Employer of Record in Bulgaria

Businesses can only operate smoothly in Bulgaria if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Bulgaria below, to avoid any compliance issues.

Employment Contract Requirements

In Bulgaria, all employment contracts, whether temporary (1-3 years) or regular, must be in writing to be legally valid. As per the Employment Law, these contracts must include the following employment details:

• Identification of both parties
• Starting and conclusion dates (and employment duration for temporary contracts)
• Working hours and designated workplace
• Job title and responsibilities
• Basic salary (including compensation and benefits)
• Payment details
• Leave entitlements
• Notice periods for employment termination

Onboarding Process

We can help you get a new employee started in Bulgaria quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Bulgaria

In Bulgaria, the regular work week consists of 5 days, with a weekly duration of 40 hours or 8 hours per day. Employers can extend daily working hours on certain days through written orders, offsetting this by reducing hours on other days.

Overtime in Bulgaria

Overtime, as specified in employment contracts and agreements, is paid for work beyond the standard 40 hours weekly. The limit is 3 hours per day for 2 consecutive days, 6 hours weekly, 30 hours monthly, and 150 hours yearly. Compensation rates are 150% for weekdays, 175% for weekends, and 200% for public holidays.

Probation Period in Bulgaria

Permanent employees in Bulgaria are given a probationary period ranging from 3 months to a maximum of 6 months.

Fiscal Year in Bulgaria

1 January - 31 December is the 12-month accounting period that businesses in Bulgaria use for financial and tax reporting purposes.

Payroll Cycle in Bulgaria

The payroll cycle in Bulgaria is usually monthly, with employees being paid by the last working day of the month.

Minimum Wage in Bulgaria

The minimum wage for employees in Bulgaria is typically 5.58 BGN per hour, amounting to ~933 BGN per month for a typical 40 hour work week.

Bonus Payments in Bulgaria

There is no law in Bulgaria that requires 13-month salaries.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 18.92% - 19.62% on top of the employee salary in Bulgaria.

Employee Payroll Tax Contributions

In Bulgaria , the typical estimation for employee payroll contributions cost is around 13.78%.

Individual Income Tax Contributions

In Bulgara, there is a flat individual tax rate of 10%. Aside from this, employees contribute 13.78% to Social Security.

Pension in Bulgaria

Women qualify for retirement at 61 years and 8 months with 36 years of employment, while men qualify at 64 years and 4 months with 39 years of employment. Those not meeting these conditions can retire at 66 and 8 months with at least 15 years of insured employment.

In Bulgaria, work permits and visas are essential for employers hiring foreign workers. The process involves conducting labor market tests, submitting applications, and meeting specific eligibility criteria. Key visa types include the Single Residence and Work Permit, EU Blue Card, Seasonal Work Permit, and Intra-Corporate Transfer Permit. Employers must ensure compliance with Bulgarian labor laws when sponsoring foreign employees.

Mandatory Leave Entitlement in Bulgaria

The annual leave entitlement in Bulgaria is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Bulgaria

Bulgaria recognises 12 public holidays in a calendar year:

Paid Time Off in Bulgaria

In Bulgaria, the employment contract specifies a minimum of 20 days of annual paid leave after completing four months of employment.

Maternity Leave In Bulgaria

In Bulgaria, pregnant employees are granted 410 days of paid maternity leave, with 45 days before the due date and the rest after childbirth. The National Social Insurance Institution offers coverage for individuals with at least 12 months of insurance contributions, providing 90% of their average gross salary.

Paternity Leave In Bulgaria

In Bulgaria, fathers with a year of employment receive 15 days of paid paternity leave at 90% of their regular salary. Mothers can transfer unused maternity leave to fathers when the child turns 6 months old. Additionally, parents can request an additional 2 months of leave, funded by the National Social Security Institute, to care for a child under 8, without transferring maternity leave.

Sick Leave In Bulgaria

Bulgarian employees are entitled to 18 months of paid sick leave. During the first three days, the employer pays 70% of the regular salary. Starting from the fourth day, the National Social Security Fund pays 80% of the regular salary, which increases to 90% for work-related illness or injury if the employee has at least 6 months of service or Social Security contributions.

Parental Leave In Bulgaria

Parents can opt for up to 6 months of unpaid parental leave starting when the child is 2, and before the child turns 8. With mutual agreement, each parent can use up to 5 months of the other parent's leave. The leave can be taken continuously or in installments of at least 5 working days, with a 10-day notice to the employer.

Marriage Leave

Employees receive 2 days of paid leave in the event of their wedding.

Bereavement Leave

Employees are granted a 2-day leave to attend the funeral of a family member.

Care for a Sick Family Member

Employees can receive cash benefits when caring for a sick family member aged 18 or older. The benefit is 80% of their average daily gross salary or their average daily insurance income, considering Social Security contributions.

Study Leave

Employees pursuing secondary or higher education without disrupting their work can get 25 working days of Study Leave per academic year, provided the employer agrees.

Termination Process in Bulgaria

Terminating employment in Bulgaria is governed by reasons outlined in Bulgarian Labor Law, unless the employer cites a cause for immediate dismissal, such as misconduct.

Notice Period in Bulgaria

In Bulgaria, a written notice must be provided to the employee and relevant government authorities, with the following guidelines:

Severance in Bulgaria

In Bulgaria, severance pay is mandatory. The amount is contingent on the termination type. Severance pay for liquidation/redundancy/downsizing is typically 1 month's salary. At retirement, employee is entitled to 2 months' salary, or 6 months if they have been with the same employer for more than 10 years.