Remote makes employment in Bulgaria easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence.
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Bulgaria is a country in Southeast Europe with Romania, Serbia and North Macedonia, Greece, and Turkey as its bordering countries. Its capital and largest city is Sofia while other major cities include Plovdiv, Varna, and Burgas.
Bulgaria is a founding state of the Organization for Security and Co-operation in Europe (OSCE) and is a member of NATO, the European Union, and the Council of Europe. The country's economy revolves around services industries, in addition to mining and agriculture. Even though Bulgaria has the lowest GDP per capita and joint-lowest Human Development Index in the European Union, it is a developing country with an upper-middle-income economy.
6,912,730 (Mar 7 2021)
Ease of doing business
Cost of living index
$$ (91 of 139 nations)
VAT - standard rate
GDP - real growth rate
Looking to employ workers in Bulgaria? Companies hiring in Bulgaria must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Bulgaria on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Bulgaria team. You can also pay contractors now in Bulgaria with Remote.
Companies that are looking to hire people in Bulgaria must ensure they have a deep understanding of the Bulgarian Labour Code. Legislation in Bulgaria is also closely linked to the labour laws of the European Union. Companies that are looking to employ people in Bulgaria must understand the specific Bulgarian laws around equal pay for men and women, the limitations of overtime, bans on workplace discrimination, and the specific legislative requirements of managing sick leave for Bulgarian employees.
Common questions that could come up during the hiring process may be about overtime rates, health insurance, and parental leave. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Bulgaria.
Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.
|Monday, January 2, 2023||New Year Holiday - observed (Нова година)||Substitute for January 1st|
|Friday, March 3, 2023||Liberation Day (Ден на Освобождението на България от османско иго - национален празник)|
|Friday, April 14, 2023||Orthodox Good Friday (Великден)|
|Saturday, April 15, 2023||Orthodox Holy Saturday (Великден)|
|Sunday, April 16, 2023||Orthodox Easter Sunday (Великден)|
|Monday, April 17, 2023||Orthodox Easter Monday (Великден)|
|Monday, May 1, 2023||Labour Day (Ден на труда и на международната работническа солидарност)|
|Monday, May 8, 2023||Saint George’s Day - observed (Гергьовден, Ден на храбростта и Българската армия)||Substitute for May 6th|
|Wednesday, May 24, 2023||Culture and Literacy Day (Ден на светите братя Кирил и Методий, на българската азбука, просвета и култура и на славянската книжовност)|
|Wednesday, September 6, 2023||Unification Day (Ден на Съединението)|
|Friday, September 22, 2023||Independence Day (Ден на Независимостта на България)|
|Monday, December 25, 2023||Christmas Day (Рождество Христово)|
|Tuesday, December 26, 2023||Second Day of Christmas (Рождество Христово)|
|Wednesday, December 27, 2023||Christmas Eve - observed (Бъдни вечер)||Substitute for December 24th|
From January 2021, the minimum working salary and monthly social security income were increased from BGN 610 to BGN 650. The maximum monthly social security income remains at BGN 3,000.
Salaries in Bulgaria are paid mid-month for the previous month. For example, salaries for April are paid in mid-May.
We can help you get a new employee started in Bulgaria fast. The minimum onboarding time we need is only 8 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Bulgaria are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Bulgaria.
The following statutory benefits are made as employment deductions through payroll:
10.92% - State Social Insurance contributions (disability, disease, maternity, old age pension)
2.80% - Supplementary Compulsory Pension Insurance
4.80% - Healthcare contributions (mandatory medical insurance)
0.4-1.1% - Accident at Work and Occupational Diseases Fund
The contributions to the State Insurance System are based on the gross salary of the employee, but the total is limited to a monthly maximum of BGN 3,000 as of 2020.
8.38% - State Social Insurance contributions (disability, disease, maternity, old age pension)
2.20% - Supplementary Compulsory Pension Insurance
3.20% - Healthcare contributions (mandatory medical insurance)
10% flat rate (personal income tax is taken from the gross salary minus all contributions)
In Bulgaria, four weeks of leave is granted every year. It is also interesting to note that in the scenario where a public holiday falls on a weekend, the following Monday becomes a paid holiday.
Expecting mothers are entitled to 58 weeks at 90% of the maximum social security income (capped at 3,000 BGN in 2021, raised to 3,400 BGN in April 2022). This income is paid by the government, not the employer. Forty-five days of maternity leave are usually taken before the birth of a child. With the mother's consent, when the child reaches six months, the leave can be transferred to the father for the rest of the period.
In Bulgaria, paternity leave is for 2 weeks with 90% pay.
The parental leave is for 104 weeks out of which there will be a flat-rate of income fixed for 52 weeks while the remaining period will be unpaid leave.
The employer pays 70% of the basic income for the first three days of illness or general injury. Social Security provides 80% of the basic income from the fourth day of sickness until full recovery.
The employee needs to provide a sickness leave document from a medical practitioner within 2 days of issue and the employer must register this document to the authorities. The doctor is also responsible for sending a separate document to the authorities.
According to the Bulgarian legislation the employer has an obligation to maintain a sick leave register and keep the sick leave documents presented by employees for a period of three years. The documents have to be kept in their original form. This data must be submitted to the National Social Security Institute (NSSI) and the deadline for this reporting is the 10th date of the following month after the sick leave documents are presented by the employee.
In Bulgaria, there are various laws to be followed by both employers and employees in the case of a termination. For example, if there is a mutual agreement between the parties to terminate the employment contract, it is easily dealt with, by communicating it in writing. However, if the employee is part of a union, then the employer will have to take permission from the union before terminating the employee.
Employers face significant complexity managing any form of termination, as there are so many specific types of terminations specifically outlined in the labour code and other employment laws.
Potential reasons for terminations:
In Bulgaria, the length of the notice period depends on whether it’s an open ended (permanent) contract or a fixed term contract.
Severance pay for unilateral termination
There is no statutory severance pay unless in the following scenarios:
Severance pay for termination by mutual agreement
When the employer wants to terminate through a mutual agreement (both parties agree to terminate the contract), there is a minimum requirement of four (4months) of severance (bonus) to be paid to the employee. However, the parties can agree on a higher amount of the compensation.
In Bulgaria, the probation period cannot exceed 6 months.