Bulgaria
Available
hours/week
See how hiring works in Bulgaria
Learn about local payroll, taxes, and employment laws in Bulgaria
Minimum Wage Standards
The statutory minimum wage in Bulgaria is established at €620.20 per month for full-time employment, effective January 1, 2026. This represents a 12.6% increase from the previous year's minimum of €550.66.
The minimum hourly wage is set at €3.74 per hour, calculated based on a standard 8-hour workday and 5-day workweek.
This adjustment benefits approximately 600,000 workers, including personal assistants, social service employees, and those in state-funded employment programs.
Income Tax Structure
Bulgaria applies a flat individual income tax rate of 10% on all earned income.
In addition to income tax, employees contribute 13.78% of their gross salary to Social Security contributions.
Employer Contributions
Total employer costs in Bulgaria are generally estimated at 19% of the employee's gross salary.
Mandatory Social Security Contributions:
- Health Insurance: 4.80%*
- Occupational Accident & Disease Fund: 0.50%*
- Common Sickness & Maternity Fund: 2.10%*
- Unemployment Fund: 0.60%*
- Pension Fund (NSSI): 8.22%*
- Supplementary Compulsory Pension Insurance (Universal Pension Fund): 2.80%*
Additional Mandatory Costs:
- Medical Exam Evaluation and Health & Safety: €2.56
*Maximum salary threshold for contribution calculations: €1,917 per month (converted from 3,750 BGN at the official rate of 1.95583)
One-Time Fees:
- Courier Cost for Employment Agreement Delivery: €10.23
- Mandatory Wet Ink Employment Agreement Handling Fee: $80 USD
Annual Fees:
- Risk Assessment: €17.90
- Labor Safety Company Insurance: €12.78
Important Note: These cost estimates are provided for general informational purposes. Actual employer costs depend on specific employment conditions and agreements. Contact our team for precise calculations customized to your requirements.
Overtime & Working Hours
Standard working schedule in Bulgaria: 8 hours per day, 40 hours per week. The typical workweek spans Monday through Friday.
Maternity Leave
Pregnant employees who have completed 12 consecutive months of service are entitled to 410 days of paid maternity leave. The employee must utilize 45 days before the expected delivery date and 45 days following childbirth. Remaining days may be taken at the employee's discretion until the child reaches two years of age.
Compensation varies depending on when leave is taken. The National Insurance Institute administers payment and compensates employees directly.
| Period (Child's Age) | Compensation Rate | Payer |
|---|---|---|
| 0 - 1 year | 90% of salary | National Insurance Institute |
| 1 - 2 years | €194.30 per month | National Insurance Institute |
Paternity Leave
Employees who have completed 12 months of service are entitled to 15 days of paid paternity leave. Employees receive 90% of their salary during this period, paid directly by the National Insurance Institute.
Employees may extend leave for an additional six months, which remains unpaid.
Parental Leave
Bulgaria does not have specific statutory parental leave provisions. However, employees may extend their maternity and paternity leave entitlements through the following options:
- Transferring maternity leave benefits, including cash payments, to the partner after six months of utilization
- Requesting Raising Child Benefits coverage from the National Insurance Institute
Sick Leave
Sick leave compensation in Bulgaria is determined through two distinct phases:
Phase 1: Employer Payment
The employer compensates approximately 70% of salary for the initial three days of sick leave.
Phase 2: Government Coverage
From the fourth consecutive sick day onward, the government (NSSI National Social Security Institute) provides sick leave compensation at 80% of average daily income calculated from the last 18 months.
Employees are entitled to paid sick leave for up to 180 days. Sick leave may be extended beyond 180 days if the employee receives evaluation from a Special Medical Commission (TELK).
Termination Framework
Employment terminations must adhere to comprehensive regulations and consider applicable laws from the employee's home country. The employer coordinates all separation processes with key stakeholders, potentially involving administrative fees and specific procedural requirements.
Bulgarian employment terminations present complexity. At-will termination does not exist, and employers cannot terminate contracts without valid justification.
Compliant termination methods include:
- Voluntary resignation by employee
- Mutual agreement between parties
- Unilateral employer termination based on:
- — Probation period conclusion
- — Disciplinary dismissal for misconduct
- — Business closure or operational reduction
- — Reduction of workforce requirements
- Contract expiration (fixed-term agreements)
Untaken vacation days must be compensated upon termination, along with any unpaid commission or bonus amounts.
Notice Period Requirements
Minimum notice period for both parties is 30 days, with potential extension up to 90 days depending on employment circumstances and contractual agreements.
