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If you are interested in hiring a remote team in Bulgaria, or even just individual remote employees in Bulgaria, then you have come to the right place!
Rivermate is an Employer of Record (EOR) that offers Bulgaria payroll solutions. As a Bulgaria payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Bulgaria. We are confident Rivermate’s payroll solutions Bulgaria will help you grow as a business—because now, you won’t have to worry about your payroll solutions Bulgaria. We take care of everything payroll!
With Rivermate, you can run Bulgaria payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.
Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!
Once you've determined the best Bulgaria payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.
Employees and employers are both required to contribute to the National Social Security Fund. The fund provides indemnity payments to all employees, and the amount each person receives is determined by the Social Security Budget Act.
Contributions to social security include the following:
1. 24.7% to 25.4% of gross salary for basic social security
2. 5% of gross salary for pension insurance
3. 8% of gross salary for health insurance
Employers pay 60% of the above percentages, with employees covering the remaining 40%. As an employer, you must also pay 0.4 to 1.1% of gross salary for accident insurance.
Companies that wish to expand their operations globally have four different payroll options in Bulgaria. These payroll options are:
1. Internal Payroll. This payroll option is applicable for already established companies in Bulgaria. It includes devoting an entire Human Resources staff to running the company's payroll procedures.
2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.
Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.
3. Bulgaria payroll outsourcing: Outsourcing your payroll to an Employer of Record in Bulgaria, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!
Managing payroll in Bulgaria means that one must also manage a growing list of payroll components, especially in light of recent pandemic-related and labor law changes.
For example, in addition to keeping track of and reporting statutory payments and benefits, you must account for Bulgaria-specific payroll considerations such as, but not limited to:
1. Prohibition of overtime work for mothers with children under the age of six.
2. Prohibition of overtime work for people under the age of 18.
3. After at least eight months of service, full entitlement to paid annual leave is granted.
4. Increased entitlement to at least five days of paid leave per year for employees working in hazardous or unusual work environments.
5. The right to a paid annual leave of 25 days for individuals enrolled in secondary or higher education institutions.
Payroll compliance in Bulgaria generally covers basic statutory components such as compensation, social security, pensions, withholdings, and deductibles.
Payroll compliance is mandatory in Bulgaria, as it is everywhere else. Failure to comply will not only subject your company to costly, and possibly long-term, regulatory measures, but will also harm your company's reputation among current and prospective employees.
Recently proposed changes to the Bulgarian Tax and Social Security Procedures Code, for example, include a 5% penalty on taxes withheld, capped at 15,000 Bulgarian Lev (BGN), if a taxpayer applying for double tax treaty relief fails to complete all relevant requirements for such relief. In the case of repeated violations, the penalty is increased to 10% but capped at BGN 30,00.
Furthermore, cross-border taxpayers must keep an eye out for new tax reporting deadlines, which have been shifting in recent years as a result of new directives issued by the Council of the European Union and pandemic-related arrangements.
Companies that have a business presence in Bulgaria have different ways of managing payroll. However, most of the options you have for running payroll in Bulgaria are either expensive or require establishing a subsidiary in Bulgaria. The cheapest, most efficient, and most reliable payroll processing system in Bulgaria is by outsourcing payroll to Employers of Record (EOR) in Bulgaria. Rivermate is one of those Employers of Record.
At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Bulgaria. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Bulgaria. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.
Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Bulgaria.
Employer must provide employee a month's written notice prior to terminating employment. A notice term of up to three months may be specified in a business agreement.
Bulgaria's minimum monthly wage is 650 EUR for all employees, regardless of age or experience. The Council of Ministers sets the minimum wage, so employers operating in Bulgaria should be aware of any changes to the law.
A typical workweek consists of eight hours per day, five days a week.
The National Health Insurance Fund provides health insurance, and all inhabitants are required to contribute to it.
Food vouchers are widely used in Bulgaria, and they are tax-free up to BGN 60 each month. Employers will occasionally give private health insurance.