Skip to content

Your Guide to Hiring Employees and

Contractors in Bulgaria

Capital city

Sofia

Currency

Bulgarian lev (лв., BGN)

Language(s)

Bulgarian

Ease of doing business

Easy

Payroll frequency

Monthly

Employer taxes

18.92% – 19.62%

Payroll

Monthly Payroll

Salaries in Bulgaria are paid mid-month for the previous month. For example, salaries for April are paid in mid-May.

Minimum Wage Requirements

The minimum wage in Bulgaria for 2021 is BGN 650 per month and it is expected to increase to BGN 764 in 2022.

Individual Income Tax

The individual income tax is a flat rate of 10%.

Note: apart from this income tax, employees will have to contribute 13.78% to Social Security.

Employer Cost

The employer cost is generally estimated between 9-19% of the employee’s salary.

Pension Fund – 13.72%

Health Insurance – 4.80%

Occupational Accident and Disease Fund – 0.40%

Labor Safety Company Insurance – BGN 25,00

Working Hours

Work Week

Monday to Friday.

Overtime Pay & Maximum Hours

  • Standard working hours are 8 hours per day, 40 hours per week.
  • Maximum limits are set at 3 hours per day (across two consecutive days)
  • Overtime paid at 150% regular pay or as time off in lieu at a ratio of 1 to 1.5 days

Employment Termination

Terminations in Bulgaria can be complex. There is no at-will termination and it is not possible to terminate a contract without cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Disciplinary dismissal
    • Business closure
    • Reduction of work
    • By the expiration of the contract

Untaken holidays must be paid out upon termination as well as any unpaid commission or bonuses.

Notice period

The statutory minimum notice period in Bulgaria is 30 days’ notice, however, it is common practice to be 90 days.

Probation periods

The probation period for permanent employees is generally three months, up to a maximum of 6 months.

These details are subject to change by the respective government and regulatory authorities in each country.

Valueleaf

Valueleaf is the partner of choice for global firms, medium enterprises, pre-IPO companies, tech firms backed by private equity and startups to build international teams and become global players without having to establish a local presence.

GLOBAL HEADQUARTERS

Level-6, First Central 200
2 Lakeside Drive
Park Royal
London
NW10 7FQ

© Valueleaf. All rights reserved worldwide.