Payroll SaaS

Payroll Software in Bulgaria

Aligned with Bulgarian Payroll Regulations

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SEPA Payments
Standard, Statutory and Year-End Reports

Statutory Filings
Custom API Integrations

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Written by Global Payroll Team

Published on October 12, 2026

Last updated October 12, 2026

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Payroll Software in Bulgaria

Mercans Payroll Software is a trusted solution for efficient, compliant, and streamlined payroll management in Bulgaria. Designed to address the practical needs of Bulgarian payroll, our software helps employers manage payroll processing, National Revenue Agency (NRA) and National Social Security Institute (NSSI) reporting, and euro-denominated employee payments with confidence.

Mercans Payroll Software is an all-in-one native SaaS solution for complete digitalization of your payroll process. Supporting businesses across more than 160 countries, it is designed for organizations of all sizes, from single entities to global conglomerates. Its scalable architecture and seamless integration across modules enhance the user experience with an intuitive interface that is both simple and effective.

Trusted the world over

Aligned with Bulgarian Payroll Regulations

National Revenue Agency (NRA), NSSI & NHIF

Our payroll software for Bulgaria is designed in alignment with Bulgarian statutory payroll reporting requirements and employer obligations involving authorities such as the National Revenue Agency (NRA, Natsionalna agentsia za prihodite), the National Social Security Institute (NSSI, Natsionalen osiguritelen institut), and the National Health Insurance Fund (NHIF, Natsionalna zdravnoosiguritelna kasa). Built to support Bulgaria’s electronic Declaration Form 1 and Declaration Form 6 filings, the platform helps businesses manage the mandatory Article 62(3) new-hire notification, the flat 10% personal income tax, and monthly social and health insurance contributions with confidence, reducing compliance risk and supporting accurate euro salary payments following the country’s adoption of the euro on 1 January 2026.

Why Choose Mercans

Native SaaS and payroll platform
Trusted by Fortune Global 500 companies and multinationals
Manage all employment types – employees, freelancers, contractors, expats
More than 100 inbound and outbound integrations are available today
Suitable for enterprise businesses
GDPR aligned, SOC 1 & SOC 2 compliant
Supports multiple currencies
ISO 20000 & ISO 27001 Certified
Global presence and multi-country payroll capabilities
OWASP ASVS aligned

Payroll Software Modules

Mercans Payroll Software offers managers and employees a powerful and intuitive online portal designed to streamline and enhance your HR and payroll activities.

Our advanced software modules are equipped with functionality to support efficiency, compliance, and a superior user experience. Learn about them here:

Manager Self Service

Empowers managers to handle HR tasks, including approvals, performance tracking, and employee management, directly from the platform.

Employee Self Service

Provides employees with direct access to their personal information, payroll details, and other HR resources, enhancing transparency and convenience.

Employee Help Desk

Offers a centralized support system for employees to address payroll and HR-related queries, ensuring quick resolution and improved satisfaction.

Data Exchange

Facilitates seamless integration with other systems and platforms through robust data exchange capabilities, streamlining data management and reducing errors.

eDrive and Workflows

Automates and streamlines HR processes with configurable workflows and document management, improving efficiency and compliance.

Time & Attendance

Tracks employee work hours, attendance, and productivity with precision, integrating seamlessly with payroll calculations.

Leave Management

Manages various types of employee leave, including vacation, sick leave, and other absences, with automated approval workflows and accurate tracking.

Loans & Expenses

Handles employee loans and expense claims, ensuring accurate processing and integration with payroll for seamless financial management.

Features of Payroll Software in Bulgaria

Employment Contracts & the Labour Code

Our payroll software supports Bulgaria’s employment framework under the Kodeks na truda (Labour Code), including fixed-term and indefinite-term employment contracts, probationary periods of up to six months, and the mandatory Article 62(3) notification that employers must file electronically with the territorial directorate of the National Revenue Agency within three days of signing a contract and before the employee’s first working day. It can be configured to reflect position-specific pay scales, including the statutory minimum length-of-service and professional-experience allowance, helping employers manage payroll in line with each employee’s recognised work history.

