Bulgaria is a country in Eastern Europe and part of the Balkans, neighbors include Romania, Serbia, Macedonia, and the Black Sea. Bulgaria is considered a developing country with an upper-middle-income economy. The worker-employer relationship is governed by the Bulgarian Labour Code, regardless of nationality.

Types of Contracts

• Indefinite
• Fixed Term - the practice is to be signed for up to 3 years, with no minimum restrictions.
• Part time contracts

Working Hours

Standard working hours are 40 hours per week and 8 hours per day. Overtime is allowed at a maximum of 3 hours per day and 6 hours per week, and is paid at 150% of the regular rate. Work during the weekend is paid at 175% of the regular rate and for public holidays it’s 200%.

Minimum Wage

The general minimum wage in Bulgaria is BGN 833 per month.

Probation Period

The maximum probation period length in Bulgaria is 6 months.

Taxes & Local Employment Costs

Employee Taxes

• Pension fund - SSIF - 6.58%
• Additional Pension fund - 2.20%
• Health insurance - 3.20%
• Sickness & Disability ins. - SSIF - 1.40%
• Unemployment fund - SSIF - 0.40%

Employer Taxes & Contributions

• Pension fund - SSIF - 8.22%
• Additional Pension fund - 2.80%
• Health insurance - 4.80%
• Sickness & Disability ins. - SSIF - 2.10%
• Unemployment fund - SSIF - 0.60%
• Industrial Accident fund - 0.50%

Annual Leave (Vacation)

By law an employee in Bulgaria should take at least 20 days of paid leave per year. Annual leave is pro-rated in the first year of employment (20 days / 12 = 1.8 days per month).

Sick Leave

Employees in Bulgaria can take sick leave for up to 18 months. The first 2 days are paid by the employer at 70% of the employee's salary, and the rest is paid by social security at 80%-90% of the salary.

Maternity Leave

Employees in Bulgaria are entitled to 365 days of maternity leave paid by the state, which can be extended for a 2 year leave (pay is reduced in the second year).

Paternity Leave

Employees in Bulgaria are entitled to a fixed 14 days of paternity leave paid by the employer.

Public Holidays

• New Year’s Day - January 1
• Liberation Day - March 3
• Good Friday - Friday before Easter
• Easter Monday - Day after Easter Sunday
• Labor Day - May 1
• Saint George's Day - May 6
• Culture and Literacy Day - May 24
• Unification Day - September 6
• Independence Day - September 22
• Christmas Eve - December 24
• Christmas Day - December 25
• Second Day of Christmas - December 26

Termination Process

There are multiple types of termination in Bulgaria:

1. Mutual ground - agreed by both sides

2. Termination by the will of the employer - depends of the reason/ground for termination

• Underperformance: needs to be proved with evidences where the employee showed underperformance. It is the hardest way of terminting where the Labor Agency can do checks of the validity of the termination
• Redundancy - possible to terminate but to be checked on a case by case basis
• Economic reasons - possible to terminate but to be checked on a case by case basis

Notice Period

The minimum notice period outside of probation is 1 month. During probation, no notice period is required.

Severance Pay

While there is no statutory severance pay requirement, employees who are terminated due to redundancy should receive payment equal to 1 month salary in the case of individual or collective dismissal. If the termination is without cause, the severance payment is commonly 4 months salary.

Bulgaria does not require a 13th-month bonus to be paid out, but it is common for employers to offer based on their own internal rules.