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.