Guides an employer or payroll processor through the full monthly Bulgarian payroll cycle: computing gross-to-net for each employee, splitting social/health contributions by fund, withholding the 10% flat PIT, filing Declaration 1 (Obrazets 1) and Declaration 6 (Obrazets 6) with the NRA, and remitting contributions plus PIT by the 25th-of-month deadline.
Collect the payroll register for the month, confirm the currency period (2025 BGN sub-period vs 2026 EUR following euro adoption on 1 Jan 2026 at BGN 1.95583 = EUR 1), and gather key per-employee data needed to compute the insurable base. Verify the employer is registered with the NRA and that the company NACE code is on file to determine the work-accident fund rate (0.4%-1.1%).
Apply the Bulgarian contribution rules to each employee to produce the exact amounts due per fund. For Category III employees (born after 31 Dec 1959): employee side 13.78% (pension 6.58%, 2nd-pillar UPF 2.2%, disease & maternity 1.4%, unemployment 0.4%, health NHIF 3.2%); employer side 18.92%-19.62% (pension 8.22%, UPF 2.8%, disease & maternity 2.1%, unemployment 0.6%, work-accident 0.4%-1.1%, health 4.8%). Compute 10% flat PIT on gross minus employee mandatory contributions. Handle the pre-1960 cohort separately (19.8% state pension split 8.78%/11.02%, no UPF).
Prepare and review Declaration 1 (Deklaratsiya Obrazets 1) for each insured employee. This per-person electronic filing reports the employee insured days, insurable income, contribution amounts by fund, and withheld PIT to the NRA. Data must match the payroll working paper exactly. File electronically via the NRA e-services portal (e.nra.bg) using the employer qualified electronic signature (KEP / QES).
Prepare Declaration 6 (Deklaratsiya Obrazets 6), which reports the employer aggregate monthly contributions by fund and the total withheld PIT for all employees. This filing is the basis for the NRA to reconcile the payment remitted on the 25th. Totals on Declaration 6 must equal the sum of all Declaration 1 filings for the same month. File electronically via e.nra.bg with the same KEP.
Execute the NRA remittance (contributions + withheld PIT) and the net salary bank transfers. Both must clear by the 25th of the month following the payroll month. Submit Declaration 1 and Declaration 6 electronically before the payment clears. Retain payment confirmations as evidence of timely compliance. Late filing attracts penalties of approximately EUR 250-500 per late declaration plus statutory interest at BNB base rate + 10 percentage points on overdue contributions.
Post the payroll entries to the accounting ledger, reconcile NRA submissions against bank statements, and file the payroll register for future audit. Employer-side contributions are a wage cost (not a VAT item); employee-side SSC and PIT are balance-sheet withholding liabilities cleared on payment. Confirm the NRA e-services account shows the declarations as accepted and no outstanding liabilities remain for the month.
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Bulgaria Social Security & Health Insurance Contributions
Use this skill whenever asked about Bulgaria social security and health insurance contribu
Bulgaria Payroll
Use this skill whenever asked about Bulgaria payroll processing for employed persons. Trig