SEPA Euro Salary Payments

Mercans Payroll Software for Bulgaria supports processing salary payments in euro (EUR) into employees’ local bank accounts. Following Bulgaria’s adoption of the euro on 1 January 2026 at the fixed and irrevocable rate of €1 = BGN 1.95583, and the country’s integration into the Single Euro Payments Area (SEPA), salary payments, statutory withholdings and employer remittances are processed in euro rather than the former Bulgarian lev.

You have two options:

Option1

Send generated salary payment details from Mercans Payroll Software to Mercans Gateway. The Financial Gateway will then handle the dispatch of SEPA Credit Transfer payments to Bulgarian banks in euro, supporting locally compliant processing.

Option2

Prepare and process salary and statutory contribution payments directly through your bank from within Mercans, without the need to download a separate payment file.

Mercans facilitates both options to accommodate your payment processing needs efficiently.

Payroll Reporting

Mercans Payroll Software supports accurate and timely payroll data submission for Bulgarian employer reporting obligations. It supports payslip (fish za zaplata) generation, retroactive adjustments, special pay runs, and the two linked monthly filings that make up Bulgaria’s statutory payroll reporting: Declaration Form 1 (Deklaratsia obrazets 1), which reports each employee’s insurable income and contributions, and Declaration Form 6 (Deklaratsia obrazets 6), which summarises the employer’s total withholding tax and social and health insurance liability, both submitted electronically to the National Revenue Agency.

Earnings and Deductions Calculation

Earnings: Global Payroll for Bulgaria allows you to define and manage various types of earnings. This includes base salary components, the mandatory length-of-service and professional-experience allowance (at least 0.6% of gross base salary per recognised year of service), overtime premiums, and other collectively or individually agreed allowances.
Deductions: The software also supports the definition and processing of different types of deductions. Regular deductions include the flat 10% personal income tax withholding and the employee’s share of social security and health insurance contributions, while incidental deductions include salary advances, loans, and attachments of earnings.

Taxes

Tax Calculation for Regular and Non-Regular Payments

Bulgaria applies a single flat 10% withholding tax rate to all employment income, calculated on gross remuneration after deducting the employee’s social security and health insurance contributions for the period. The same flat rate applies uniformly to regular salary, allowances, bonuses and other non-regular employment payments, with no tax brackets and no general personal allowance.

Personal Income Tax Thresholds and Rates

Bulgaria taxes employment income at a single flat rate of 10%, one of the lowest personal income tax rates in the European Union, with no progressive bands. Where an employee has only one employer during the year and declares no other income, the employer performs an annual reconciliation of the tax due under Article 49 of the Personal Income Tax Act (ZDDFL) by 31 January of the following year; otherwise, the employee must file an individual annual tax return by 30 April of the following year under Article 50 of the same Act.

Social Security and Health Insurance Contribution Rates

Bulgarian social security and health insurance contributions together total approximately 32.7% of gross insurable income up to the statutory ceiling. Social security (pension, general sickness and maternity, and unemployment insurance) totals approximately 24.7%-25.4% depending on labour category, split roughly 14.12%-14.82% payable by the employer and 10.58% payable by the employee. Health insurance contributions add a further 8%, split 4.8% employer and 3.2% employee. For 2026, the minimum monthly insurable income is aligned with the national minimum wage of €620.20, while the maximum monthly insurable income is capped at BGN 4,600 (approximately €2,352).

Length-of-Service Allowance & Annual Leave

Employees in Bulgaria are entitled to a mandatory additional remuneration for length of service and professional experience once they have completed one calendar year of recognised service, equal to at least 0.6% of gross basic monthly remuneration per year of service (employers may agree a higher percentage). Employees are also entitled to a statutory minimum of 20 working days of paid annual leave per year under the Labour Code, with unused leave generally expiring two years after the end of the calendar year in which it was due.