Severance Compensation
Bulgarian employees are entitled to severance compensation in specific circumstances. Severance calculation varies according to termination grounds:
Severance entitlement scenarios:
- Employer closes entity or reduces staff: one-month severance payment required
- Employer terminates employment due to health issues or health risks (minimum five years employment): two months of severance required
- Employee reaches retirement age:
- — Employment under 10 years: three months of severance
- — Employment 10+ years: six months of severance
- Contract termination by mutual agreement with employer initiative: minimum four months of severance required
- Employer terminates without proper notice: three months of severance payment
Financial Protection: Our employer of record solution incorporates a Severance Reserve mechanism for all Bulgarian employment agreements to shield you from unexpected financial exposure. This feature leverages our extensive expertise in managing international litigation risk. Severance calculations are based on Bulgarian statutory requirements and local best practices. Any unused reserve amounts are returned to you if the employee resigns or doesn't qualify for severance entitlement.
Paid Annual Leave
Both full-time and part-time employees are entitled to 20 days of paid annual leave per year. Leave accrues monthly at 1.67 days per month.
For part-time employees, vacation day calculations are proportional to contracted working hours.
Public Holidays
Bulgaria celebrates 13 official public holidays annually.
National public holidays include:
- New Year's Day (January 1)
- Bulgaria Liberation Day (March 3)
- Good Friday
- Labour Day (May 1)
- Orthodox Easter
- Orthodox Easter Monday
- Durdevdan (May 6)
- Day of Slavonic Alphabet, Bulgarian Enlightenment, and Culture (May 24)
- Unification Day (September 6)
- Independence Day (September 22)
- Eastern Orthodox Christmas Eve (December 24)
- Orthodox Christmas Day (December 25)
- 2nd Day of Christmas (December 26)
Onboarding Timeline
Employees cannot execute their employment contracts on the scheduled start date. The onboarding process requires seven business days following Statement of Work signature.
Wet ink copies of the signed employment agreement and NRA (National Revenue Agency) registration documentation are required. The employee must complete social security registration within three days of signing the employment agreement.
Employment Contract Specifications
Employment contracts in Bulgaria must be in Bulgarian language, though bilingual versions are permitted. Written agreements signed by both parties are mandatory.
Essential contract elements include:
- Employee name and Personal Identification Number (PIN)
- Basic monthly salary amount
- Contract signing date
- Employment commencement date
- Probation period duration (if applicable)
- Notice period requirements
- Job position title and national job position code
- Working time schedule
- Workplace location
Probationary Period
Probationary periods are not mandatory in Bulgaria. When implemented, minimum probation duration is 30 days with maximum duration of 180 days (six months).
Currency Transition Information
Bulgaria officially adopted the euro on January 1, 2026, becoming the 21st member of the eurozone. The conversion rate was fixed at 1 EUR = 1.95583 BGN.
All salaries, contracts, and financial obligations are now denominated in euros. The minimum wage was simultaneously increased to €620.20 per month, representing a 12.6% rise to align with EU standards for adequate minimum incomes.
Bank accounts were automatically converted at the official rate, and a dual currency period extends through January 31, 2026, after which the euro becomes the sole legal tender.
How it works
Your Global Hiring Process
We take care of employing your team, so you can focus on growing
You choose the talent
You select the candidate you want to hire, anywhere in the world.
We employ them for you
MB Remote becomes the legal employer and handles contracts, payroll, and local labor laws.
Your team starts working
Your employee works directly with you, just like an in-house team member.
We manage compliance
We ensure ongoing payroll, taxes, and legal compliance in the employee’s country.
Frequently Asked Questions
These are the most commonly asked questions about the Employer of Record
Can’t find what you’re looking for? Get in touch with an expert
Is it free to contact MB Remote?
Yes. Contacting us is completely free and without obligation. We’ll discuss your needs and explain how our EOR solution works before anything else.
How long does it take to hire an employee?
Hiring can usually be completed within a few days, depending on the country and local requirements.
What is an Employer of Record (EOR)?
An Employer of Record is a legal entity that employs workers on your behalf. MB Remote handles contracts, payroll, taxes, and local labor law compliance, while you manage the day-to-day work.
Who is the legal employer of the employee?
MB Remote is the legal employer, but the employee works exclusively for you as part of your team.
In which countries can you hire employees?
We support hiring in multiple countries. Contact us to check availability for a specific location.
How does payroll work?
We manage payroll, taxes, and social contributions in compliance with local regulations. You receive one simple monthly invoice.
Is my company still in control of the employee?
Yes. You manage tasks, schedules, and performance. We handle the legal and administrative side.