With its beautiful ruins from three different ancient civilizations and status as a burgeoning tech hub, Bulgaria is a historic Balkan nation poised to play an influential role in the future economy.
Known as the Silicon Valley of Southeastern Europe, Bulgaria is home to an established remote workforce and a burgeoning tech sector, including the government-funded Sofia Tech Park.
Key Takeaways:
- Bulgaria is a growing tech hub with a sizable tech-centered workforce.
- Before they hire employees in Bulgaria, employers need to understand the legal requirements governing contracts, paid leave, and more.
- An Employer of Record like RemoFirst can simplify the process of employing workers in Bulgaria.
Advantages of Hiring in Bulgaria
English is commonly spoken in Bulgaria, with the country ranked 16th on the global EF English Proficiency Index.
In addition, the country's National STEM Center is increasing tech education opportunities in Bulgarian schools, including building over 250 STEM-focused centers. The result — a highly educated workforce able to seamlessly integrate into global teams.
The Bulgarian government is working to grow and support the remote workforce in the country in several ways, including improving internet access. The country is currently ranked 6th worldwide for internet resilience and has committed to solidifying the internet infrastructure by 2030.
Here is a quick overview of Bulgaria:
- Language: Bulgarian
- Currency: Bulgarian Lev (BGN)
- Capital City: Sofia
- Population: 6.8 Million
- Cost of Living Rank: 66th
Growing Tech Sector and Talent Pool for Remote Roles
Bulgaria is an Eastern European tech haven. The capital of Sofia boasts offices for companies like VMWare and IBM and a Bulgarian-language LLM launched in 2024.
Bulgarians are widely recognized for their expertise in call center roles, but the country's remote workforce is rapidly expanding into other sectors, particularly technology.
This includes roles in:
- Software Development
- Digital Marketing
- Information Technology
- Engineering
- Finance
- Data Analysis
Employment Laws: Hiring Compliantly in Bulgaria
Employment Contracts
There are two types of employment contracts in Bulgaria.
- Fixed-term can be for temporary, seasonal, or contract work and can last for a maximum of three years.
- Indefinite contracts do not specify an end date and continue until terminated by either the employer or employee.
Working Hours & Pay
Bulgaria has a standard 40-hour work week and eight-hour work day for full-time employees. As of January 1, 2024, Bulgaria's monthly minimum wage is BGN 933.
Overtime of up to three hours per day and six hours per week is permitted, with overtime paid at 150% of the regular rate. Weekend work is compensated at a rate of 175% and work on public holidays is paid at 200%.
Probation Periods
The employer and employee should mutually agree upon the probation period in Bulgaria. It's optional and can last no longer than six months.
Employer Taxes
In Bulgaria, employers contribute between 18.92%-19.62% of employee gross salaries to support social programs such as:
- Social security
- Health insurance
- Pensions
- Sickness and maternity
- Accident insurance
Termination Process & Severance Pay
Employers can terminate employees for a few reasons, including:
- Mutual agreement
- Underperformance
- Economic reasons
- Redundancy
The notice period is typically one month. In certain instances, employees are entitled to severance pay, the amount of which is determined by the reason for the termination.
Paid Leave Laws in Bulgaria
Vacation and Holiday Leave
Bulgarian workers receive 20 days of paid annual leave. There are also several paid public holidays, including:
- St. George's Day
- Bulgarian Independence Day
- Good Friday
- Easter Monday
- New Year's Day
- Unification Day
Sick Leave
Employees in Bulgaria are entitled to 18 months of paid sick leave.
The employer pays 70% of the employee's salary for the first two days of sickness. If the illness continues, the remaining sick days are covered by social security at a rate of 80% - 90%.
Maternity Leave
Pregnant female employees can take up to 410 days of paid maternity leave — 45 days before the due date, with the remainder taken after birth. Workers receive 90% of their pay while on leave.
Paternity Leave
Fathers with at least a year of service at their employer receive 15 days of paid paternity leave at 90% of their salary.
Why Digital Nomads Love Bulgaria
While Bulgaria doesn't offer a digital nomad visa, remote workers and self-employed freelancers can typically live and work in the country on a Type D visa, which allows stays of up to six months.
Bulgaria is an appealing spot for digital nomads thanks to its low cost of living and easy proximity to the rest of Central Europe.
The Bulgarian tourism industry is especially welcoming, even naming a street Nomad Place in the ski resort town of Semkovo. In addition, the country is home to the largest annual digital nomad festival in the world, Bansko Nomad Fest.
Many nomads enjoy living in the capital, Sofia, which blends local flavor with remote working necessities (like coworking spaces). Digital nomads seeking out smaller cities to explore may want to base themselves out of coastal Varna or charming Plovdiv.
How to Pay Remote Workers in Bulgaria
Whether answering calls in Sofia or providing tech support in Burgas, flexible options are available for paying Bulgarian team members.
- Bank transfers: This option is widely used and compatible with local banks, but fees can be incurred for international transfers.
- Online payment portals: Quick, easy, and ideal for remote workers, although fees for companies like PayPal and Payoneer can add up for companies using this option.
- Cryptocurrency: Lightning-fast, but may not be available for all workers.
One of the best ways to streamline the global payroll process and pay Bulgarian workers is to use an Employer of Record (EOR).
Hire in Bulgaria with RemoFirst
Global companies can partner with an EOR to simplify the hiring, management, and payment of a global workforce.
An EOR acts as the legal employer of international remote employees, ensuring full compliance with local labor laws and regulations while reducing administrative burdens for the company.
Book a demo with RemoFirst to learn how easy it can be to hire, onboard, pay, and manage employees and independent contractors in Bulgaria and beyond.
