Bulgaria combines a growing tech talent pool with one of the EU’s simplest tax systems: a flat 10% income tax and capped social contributions. Bulgaria adopted the euro on 1 January 2026, so salaries, contracts and contributions are now in EUR at BGN 1.95583 = €1. The minimum wage rose to €620.20 on the same day. After a political crisis delayed the budget, it was adopted on 24 July 2026, and the contribution cap rose to €2,300 a month from 1 August 2026. The EU Pay Transparency Directive is not yet transposed; a draft law went to parliament in September 2026.
Currency: Euro (€ EUR), since 1 January 2026
Language: Bulgarian (official; contracts and HR documents in Bulgarian, bilingual versions allowed)
Regulatory Authority: National Revenue Agency (NRA), National Social Security Institute (NSSI), General Labour Inspectorate and the Commission for Personal Data Protection
Last updated: October 2026
€620.20 gross a month from 1 January 2026, or €3.74 an hour, up 12.6% on 2025. One national rate. Contracts below the new minimum need a supplementary agreement.
Written and signed before work starts, then notified to the NRA within 3 days. The employee must receive the NRA-certified notice before day one. Records are kept in the electronic employment record.
Up to 6 months, agreed in the contract in favour of the employer, the employee or both. The favoured party can end the contract without notice. Only one probation per role.
About 19%–20% on top of gross salary, on pay up to €2,300 a month. Above the cap, contributions are fixed, which keeps senior hires cost-efficient.
At least 20 working days of annual leave, with more for some groups. Bulgaria has 14 public holidays; those on a weekend move to the next working day.
8 hours a day and 40 hours a week over 5 days. The maximum is 48 hours a week including overtime. Night shifts are 7 hours.
18.92%–19.62% in total: pension 10.92%, illness and maternity 2.10%, unemployment 0.60%, work accident 0.4%–1.1%, guarantee fund 0.10% and health 4.80%.
Flat 10% on gross pay minus the employee's 13.78% mandatory contributions. Child tax relief of €3,067.75 or more a year can be claimed monthly through payroll.
At least +50% on working days, +75% on weekends and +100% on public holidays. Overtime is limited to 150 hours a year, or 300 by collective agreement.
Notice is 30 days for indefinite contracts, extendable to 3 months. Redundancy pays 1 month's gross. Retirement pays 2 months, or 6 months after 10+ years with the employer.
All amounts due, including unused leave, are payable on termination and are usually paid by the next payday. Register the termination with the NRA within 7 days.
Since 1 January 2026, salaries, contracts, contributions and filings are in EUR at BGN 1.95583 = €1, rounded in the employee's favour. Returns for periods up to 2025 stay in BGN.
2025–2026 updates
Sign a written contract in Bulgarian, or bilingual, before work begins. Notify the NRA within 3 days and give the employee the NRA-certified notice before their first day. Record the employment in the electronic employment record. Fixed-term contracts are allowed only for temporary, seasonal or replacement work and are generally capped at 3 years. Any probation, up to 6 months, must be written into the contract. Express all pay in EUR.
Run payroll monthly in EUR. Pay social and health contributions and withheld income tax, and file the D1 and D6 declarations, by the 25th of the following month. Employer contributions are 18.92%–19.62% and employee contributions 13.78%, both on pay up to €2,300 a month. Income tax is a flat 10%. Submit annual NSSI and NRA reports at the end of January. A foreign employer without an entity can register with the NRA.
Employees get at least 20 working days of annual leave and 14 public holidays. Under current rules, the employer pays the first 3 days of sick leave at 70% of average daily pay, then NSSI takes over. Maternity leave is 410 days, 45 of them before birth, paid by NSSI. Fathers get 15 days after the birth plus 2 months of father’s leave. A seniority bonus of at least 0.6% of base salary per year of experience is mandatory.
Dismissal is allowed only on grounds listed in the Labour Code, such as closure, staff reduction, reduced workload, lack of suitability or disciplinary reasons. Notice is 30 days by default for indefinite contracts, and pay in lieu is possible. Redundancy pays 1 month’s gross salary. Pregnant employees, mothers of children under 3, employees on leave and union representatives are protected and may need Labour Inspectorate approval. Register the termination with the NRA within 7 days.
Adopt internal work rules and internal salary rules, carry out an OHS risk assessment and training, and contract an occupational health service. Employers with 50 or more staff need a whistleblowing channel. Follow GDPR and the Personal Data Protection Act, including rules on keeping employee records and monitoring email and CCTV. Prepare pay structures now: the pay transparency bill is expected to require pay ranges before interviews and ban pay-history questions.
Download the full Bulgaria Payroll & Employment Guide 2026 (PDF)
For detailed hiring information, customised employment guidance or support with your Bulgaria hiring, please reach out to our team. We provide compliant employment contracts, payroll processing and tax remittance, social security registration and reporting, benefits administration, and onboarding and offboarding support. See our EOR pricing: flat from $349 per employee, per month.
FAQ
Yes. An Employer of Record such as StratEdge Global becomes the legal employer and handles contracts, NRA registration, payroll, contributions and compliance, while you direct the day-to-day work.
Yes. Since 1 January 2026, salaries, contracts and contributions are in EUR at BGN 1.95583 = €1. Existing contracts remain valid, but a supplementary agreement is recommended.
About 18.9%–19.6% in contributions on pay up to €2,300 a month. Above the cap, contributions are fixed, which makes Bulgaria cost-efficient for senior hires.
There is no 13th salary. A seniority bonus of at least 0.6% of base salary for each year of professional experience is mandatory.
