Hire in Bulgaria

EOR in Bulgaria

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Bulgaria, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Bulgaria ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Bulgaria and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Bulgaria

The right to work is explicitly provided in the Bulgarian constitution. The relationship between an employee and an employer is primarily governed by the Labor Code of 1986 as amended and various rules and regulations. The provisions of the Labor Code cannot be contractually waived. The rights and obligations provided in collective or individual employment agreements may only provide the employee with more favorable terms than those set out in the Labor Code.

Employment agreements must be in writing and must be registered with the local office of the National Revenue Agency. Employees may start working only after they have been provided with evidence that this registration has been made.

Employment contracts in Bulgaria

As you look to hire employees in Bulgaria, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The Labor Code provides for a five-day, 40-hour workweek. Eight hours is the standard length of the working day. In certain circumstances (usually relating to the production process), the workweek may be extended, although any extension of working hours should first be discussed with trade union or other employee representatives. In no case may the length of the workweek exceed 48 hours (56 hours in the event of summarized calculation of working time). Flexible and irregular work hours are allowed.

Employees are entitled to 12 hours of rest per day and 48 hours per week and breaks during the workday. The lunch break cannot be less than 30 minutes.

Employees cannot be required to work more than two overtime hours a day.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• Effective January 1, 2025, the monthly minimum wage has increased to 1,077 Bulgarian leva (US$600.62) from 933 leva (US$520.31).
• For each hour worked between 10 p.m. and 6 a.m., employees are entitled to additional remuneration of not less than 0.25 lev.
• After one year’s service, employees are entitled to additional compensation based on length of service and professional experience. This compensation is calculated as a percentage of the base monthly salary.
• An employer must pay employees the following premiums for overtime work:
• Overtime worked on business days by employees on flexible schedules does not qualify for premium pay.
• Employees who are required to work on a public holiday are entitled to be paid double time.

As your employer of record in Bulgaria, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

Year-end bonuses are not explicitly regulated by law and may be given at the discretion of the employer and included in the individual or collective employment agreement.

Probationary period

The probation period in Bulgaria is up to six months.

Termination and severance

Employment agreements may be terminated with or without notice by mutual consent of both parties or unilaterally by the employee or the employer. Termination is heavily regulated by the Labor Code.

Notice of termination of an employment agreement must be given in writing. In general, the notice period is 30 days unless the parties have agreed on a longer period, which may not exceed three months.

Under the Labor Code, employees have the right to terminate the employment agreement with or without notice. When the employee terminates with prior notice, no reason need be given to the employer.

Employers may induce employees to leave employment in exchange for compensation in an amount not less than four months’ gross salary.

Upon termination of employment, the employee is entitled to compensation for unused annual leave.

Pregnant women, women on maternity leave, and women with children of up to three years of age have special protection related to dismissal.

Employee benefits and paid leave in Bulgaria

When negotiating terms of an employment contract with a candidate in Bulgaria, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Female employees are entitled to 410 days of paid maternity leave for each child, of which 45 days must be used before the expected delivery. When the child’s birth occurs before the 45th day, the unused time is added to postnatal leave. During this period, the mother receives compensation from public social security funds in an amount equal to 90% of her average daily gross salary or the average daily income on which social security contributions have been calculated. Following maternity leave, a female employee is entitled to an additional two years’ leave provided that the child is not in a child-care establishment.

Vacation

An employee who has worked for an employer for at least eight months is entitled to paid annual leave of at least 20 working days. Collective and individual employment agreements may provide for additional leave.

Employees who work under specific conditions or a flexible working schedule and certain categories of personnel listed in the Ordinance of the Councils of Ministers (mainly in education and science) also have the right to additional paid leave. Regular salary or wages continue during annual leave.

Under the Labor Code, paid annual leave should generally be used during the year earned, although up to half can be postponed.

If all paid annual leave has not been used within two years of the year earned regardless of the reason, the employee’s right to the leave ends.

Holidays

Bulgaria observes the following holidays:

• New Year
• Day of the Liberation of Bulgaria from Ottoman Domination
• Good Friday
• Holy Saturday
• Easter
• Easter Monday
• Labor and International Workers’ Solidarity Day
• St. George’s Day
• Day of Bulgarian Education and Culture
• Bulgaria-Rumelia Union Day
• Bulgaria Independence Day
• Christmas Eve
• Christmas (two days)

Public holidays that take place on a weekend are not carried over to the following Monday. When a public holiday takes place on a Tuesday, Wednesday, or Thursday, a Monday or Friday is sometimes taken as an official holiday to make a long weekend.

Sick leave

Employees who have contributed to the social security fund for at least six months are entitled to up to 18 months of paid sick leave. The employer must pay the employee 70% of the average daily remuneration during the first three days of missed work, after which compensation is paid by the National Social Security Institute.

The sick pay benefit from the National Social Security Institute is 80% of the average daily remuneration if the temporary disability is due to general sickness, and 90% in the case of an employment injury or occupational disease. Compensation is only payable if a medical certificate is provided attesting to the disability.

Health coverage

The retirement age for men is 64 with 38 years of contributions and will gradually increase to 65 in 2029. The retirement age for women is 61 with 35 years of contributions and will gradually increase until it reaches 63 in 2020 and 65 in 2037. The required years of contributions will gradually rise to 40 years for men and 37 years for women.

The Bulgarian social security system consists of medical and social insurance.

Social security providers are the National Social Security Institute and the National Health Insurance Fund. Social security contributions are collected by the National Revenue Agency.

All employees hired for more than five days or 40 hours per calendar month are subject to mandatory Public Social Security, which provides compensation, aid and pensions in cases of temporary disability, temporary reduced ability to work, permanent disability, maternity leave, unemployment, retirement and death.

Social security and health insurance contributions are paid by the employer and the employee.

An employer’s cost for each employee (social insurance, health insurance and pension contributions) averages 16% of salary.

Additional benefits

In addition to healthcare benefits, employees in Bulgaria are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Bulgaria, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: October 17, 2024

Employee onboarding with an employer of record in Bulgaria

We write and validate all local employment contracts, streamlining the onboarding process for you and your Bulgarian employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Bulgaria, we will:

• Schedule a welcome call to discuss HR and employment information for Bulgaria, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.