Tax & Social Security Reporting Deadlines

Employers must submit both Declaration Form 1 and Declaration Form 6 to the National Revenue Agency, and remit the related withholding tax and social and health insurance contributions, by the 25th day of the month following the month worked. The annual employer tax reconciliation under Article 49 of the Personal Income Tax Act is due by 31 January of the following year.

Termination Notice & Severance

The statutory notice period for termination of an indefinite-term employment contract is 30 days unless the parties have agreed a longer period, up to a maximum of 3 months; fixed-term contracts carry a 3-month notice period capped at the contract’s remaining term. On redundancy, the employee is entitled under Article 222 of the Labour Code to severance of at least one month’s gross salary (a collective agreement or individual contract may provide for a higher amount), to further compensation of up to one month’s gross remuneration for any resulting period of unemployment, and to payment for any accrued but unused annual leave.

Mercans payroll software for Bulgaria efficiently manages and processes social security and health insurance obligations. This encompasses

NRA Employer Registration

Electronic notification to the National Revenue Agency under Article 62(3) of the Labour Code within three days of signing each employment contract, and before the employee’s first working day.

Contribution Calculation

Calculation of the employee’s 10.58% social security and 3.2% health insurance contributions, and the employer’s matching 14.12%-14.82% social security and 4.8% health insurance contributions, within the applicable minimum and maximum insurable income thresholds.

NSSI Benefit Coordination

Coordination of sickness, maternity, paternity and unemployment insurance benefits administered through the National Social Security Institute.

Declaration 1 & 6 Reporting

Generation of the monthly Declaration Form 1 and Declaration Form 6 filings required to report insurable income, withholding tax and social and health insurance contributions.

Reporting

Integration of social security and health insurance obligations into Bulgaria’s electronic National Revenue Agency and NSSI reporting systems.

Mercans payroll software for Bulgaria provides comprehensive tools for managing various types of employee absences

Annual Leave

Administration of the statutory minimum of 20 working days of paid annual leave per calendar year under the Labour Code.

Public Holidays

Tracking of Bulgaria’s national public holidays observed each year.

Sick Leave

Tracking of employer-paid sick leave for the first 3 working days at 70% of average gross remuneration, with NSSI-funded sickness benefit applying from the 4th day at 80% (90% for work-related injury or occupational disease), subject to a minimum 6-month insurance record.

Maternity & Paternity Leave

Management of the statutory 410 calendar days of paid pregnancy and childbirth leave (90% of average insured income, paid by NSSI), the statutory 15-day paid paternity leave, and the subsequent paid childcare leave available until the child’s second birthday at a fixed monthly state-set benefit.

Unpaid Leave

Administration of unpaid leave entitlements under the Labour Code, including leave that counts toward recognised length of service subject to statutory limits.

Overtime Pay Calculation

Our system calculates overtime at a minimum of 150% of the normal hourly rate on working days, 175% for work on weekends, and 200% for work on official public holidays, in line with Article 262 of the Labour Code, within the statutory annual overtime limit of 150 hours (extendable to 300 hours under a collective agreement).

Bank Integration

Global Payroll for Bulgaria integrates with Bulgarian banking workflows to support secure and efficient payroll processing by automating SEPA euro payment data and minimizing errors.

Payment Files

The software generates and stores the necessary SEPA Credit Transfer payment files for Bulgarian banks, covering EUR salary payments, social and health insurance contributions, and other deductions and benefits.

Statutory Allowances

Support for the calculation and payment of the mandatory length-of-service and professional-experience allowance and any additional collectively agreed allowances.

Reporting

Generation of the Declaration 1 and Declaration 6 payment and reporting files required for National Revenue Agency and NSSI submissions.

Payroll Workflows

Streamlines payroll processes with automated workflows tailored to the needs of Bulgarian businesses, enhancing efficiency and accuracy.

Social Security & NSSI

Mercans payroll software for Bulgaria efficiently manages and processes social security and health insurance obligations. This encompasses

NRA Employer Registration

Electronic notification to the National Revenue Agency under Article 62(3) of the Labour Code within three days of signing each employment contract, and before the employee’s first working day.

