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Bulgaria Payroll Employment Guide

Located in Southeastern Europe, Bulgaria is a country known for its well-educated talent pool and attractive employment costs for global companies. The country has its own specific rules regarding minimum wages (BGN 833/month), employment contracts (written, with mandatory terms and probation up to 6 months), and social security contributions (employer ~19%, employee withholding for income tax) that employers need to follow.

Currency: Bulgarian Lev (BGN)

Language: Bulgarian

Minimum Wage

BGN 833/month

Probation Period

Up to 6 months

Employment Cost

19-20% (employer burden)

Paid Leave Days

20 working days minimum

Working Hours

40 hours/week (8 hours/day)

Employer Social Security

~19% (pension, health, unemployment, accident)

Income Tax

Flat rate (employee withholding)

Overtime Premium

150% regular; 175% weekend; 200% holidays

Hiring Guide

Employment Contracts

Written contracts in Bulgarian required, specifying position, place of work, start date, type of employment (indefinite or fixed-term, max 3 years), working time, remuneration, and notice periods. Fixed-term contracts must not abuse statutory rights. Probation periods permitted up to 6 months. All employment must comply with the Labour Code and applicable collective bargaining agreements.

Payroll & Taxes

Employer social security contributions ~19% (pension fund 8.22%, additional pension 2.80%, health insurance 4.80%, sickness & disability 2.10%, unemployment 0.60%, industrial accident 0.50%). Employee progressive withholding applies. Monthly payroll processing, tax declarations to National Revenue Agency (NRA), and timely payment of social/health contributions required by statutory deadlines.

Benefits & Leave

Minimum 20 days paid annual leave per year (pro-rata in first year: 1.8 days/month). Sick leave up to 18 months (employer pays first 2 days at 70%; social security covers 80-90% thereafter). Maternity leave 365 days paid by state (potential extension to second year at reduced rate). Paternity leave 14 days paid by employer. Public holidays and statutory protections apply.

Termination & Severance

Notice period minimum 1 month outside probation (no notice during probation). Dismissals for underperformance or misconduct require documented grounds. Redundancy severance typically 1 month’s salary for individual/collective dismissal. Mass redundancies require prior consultation with employee representatives and state authorities. All terminations must follow Labour Code procedures.

EOR Requirements

EOR providers must maintain written, compliant employment contracts, register employees with social/health insurance funds and NRA, calculate and remit payroll taxes/contributions monthly, issue payslips, observe working-time and leave rules, follow statutory termination procedures, maintain payroll records, and ensure immigration/work-permit compliance for non-EU nationals. Avoid sham outsourcing arrangements that could trigger joint liability with the client.

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For detailed hiring information, customized employment guidance, or support with your Bulgaria EOR setup, please reach out to our team. We provide compliant employment contracts, payroll processing & tax remittance, social security registration & reporting, benefits administration, and customized onboarding & off boarding services.