory Currency from 1 January 2026
Bulgaria joined the euro area on 1 January 2026 at the irrevocable rate of EUR 1 = BGN 1.95583. From that date, payroll, contribution bases, the insurable ceiling, minimum wage, and payslips are denominated in euro. A one-month dual-circulation period applied in January 2026 and dual lev/euro pricing ran to 8 August 2026. Mercans’ G2N Nova™ runs Bulgaria payroll natively in euro with exact-rate conversion.
→ EUR statutory from 1 Jan 2026 · rate 1.95583 · native euro engineInsurable Income – Ceiling and Occupational Floor
Social security and health contributions are due on insurable income between an occupational minimum and the maximum monthly insurable income of EUR 2,112 (2026). The minimum varies by occupational group and can exceed minimum wage; the maximum caps each fund. Both change annually in the State Social Security Budget Act. Mercans tracks both dynamically – not as hardcoded values.
→ Max EUR 2,112 · occupational minimums · per-fund cap logicContribution Architecture – Funds, Splits and Birth Year
Total contributions are 32.7–33.4%: pension DOO + supplementary UPF (22% incl. UPF 5%), general disease & maternity (3.5%), unemployment (1%), accident at work (0.4–1.1%, employer only), and health NHIF (8%). The employer carries 18.92–19.62% and the employee 13.78%. The pension/UPF routing depends on birth year (post-1959 employees fund a private UPF pillar).
→ DOO + UPF + GDM + unemp + accident + NHIF · ER 18.92–19.62% / EE 13.78%Filing & Tax – Declaration 1 & 6, Flat 10%
Personal income tax is a flat 10% on gross less mandatory employee contributions. Declaration 1 (per-employee insurance data) and Declaration 6 (aggregate contributions and tax) are filed monthly with the NRA by the 25th of the following month, and withheld PIT is remitted by the same date. The corporate annual return is filed between 1 March and 30 June of the following year; corporate tax is 10%.
→ Decl 1 & 6 by 25th · PIT 10% · CIT 10% · return 1 Mar–30 JunRun a Bulgaria payroll. Right here, right now.
Switch worker type. Move the slider. Social security and health contributions with the EUR 2,112 ceiling and the 10% flat tax on the post-contribution base – calculated live on 2026 statutory rates, in euro.
Bulgaria Social Contribution Calculator · Live
G2N Nova™ engineEight things only Bulgaria experts know to handle
These are the compliance details that don’t appear in standard payroll setup guides – but appear in every NRA audit, NSSI inspection, and labour dispute we’ve encountered in Bulgaria.
Euro Changeover – Everything Re-Denominated on 1 Jan 2026
Bulgaria adopted the euro on 1 January 2026 at the irrevocable rate of EUR 1 = BGN 1.95583. All salaries, contribution bases, the insurable ceiling, minimum wage, and payslips are now in euro. Dual lev/euro display ran to 8 August 2026. Conversions must use the exact rate with correct rounding – lev-era logic misstates every figure.
Maximum Insurable Income Caps Every Fund
For 2026 the maximum monthly insurable income is EUR 2,112. Both social security (DOO, UPF, GDM, unemployment, accident) and health (NHIF) contributions are calculated on income capped at this base – income above it carries no contribution. The ceiling changes annually and must be applied per fund, not as a single global cap.
Minimum Insurable Income Differs by Occupation
Contributions are due on at least the minimum monthly insurable income set per occupational group in the annual State Social Security Budget Act – which can exceed the minimum wage. Paying social security on actual salary below the occupational minimum triggers retroactive NSSI assessments even when labour-law pay is correct.
Pension Split Depends on the Employee’s Birth Year
The pension (DOO) and supplementary mandatory pension (UPF, 5%) split changes with birth year: those born after 1959 contribute part of their pension to a private UPF fund, while older employees stay fully in the state pillar. The total is the same but the fund routing differs – and Declaration 1 must reflect the correct split.
Accident-at-Work Rate Varies by Economic Activity
The Accident at Work and Occupational Diseases fund (0.4%–1.1%) is paid solely by the employer and the rate depends on the company’s primary economic activity (NACE code). Using a flat assumed rate under- or over-states employer cost; the correct rate per entity must be applied to every payroll run.
10% Flat Tax on the Post-Contribution Base
Personal income tax is a flat 10% – but the base is gross remuneration after deducting the employee’s mandatory social security and health contributions, not gross. Calculating 10% on gross over-withholds. Withheld tax is remitted to the NRA by the 25th of the following month.
Employer Pays First 3 Days, Then NSSI
For temporary incapacity, the employer pays 70% of average gross for the first 3 working days; from the 4th day the NSSI pays the benefit. The split must be tracked precisely and reported on Declaration 1 – mishandling it distorts both net pay and the NSSI reconciliation.