Contribution Calculation

NSSI Benefit Coordination

Coordination of sickness, maternity, paternity and unemployment insurance benefits administered through the National Social Security Institute.

Declaration 1 & 6 Reporting

Generation of the monthly Declaration Form 1 and Declaration Form 6 filings required to report insurable income, withholding tax and social and health insurance contributions.

Reporting

Integration of social security and health insurance obligations into Bulgaria’s electronic National Revenue Agency and NSSI reporting systems.

Absence Management

Mercans payroll software for Bulgaria provides comprehensive tools for managing various types of employee absences

Annual Leave

Administration of the statutory minimum of 20 working days of paid annual leave per calendar year under the Labour Code.

Public Holidays

Tracking of Bulgaria’s national public holidays observed each year.

Sick Leave

Maternity & Paternity Leave

Unpaid Leave

Administration of unpaid leave entitlements under the Labour Code, including leave that counts toward recognised length of service subject to statutory limits.

Overtime, Bank and Payment

Overtime Pay Calculation

Bank Integration

Global Payroll for Bulgaria integrates with Bulgarian banking workflows to support secure and efficient payroll processing by automating SEPA euro payment data and minimizing errors.

Payment Files

Statutory Allowances

Support for the calculation and payment of the mandatory length-of-service and professional-experience allowance and any additional collectively agreed allowances.

Reporting

Generation of the Declaration 1 and Declaration 6 payment and reporting files required for National Revenue Agency and NSSI submissions.

Payroll Workflows

Streamlines payroll processes with automated workflows tailored to the needs of Bulgarian businesses, enhancing efficiency and accuracy.

Payroll Implementation

Mercans’ standard payroll implementation process for Bulgaria is designed to ensure a smooth transition to our payroll system. This process is customized to meet the specific needs of each client, with timelines and deliverables varying based on complexity, data availability, and the number of parallel runs required. Below is an overview of the key steps involved in our implementation process.

Implementation Planning

Assign resources and define roles for the project. Conduct a kick-off meeting to outline objectives and confirm scope. Develop a detailed implementation calendar and plan. Provide a welcome package with project details and contacts. Schedule weekly update calls or emails to monitor progress. Obtain sign-off on the project scope.

Requirements Gathering

Hold workshops to understand client needs and document them. Complete business blueprinting to detail requirements and perform a gap analysis. Define and document any customization needs, including applicable pay scales and allowance structures. Obtain sign-off on requirements to ensure they meet client expectations. Establish a comprehensive list of payroll-specific requirements.

System Configuration

Set up configurations tailored to Bulgarian payroll requirements. Customize the wage type catalog for relevant pay components, including the mandatory length-of-service and professional-experience allowance. Configure data dictionaries and necessary interfaces for Declaration 1 and Declaration 6 data integration. Adapt reports to meet Bulgarian regulatory standards. Set up Employee Self-Service (ESS) and Manager Self-Service (MSS) features.

Data Migration

Migrate employee and payroll master data and confirm its accuracy. Obtain sign-off on the migrated data to ensure correctness. Verify data integrity and completeness before proceeding with further steps.

Test Payroll Run

Run simulation payrolls to validate system configurations and perform parallel runs with existing systems. Complete test run sign-offs to confirm accuracy and execute end-to-end testing. Conduct user acceptance testing (UAT) and address any issues found.

Payroll Management Transition & Sign-off

Develop a transition plan for moving to live payroll and provide training for users. Implement a hypercare plan for post-go-live support and an escalation plan for critical issues. Create a fallback plan for potential disruptions and complete a go-live checklist for final sign-off.

Payroll Integration

Mercans Global stands out with its extensive reach and robust integration capabilities. Operating across more than 160 countries, Mercans supports connections with payroll, tax, HR, finance, banking, and compliance ecosystems to help employers maintain efficient payroll operations in Bulgaria.

