Hire employees in

Bulgaria, hassle-free

Hire employees in Bulgaria, hassle-free

With Deel, your business can easily hire employees in Bulgaria. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Bulgaria is 5 days with Deel.

Download the Guide

Currency

BGN

Capital

Sofia

Official Language

Bulgarian

Payroll Cycle

Monthly

Hire employees in Bulgaria. No entity needed.

Usually, to hire in Bulgaria, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Bulgaria also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Bulgaria quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for Bulgaria
built right in

Deel allows you to provide localized benefits for employees in Bulgaria within minutes. All in one manageable online dashboard.

  • Work Accident Insurance
  • Private Healthcare - Unisure (optional)

Our quickstart guide to hiring in Bulgaria

Navigate the tabs below to learn everything you need to know about hiring an employee in Bulgaria

Minimum Wage Requirements

The minimum wage in Bulgaria for 2021 is BGN 650 per month and it is expected to increase to BGN 764 in 2022.

Individual Income Tax

The individual income tax is a flat rate of 10%.

Note: apart from this income tax, employees will have to contribute 13.78% to Social Security.

Employer Cost

The employer cost is generally estimated between 9-19% of the employee's salary.

  • Pension Fund - 13.72%
  • Health Insurance - 4.80%
  • Occupational Accident and Disease Fund - 0.40%
  • Labor Safety Company Insurance - BGN 25,00

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Maternity Leave

Pregnant employees, who have worked for 12 consecutive months are entitled to 410 days of paid leave. The employee must take 45 days before the child's birth and 45 days after the birth. The remaining days can be taken at the employee’s discretion until the child is two years old.

The employee will receive different compensation during this period depending on when the leave was taken. The National Insurance Institute is responsible for payment and will directly pay the employee.

Period (Child’s Age) Pay Payer
0 - 1 year 90% of salary National Insurance Institute
1 - 2 years BGN 380,00 per month National Insurance Institute

Paternity Leave

Employees, who have worked for 12 months, are entitled to 15 days of paid paternity leave. The employee will receive 90% of their salary during this period paid directly by the National Insurance Institute.

The employee can extend leave an additional 6 months which is unpaid.

Parental Leave

In Bulgaria, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave. Employees can extend leaves by:

  • Transferring maternity leave, including cash benefits, to the partner after six months of leave.
  • Requesting Raising Child Benefits that the National Insurance Institute will cover.

Sick Leave

Employees are entitled to paid sick leave for up to 180 days. The employer pays the first three days at 70% of the salary. From the fourth day onward, the National Insurance Institute pays 80% of its salary.

Termination Requirements

Terminations in Bulgaria can be complex. There is no at-will termination and it is not possible to terminate a contract without cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • Probation period
    • Disciplinary dismissal
    • Business closure
    • Reduction of work.
  • By the expiration of the contract

Untaken holidays must be paid out upon termination as well as any unpaid commission or bonuses.

Notice Period

The minimum notice period for both parties is 30 days and can be increased up to 90 days.

Severance for Employees

In Bulgaria, employees are entitled to severance pay. Severance pay varies according to the grounds on which the agreement is terminated:

  • The employer closes the entity or reduces the staff: one-month severance must be paid.
  • The employer terminates the employment relationship due to health issues, or risk to the health of the employee if they work for at least five years: two months of severance must be paid.
  • The employee reached the age of retirement:
    • Length of employment is less than 10 years: three months of severance
    • Length of employment is 10 or more years: six months of severance
  • The contract is terminated against payment of compensation by mutual agreement on the initiative of the employer: at least four months of severance must be paid.
  • The employer terminates the contract without providing the proper notice: three months of severance pay.

Paid Time Off

Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) a year. PTO accrues monthly 1.67 days per month.

If a part-time employee works less than four hours per day, the PTO will be calculated proportionally to the time worked.

Public Holidays

Bulgaria celebrates 13 public holidays per year. These include:

  1. New Year's Day
  2. Bulgaria Liberation Day
  3. Good Friday
  4. Labour Day
  5. Orthodox Easter
  6. Orthodox Easter Monday
  7. Đurđevdan
  8. Day of Slavonic Alphabet, Bulgarian Enlightenment, and Culture
  9. Unification Day
  10. Independence Day
  11. Eastern Orthodox Christmas Eve
  12. Orthodox Christmas Day
  13. 2nd Day of Christmas

Onboarding

Onboarding takes 5 business days.

Employment Contract Details

Contracts must be in Bulgarian and can be bilingual. They must be in writing and signed by both parties. A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description based on the national code of the National Jobs Classificatory Database
  • Termination conditions
  • Years of service

Probation Period

Probation periods are not mandatory. The minimum probation period is 30 days. The maximum probation period is 180 days (6 months).
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Hiring in Bulgaria, hassle-free

With Deel, your business can easily hire employees in Bulgaria. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

9%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Bulgaria?

View our Employee Cost Calculator

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