Declaration 1 & 6 Filed Monthly with the NRA
Declaration 1 (per-employee insurance data) and Declaration 6 (aggregate contributions and tax due) are filed monthly with the NRA by the 25th of the following month and must reconcile to each other and to payment. Withheld 10% PIT is remitted by the same date. Late or mismatched filings trigger fines.
One workforce. Two entirely different compliance tracks.
Permanent employees on full social security, health, and the flat 10% tax vs. managers/self-insured persons and fixed-term staff on distinct insurable-base rules requires two compliance frameworks running simultaneously on every pay cycle. Mercans runs both.
Parallel Compliance Engines
Full contributions from Day 1, capped at EUR 2,112. Pension DOO + UPF, general disease & maternity, unemployment, accident at work, and health NHIF – split employer 18.92–19.62% / employee 13.78% on insurable income up to the monthly ceiling.
Occupational minimum insurable income applies. Even employees paid at or near minimum wage generate contributions on at least their occupational minimum base, which can be higher. The employer bears the difference.
10% flat tax on the post-contribution base. Income tax is 10% of gross less mandatory employee contributions, withheld monthly and remitted to the NRA by the 25th of the following month.
Declaration 1 & 6 filed every month. Per-employee insurance data (Decl 1) and aggregate contributions and tax (Decl 6) are filed with the NRA by the 25th and must reconcile to payment.
Management contracts are insured separately. Directors and managers on management contracts (ДУК) are insured on a base between the occupational minimum and the EUR 2,112 ceiling, with rules distinct from standard employment contracts.
Self-insured persons set their own base within limits. Self-insured persons (СОЛ) contribute on a chosen monthly base between the minimum insurable income (EUR 550.66 for 2026) and the EUR 2,112 ceiling, reconciled annually.
Fixed-term staff carry identical rates. No reduced rates or exemptions – full pension, health, GDM, unemployment, and 10% tax apply identically. Insurable-base rules apply equally.
Misclassification is a common audit trigger. Treating de facto employment as a civil/management contract to alter the insurable base triggers retroactive NSSI assessments plus interest and fines.
Every obligation. Every authority. Mercans owns the calendar.
Bulgaria compliance runs across the NRA, NSSI, and NHIF on monthly, annual, and event-triggered cadences. Mercans’ managed payroll absorbs every filing as standard scope – you don’t track deadlines. We do.
Declaration 1 – Per-Employee Insurance Data
Per-employee social security and health insurance data filed with the NRA by the 25th of the following month. Covers insurable income, fund splits, and benefit days. Must reconcile to Declaration 6 and to payment. Late filing triggers administrative fines.
Declaration 6 – Aggregate Contributions & Tax
Aggregate declaration of social security and health contributions and withheld income tax due, filed with the NRA by the 25th of the following month. Withheld 10% PIT is remitted by the same date. Mismatches with Declaration 1 trigger reconciliation queries.
Employment Contract Registration
Employment contracts must be registered with the NRA before the employee starts work; terminations must be reported. Late or missing registration exposes the employer to fines and blocks the employee’s social-insurance record.
Annual Personal Income Tax Return (GDD-50)
The annual personal income tax return (ГДД / GDD-50) is filed by 30 April; a 5% discount applies for electronic filing and payment by 31 March. Reconciles all withheld 10% tax for the year against the monthly declarations.
Corporate Tax Return & Payment
The annual corporate income tax return is filed between 1 March and 30 June of the following year, with corporate tax at a flat 10%. Advance instalments apply during the year for larger taxpayers.
NSSI Sick-Pay & Benefit Reporting
Employer pays 70% of average gross for the first 3 working days of temporary incapacity; from the 4th day the NSSI pays. Maternity and other benefits are administered by the NSSI. Continuous tracking and Declaration 1 reporting are required.
NHIF Health Contribution Management
Mandatory health insurance (8% total – employer 4.8% / employee 3.2%) on insurable income capped at EUR 2,112 is administered by the NHIF and remitted with the monthly declarations. Coverage must be maintained continuously for every insured employee.
Severance & Final Settlement
Final settlement with statutory notice (30 days, up to 3 months by agreement) and any Labour Code indemnities – including unused leave compensation and, where applicable, severance on retirement or redundancy. Calculated on average gross remuneration.
Bulgaria is one market. Mercans covers Central & Eastern Europe.
For companies running payroll across multiple CEE states, complexity multiplies – not adds. Each country runs its own tax authority, social insurance body, and filing mandate. Mercans covers all major markets on a single platform with country-specific compliance engines running in parallel.
covered
1 contract
consolidation
EU / CEE
Every filing. Every format. Submission-ready.
Mercans generates the exact file types that the NRA, NSSI, and NHIF expect to receive – not formatted summaries that need reformatting before you can submit them.