Recognised Trust Sources

National Revenue Agency (NRA), NSSI & NHIF

Mercans’ integration capabilities are designed to support Bulgarian payroll reporting processes and secure data exchange with connected systems, reflecting our commitment to global standards and best practices.

Integration with HCM/ HRMS/ Workforce management platforms

Mercans’ Payroll Software integrates seamlessly with most HCM and payroll software, creating a unified experience between HR administration and payroll processing. Through the Employee Self Service (ESS) feature, employees can directly handle their payroll tasks, such as submitting worked hours or declarations. Once approved, these entries are processed within the payroll system. This efficient integration reduces errors and enhances productivity for both employees and HR administrators.

Custom API Integrations

Mercans provides custom API integrations across diverse industries, including hospitality, catering, theme parks, transport, sports, construction, healthcare, events, promotional sectors, greenhouse horticulture, and fresh produce.

Xero Integration

Integrate Mercans payroll with Xero to sync data, automate HR tasks, and streamline processes. Save time, reduce errors, and focus more on growing your business.

Payroll Reports – Standard, Statutory and Year-End Reports

Mercans’ payroll software is equipped to generate a comprehensive range of reports to support both standard and statutory requirements. These reports provide transparency, accuracy, and ease of integration with financial and regulatory systems.

Mercans Standard Reports

Report	Description
Gross to Net Report	Details employee earnings, taxable wages, employee deductions, employer costs and net pay for each payroll run in Bulgaria.
Payslip (Fish za Zaplata)	Generates individual payslips showing gross pay, allowances, deductions, social and health insurance withholding, and net pay.
Payroll Register	Provides the employee payroll register used to support Bulgarian payroll administration and social security calculations.
Declaration Form 1 Individual Report	Produces the per-employee insurable income and contribution data required for Bulgaria’s monthly Declaration Form 1 filing.
Annual Payroll Summary	Generates the annual payroll summary for each employee, summarizing total compensation, statutory deductions and other year-end totals.
Bank Payment File (EUR/SEPA)	Creates a SEPA Credit Transfer-compatible EUR salary payment file according to client or bank specifications for payroll disbursement.

Statutory Standard Reports

Report	Frequency	Description
Declaration Form 1 (Insurable Income & Contributions)	Monthly (by the 25th of the following month)	Statutory declaration of each employee’s insurable income, withholding tax and social and health insurance contributions to the National Revenue Agency.
Declaration Form 6 (Withholding Tax & Contributions Summary)	Monthly (by the 25th of the following month)	Statutory summary declaration and payment of total withholding tax and social and health insurance contributions due for the month.
Annual Personal Income Tax Reconciliation (Art. 49 ZDDFL)	Annually (by 31 January)	Statutory annual reconciliation of each employee’s personal income tax, performed by the employer where the employee has no other income or employers.

Year-End Reports

Report	Frequency	Description
Annual Payroll Summary	Annually	Annual employee statement summarizing total compensation, statutory deductions and other required year-end payroll totals.

These detailed reports are designed to support statutory and regulatory requirements, helping ensure efficient payroll management and accurate compliance.

Benefits of Payroll Software

Mercans offers a powerful payroll solution that optimizes payroll administration and HR processes. Here’s how our software benefits your organization:

Streamlined Payroll Processing
Additional Key Features

No External Dependency

Manage payroll directly through our application, eliminating the need for third-party processors.

Integrated HR and Leave Management

Handle payroll, HR tasks, and employee leave requests within one platform, simplifying administrative duties.

Reduced Manual Work

Automate routine tasks to minimize errors and ensure accurate payroll processing.

Customization

Personalize workflows to meet your specific business needs, enhancing efficiency.

Time Savings

Redirect time saved from automation to more strategic activities.

Seamless Integrations

Connect effortlessly with systems and leading HR platforms like SAP Success Factors, Workday, and Oracle for a unified workflow.

Centralized Data Management

Consolidate employee data in one place for easy access, updates, and analysis.

Employee Access

Empower employees with 24/7 access to their personal files.

