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Bulgaria is one of the most attractive hiring destinations in Eastern Europe, offering a skilled, multilingual workforce at competitive costs. Its strategic location, strong digital infrastructure, and favourable tax system make it an ideal market for remote hiring and business expansion.
Bulgaria offers a growing tech and services sector supported by high educational standards and low employment costs. Its labour laws require employers to follow specific rules around minimum wage, contract types, and tax withholdings.
Get details on Bulgaria’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.
Employment contracts in Bulgaria must be in writing and registered with the National Revenue Agency. Both fixed-term and indefinite contracts are allowed and must clearly state the terms of employment, rights, and obligations.
Notice periods: Vary between 30 days to 3 months, based on the contract.
Termination of employment: Can be by mutual agreement, with notice, or immediate dismissal under specific conditions.
Want to learn more about employment contracts in Bulgaria? Get our full template now!
Bulgarian employers are required to provide a set of mandatory benefits as outlined by the national labour laws. In addition to these legal obligations, many employers also choose to offer extra perks to remain competitive in the job market and attract top talent.
Mandatory benefits: Social security contributions, health insurance, and unemployment insurance.
Common perks: Meal voucher, flexible working hours, unlimited paid time off, private pension schemes, Restricted Stock Units (RSUs)
Leave policies: Annual leave, sick leave, maternity leave, paternity leave, parental leave, unpaid leave.
Want to learn more about all the employee benefits available in Bulgaria?
Bulgaria’s tax system is business-friendly, with a flat income tax rate and well-defined employer responsibilities including withholding and paying income tax on behalf of their employees, calculating and submitting mandatory social security and health insurance contributions, and issuing annual earnings statements.
Want to find out more about Bulgaria’s tax allowances and similar tax regulations? Click here to read more now!
Employers in Bulgaria must adhere to strict payroll deadlines and follow clearly defined procedures to ensure compliance with national labour and tax regulations. This includes accurately calculating gross and net salaries, withholding the correct amount of income tax and social security contributions, and making timely payments to the relevant authorities.
Salary payment deadline: By the 5th of the following month.
Taxes and contributions payment deadline: Annually by April 30.
Payroll declarations deadline: Employee Earnings Statements are due by January 31.
Payroll currency: Bulgarian Lev (BGN)
The Bulgarian Labour Code governs all aspects of employment, including work conditions, wages, probation, and termination. Employers must comply with these regulations to avoid penalties and ensure fair labour practices.
Total employment cost:
Minimum wage: BGN 1,077 per month
Probation period: Up to 6 months
Non-EU citizens need a work permit to work in Bulgaria, while EU/EEA citizens can work without one. Visa and permit requirements vary by nationality, job type, and duration of employment.
Types of permits: EU blue card and work permit
Process length: Three to four months
Process cost: Starts at* 3000 EUR
*Please note that additional costs may apply after reviewing individual use cases.
Want to learn more about obtaining visas and work permits in Bulgaria? Get our full country handbook now, or click here to find out more!
Using EOR services in Bulgaria allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:
Using PEO services in Bulgaria provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Bulgaria but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per Bulgaria’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Bulgaria with our localised calculator. Designed to meet all payroll and compliance requirements.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: July 30, 2025
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Freelancers and gig workers in Bulgaria are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf.
However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.
