☑️ The Basics

Currency: Bulgarian lev, BGN (Rate)

Public Holidays: 15 public holidays (see here)

Employer Taxes: 18.92% - 19.62% of gross salary

Official Language: Bulgarian

Payroll frequency: Monthly

Three things to know about employing in Bulgaria

1. There is a concept of "length of service" pay which is an incremental increase of 0.6% on the employees salary for each year they have worked at a company or in a similar profession. The most common practice is to offer salaries inclusive of the "length of service" pay amount.
2. An employer may offer to terminate the employment contract in exchange for a severance payment. If the worker accepts the offer, the employer is obliged to pay severance in the amount no less than four times his last gross monthly salary.
3. The employee must use their annual paid leave (at once or in parts) within the relevant calendar year.

Employment in Bulgaria

Notice Period

The notice period for either party is usually one month, but it can be up to three months. All notice periods should be provided in the employment agreement.

Employees can resign without complying with the notice period but will forfeit any notice payment.

Termination & Severance

Employers must provide cause for the termination and provide at least one month's notice. Payment may be made in lieu of notice.

Severance is required and the entitlement varies from one to seven months' gross remuneration.

Probationary period

Six months

Minimum Wage

BGN 3.66 per hour and BGN 610 per month

IP protection and non-compete agreements

Post-employment non-compete agreements are invalid and unenforceable.

Length of service pay

There is an additional employment remuneration once their length of service and professional experience exceeds one year. This includes length of service / professional experience gained both:

• With their current employer.
• In the same or in a similar position with a previous employer.

This additional remuneration amounts to at least 0.6% of their monthly salary for each year of service / professional experience.

When making an offer on the salary, the most common practice is to include the length of service pay in the total amount you are offering e.g. total amount = base salary + length of service pay.

Working Hours

Eight hours daily, 40 hours weekly.

Overtime

Overtime cannot exceed three hours per day over two consecutive days; six hours in a week; 30 hours in a month; and 150 hours in a year.

Overtime work is paid at a rate of 150% for regular days, 175% for weekends, and 200% for national holidays.

Employees can opt out of their standard working time arrangements under an agreement with the employer.

Paid Holidays

Employees are entitled to a 20 days of paid holidays every year after they have worked for at least eight months (irrespective of the employer).

Employees must be paid out all earned but unused annual paid leave from the two years prior to dismissal.

Sick pay and time off

Employees are entitled to paid sick leave, of which the employer pays 70% of the basic income for the first three days. The fourth day onwards is paid by the National Social Security Institute (at 80% of the basic income).

Employees must have six months' social security insurance history to be eligible for these payments.

Parental leave

Employees are entitled to 410 days of maternity leave, paid at 90% of their basic income from the Social Security fund. Maternity leave can begin 45 days before the birth.

Employees are also entitled to 15 days paternity leave paid at 90% basic income rate, also paid from the Social Security fund.

Employees are paid from the National Social Security Fund if they have at least 12 months' social security insurance history.

Taxes in Bulgaria

<aside> 💡 You can get a detailed breakdown of the employer contributions for any gross salary by using our Oyster Platform Quote Generator.

For access please email [email protected].

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Employees

Social Security (13.78%)

Income tax (flat rate of 10%)

Employers

Total social contributions (18.92% - 19.62%)

• Social Security + Unemployment: 13.72%
• Accident at Work & Occupational Illness Fund: 0.40% - 1.10%
• Health Insurance: 4.8%

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