Mercans’ payroll software provides a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset, your people.

24/7 Access

Access payroll data anytime and from any location.

Transparent Pricing

Benefit from a fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Get expert assistance and advice to maximize the software’s benefits.

Secure Data Management

Support data protection and integrity with secure online processing and controlled backup practices.

Compliance Assurance

Stay compliant with current fiscal and employment regulations through maintained payroll rules and updates.

Mercans’ payroll software provides a comprehensive, secure, and user-friendly solution, streamlining payroll processes and allowing you to focus on your most valuable asset, your people.

Streamlined Payroll Processing

No External Dependency

Manage payroll directly through our application, eliminating the need for third-party processors.

Integrated HR and Leave Management

Handle payroll, HR tasks, and employee leave requests within one platform, simplifying administrative duties.

Reduced Manual Work

Automate routine tasks to minimize errors and ensure accurate payroll processing.

Customization

Personalize workflows to meet your specific business needs, enhancing efficiency.

Time Savings

Redirect time saved from automation to more strategic activities.

Seamless Integrations

Connect effortlessly with systems and leading HR platforms like SAP Success Factors, Workday, and Oracle for a unified workflow.

Centralized Data Management

Consolidate employee data in one place for easy access, updates, and analysis.

Employee Access

Empower employees with 24/7 access to their personal files.

Additional Key Features

24/7 Access

Access payroll data anytime and from any location.

Transparent Pricing

Benefit from a fixed monthly fee plus a per-employee charge with no hidden costs.

Dedicated Support

Get expert assistance and advice to maximize the software’s benefits.

Secure Data Management

Support data protection and integrity with secure online processing and controlled backup practices.

Compliance Assurance

Stay compliant with current fiscal and employment regulations through maintained payroll rules and updates.

This content was prepared for informational purposes only. As local laws & regulations keep on changing, please consult your tax & legal advisors.

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FAQs

What payroll functions should a SaaS platform support in Bulgaria (e.g., gross-to-net salary calculation, payslip generation, NRA and NSSI withholding, and Declaration 1/6 filings)?

Mercans payroll software for Bulgaria delivers end-to-end payroll processing including automated gross-to-net salary calculation, digital payslip (fish za zaplata) generation, monthly flat 10% personal income tax withholding, and the linked monthly Declaration Form 1 and Declaration Form 6 filings to the National Revenue Agency.

How do payroll SaaS solutions ensure compliance with Bulgarian authorities (National Revenue Agency, NSSI, NHIF) and statutory reporting obligations?

Mercans supports compliance by keeping pace with Bulgaria’s electronic Declaration 1 and Declaration 6 reporting system, the mandatory Article 62(3) new-hire notification, and accurate monthly remittance of withholding tax and social and health insurance contributions to the National Revenue Agency and the National Social Security Institute.

What employer registration and employee data are required (e.g. NRA employer registration, Article 62(3) contract notification, EGN unique citizen number) and how does payroll software assist with this?

Mercans automates onboarding by securely capturing and managing employer and employee data, including National Revenue Agency employer registration, the mandatory Article 62(3) notification of each new employment contract, filed within three days of signing and before the employee’s first working day, and each worker’s EGN (Edinen grazhdanski nomer, unique citizen number).

How does payroll software handle Bulgaria-specific components like the flat 10% income tax, the length-of-service allowance, and euro salary payments?

Mercans payroll software automatically calculates Bulgaria’s flat 10% personal income tax on gross pay net of employee social contributions, the mandatory length-of-service and professional-experience allowance of at least 0.6% of base salary per year of recognised service, and processes employee salary payments in euro via SEPA Credit Transfer, in line with Bulgaria’s adoption of the euro on 1 January 2026.

Can payroll SaaS integrate with Bulgarian HR and ERP systems and support outsourcing or Employer of Record models?

Mercans offers robust integration capabilities with leading HR and ERP systems, supporting seamless payroll, HR management, and outsourcing models including Employer of Record, for full compliance and efficiency in Bulgaria.