Country Guides

Bulgaria

Quick Find

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Capital

Sofia

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Language

Bulgarian

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Remote workers

1.2% of the population

payments

Currency

€ Euro (EUR)

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Working hours

40 hours

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Public holidays

11 days per year

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Minimum hourly salary

EUR 3.74

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Tax year

Jan 1 - Dec 31

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Date format

DD/MM/YYYY

Misclassification penalties

Fines of BGN 100 (around EUR 51) to BGN 20 000 (around EUR 10 226) for non-compliance with Labour laws. Employees working without an employment agreement can be fined triple the amount due for the mandatory social and health insurance contributions.

Fun fact

Bulgaria has an official day of the alphabet, celebrated on May 24th.

Employer contributions

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    Employer tax: 18.92% - 19.62%
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    Social insurance: 18.92% - 19.62%, which includes 8.22% pension contribution and 4.8% health insurance

Employee contributions

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    Employee tax: 23.78%
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    Social security: 13.78%
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    Income tax: a flat 10% tax

Looking for a quick cost estimate?

Use our calculator to understand what are all the employment costs you have to consider in Bulgaria.

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Employer of Record in Bulgaria

What is an EOR?

An Employer of Record is the legal employer in a country where the company isn’t registered as an employer. However, in Bulgaria, the employment model requires a temp agency licence. The temp agency handles all Bulgarian compliance aspects of employment, including local laws, payroll, taxes, statutory benefits, employment contracts and more.

EOR responsibilities

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    Ensuring their employment is compliant with local employment laws
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    Processing local payroll
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    Filing employment related taxes and returns
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    Issuing payslips to the employee
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    Distributing salary payments

How it works

  • Company

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

  • Boundless

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

  • Employee

    Signs an employment contract with Boundless and fulfils all of their obligations as a worker for the company.

Statutory benefits in Bulgaria

  • Medical examination

    Many employees are subject to preliminary medical examination, which take place when they are first hired and then in a certain cadence depending on age

  • Occupational safety & health training

    The employer must conduct health and safety training at work and each employee should undergo it. This is done during work hours and at the expense of the employer.

Common non-mandatory benefits in Bulgaria

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    Company social and other benefits
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    Additional pension contributions
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    Additional days off
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    Transport
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    Life assurance
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    Supplementary health insurance
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    Cash bonus
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    Flexibility
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    Multisport cards
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Employment contract

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Protection of personal information

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Union membership

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Protection from harassment

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Protection from discrimination

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Preservation of the employment in the event of employer change

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Protection from dismissal

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Equal treatment

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Medical examination

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Pay transparency

Paid time off

20 days + public holidays

Sick leave

Unlimited. Employers cover the first two days of sick pay at 70%. After that, the leave is paid by the National Social Security Institute

Paid maternity leave

410 days

Paid paternity leave

15 days

Paid parental leave

Unlimited until the child turns two

Probation

The probation period is agreed upon between the employer and the employee but cannot be more than six months. An employment contract with a probation period may be concluded only once regarding the same employee in the same company for the same position.

Non-compete

Non-compete clauses in an employment contract restricting employment with competitors’ companies after terminating employment are considered void.

Payment frequency

Most companies pay employees monthly, but it is legal to pay employees daily and weekly in Bulgaria.

Payday

Usually, on the last working day of each month and no later than the 10th of the following month.

There are four ways of terminating employment:

  •  With the agreement of the parties (at any time).
  •  At the employer or the employee initiative and fulfilment of the notice period, which according to the Bulgarian labour code requires a specific, justified reason in writing
  •  At the employer or the employee initiative without fulfilling the notice period.
  •  At the expiry of the contract term (for fixed-term contracts).

Under Bulgarian labour law, selected employee categories are protected against their employment being terminated with notice.

Employees for whom social insurance contributions have been paid or are due with the Unemployment Fund for at least 12 months during the last 18 months preceding the employee termination are entitled to receive unemployment compensation.

Employees are entitled to severance pay for their unused annual paid leave, as well as either the notice period or up to one month’s pay in certain employee termination cases.

FAQs

Hiring in Bulgaria generally comes down to four routes. You can run payroll from your HQ for short-term cases, engage contractors for project-based work, set up a local entity to hire directly, or partner with a temp agency licence holder. EOR isn’t a recognised model in Bulgaria, temp agency licences are required, and Boundless holds one to employ staff compliantly without setting up a local entity.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full and undivided attention to your company in Bulgaria, employment is the right structure under Bulgarian law, covering entitlements like paid annual leave, sick leave, and NSSI social security. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in Bulgaria.

HR compliance in Bulgaria means your policies and procedures respect all applicable Bulgarian labour laws and regulations. When you hire in Bulgaria, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (20 days), minimum wage (€3.74/hour), tax credits, and a 40-hour working week. Following these is fundamental for running the business well.

Employing in Bulgaria involves statutory contributions on top of gross salary. Bulgarian employers contribute to the National Social Security Institute, covering pension contributions to the Mandatory state pension fund and health insurance contributions to the National Health Insurance Fund, among others. To view exact percentages and amounts for the salary you plan to offer, use our handy calculator tool.

EOR isn’t a recognised model in Bulgaria; a temp agency licence is required, and Boundless holds one. We are the legal employer of the individual in Bulgaria for government, tax, and employment purposes, providing a locally compliant contract, running payroll, filing employment taxes, and administering statutory benefits such as 410 days of maternity leave and 20 days of annual leave. You manage day-to-day work and fund payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including Bulgaria. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

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