Payroll in Firmify — salaries and social insurance
What does payroll mean in Firmify?
Payroll in Firmify covers the monthly process of calculating and recording employee salaries, employer social insurance contributions, and the net pay transfers — all reflected automatically in the journal.
Key concepts
Gross salary vs net salary
- Gross salary — the full amount agreed in the employment contract before deductions.
- Net salary — what the employee actually receives after withholding personal income tax (10%) and employee social/health contributions (~13.78% for 2026).
Employer contributions
On top of the gross salary, the employer pays additional social and health contributions (~18.92% for 2026). These are a company expense on top of gross.
Insurance base
Social contributions are calculated on the insurance base — the gross salary, but not below the statutory minimum and not above the statutory maximum for the occupation.
Bulgarian rates for 2026
| Type | Employee share | Employer share |
|---|---|---|
| Pension (ДОО) | 6.72% | 9.72% |
| Supplementary pension (ДЗПО) | 2.20% | 2.80% |
| Health (НЗОК) | 3.20% | 4.80% |
| Unemployment | 0.40% | 0.60% |
| Accidents at work | — | ~0.4–1.1% (by activity) |
| Total | ~12.52% | ~17.9–18.6% |
| Income tax (ДДФЛ) | 10% of taxable income | — |
Rates change annually — always verify on the NRA website.
Step by step in Firmify
Step 1: Set up employees
Go to Accounting → Payroll → Employees and add each employee:
- Full name and EGN (personal ID)
- Position and contract type
- Gross salary
- Insurance base (if different from gross)
Step 2: Run the monthly payroll
Go to Payroll → New Payroll Run and select the month. Firmify:
- Calculates employee deductions (social + health + income tax)
- Calculates employer contributions on top
- Generates a payslip for each employee
- Creates the journal entries automatically
Step 3: Review the journal entries
The payroll run creates three standard entries:
Entry 1 — Salary accrual (recording the liability):
Debit 604 Salary expense 3 000.00
Credit 421 Staff payable 2 610.00 (net)
Credit 4539 Income tax payable 300.00
Credit 460 Social/health payable 90.00
Entry 2 — Employer contributions:
Debit 605 Social insurance expense 568.00
Credit 460 Social/health payable 568.00
Entry 3 — Net salary payment (when you transfer to employee's account):
Debit 421 Staff payable 2 610.00
Credit 503 Bank account 2 610.00
Step 4: Pay taxes and contributions
By the 25th of the following month, transfer the withheld income tax (ДДФЛ) and social contributions to the NRA. Record these bank transfers via Bank Import or manually.
Step 5: File the monthly declaration (Декларация 1 и 6)
Firmify generates the data you need. File with the NRA:
- Declaration 1 — per-employee insurance data (by the 25th)
- Declaration 6 — summary of taxes and contributions (by the 25th)
Manager social insurance (no employment contract)
If you are the sole manager of your EOOD with no employment contract, you still owe social and health contributions on the minimum manager insurance base (currently 933 BGN/month for 2026). These are paid each month by the 25th.
In Firmify go to Payroll → Manager Insurance to record and track these contributions:
Debit 605 Social insurance expense ~190.00
Credit 460 Social/health payable ~190.00
Then record the payment when you transfer to NRA.
All guides
- How to Register a Company in Bulgaria (2026 Guide)
- EOOD vs OOD in Bulgaria — Which to Choose?
- Company Registration Costs in Bulgaria (2026)
- VAT Registration in Bulgaria — When & How
- Corporate Tax in Bulgaria — 10% Flat Rate Guide
- How to Register an EOOD in Bulgaria — Full Guide
- How to Register an OOD in Bulgaria — Full Guide
- Check & Reserve a Company Name in Bulgaria
- Documents for Company Registration in Bulgaria
- Signing Documents for Company Registration — QES, Specimen, Firmify
- Signing Help — Evrotrust, PDF, B-Trust
- Sign PDF with QES Outside Firmify — Adobe Reader, Steps
- Signing with Evrotrust in Firmify — Steps
- B-Trust, Smart Card, and BISS for Signing
- Capital Escrow Account & Company Banking in Bulgaria
- Annual Financial Report (AFR) in Bulgaria — Filing & Deadlines
- Company Registration & Maintenance Costs in Bulgaria
- Online Company Registration in Bulgaria
- Dissolving an EOOD/OOD in Bulgaria — Procedure & Timeline
- Share Transfer in EOOD/OOD — Procedure & Documents
- Company Amendments in the Commercial Register (A15)
- GDPR Policy & Legal Documents for Your Business
- Employment Contract & HR Documents in Bulgaria
- How to Find an Accountant or Lawyer for Your Company in Bulgaria
- Firmify Partner Program — How to Earn
- Business Documents — Quotes, Proforma Invoices, Contracts
- Do I Need a Lawyer to Register a Company in Bulgaria?
- How Long Does Company Registration Take in Bulgaria?
- What to Do After Receiving Your EIK?
- Do I Need a Notary for Company Registration?
- EOOD vs Freelance in Bulgaria — Which Is More Profitable?
- Manager Social Insurance for EOOD — Types & Obligations
- Public procurement radar: CPV codes and your Firmify profile
- What “AI assistance” means for TED notices
- End-to-end Firmify tenders flow: TED radar, case workspace, Stripe document pack
- Paid TED document pack for Firmify tenders: Stripe, statuses, filenames
- How to find the CPV code for your business
- Requirements for participating in public procurement in Bulgaria
- Art. 97a VAT Filing in Bulgaria — Monthly Guide (2026)
- VIES Declaration in Bulgaria — Guide 2026
- How to use the Firmify accounting module
- Monthly accounting checklist for EOOD
- How to file a VAT return with Firmify
- How to record a purchase invoice in Firmify
- How to issue an invoice with Firmify
- How to close an accounting period in Firmify
- Annual financial report (GFO) with Firmify
- Accounting glossary — Bulgaria
- Can an EOOD owner do their own bookkeeping in Bulgaria?
- Bank statement import & reconciliation in Firmify
- Payroll and salaries in Firmify — EOOD guide
- Fixed assets and depreciation in Firmify
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