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Being familiar with Bulgaria’s labour laws is essential when hiring. This includes understanding the minimum wage, vacation, sick days, and other employee rights. Familiarising yourself with these laws will help you avoid any potential legal issues.
In Bulgaria, both the employer and employee are required to put the terms of the employment relationship in writing. This includes the start and end dates of the agreement, as well as the compensation and duties of each party. Each party (employer and employee) must physically sign the contract.
Healthcare, retirement, and other benefits are paid for through social security contributions, which are paid for by both employers and employees. Companies must deduct and pay employees’ share of federal income tax. As a member of the European Union, Bulgaria’s labour laws and regulations largely align with EU standards
Bulgaria is worth considering if you want to set up a remote team or expand your existing one. With its low costs, skilled workforce, and favourable business environment, it’s an ideal location for finding the right employees for your company.
Many Bulgarians have advanced degrees and years of experience in their fields. Additionally, Bulgaria has good infrastructure, including a high-speed internet connection, which is essential for any remote worker.
The country also has a strong transport system, making it easy for remote workers to travel to and from work. The people are warm and welcoming, and the government supports foreign investment. This makes Bulgaria an attractive destination for foreign companies looking to set up remote operations.
Native Teams’ Employer of Record services help you hire and pay your team through an owned infrastructure in Bulgaria. We handle everything from legal employment to ensuring your team is paid and managed compliantly and with care, without any third parties involved.
Hire your first Bulgarian employee with Native Teams.
Hiring new employees in Bulgaria requires following a certain set of legal requirements. The section below will outline them in greater detail.
Employment relationships in Bulgaria are governed by several key pieces of legislation, including the Labour Code, Code on Social Security, Protection Against Discrimination Act, Law on Health and Safety at Work, and Law on Collective Labour Disputes.
The Labour Code is the primary framework for employment law and regulates key aspects of the employer-employee relationship. These include the establishment and termination of employment, employee and worker associations, employers’ financial liability, protections for certain categories of employees, compliance supervision, and administrative liability for non-compliance.
Employers are required to ensure equal treatment of all employees, including equal pay for men and women. Temporary, agency, and part-time employees must also receive the same treatment as permanent, full-time employees.
These principles are further supported by the Protection Against Discrimination Act, which regulates equal treatment in employment and prohibits different forms of discrimination.
Employment contracts in Bulgaria are regulated by the Bulgarian Labour Code. The two primary types are indefinite (open-ended) contracts and fixed-term contracts.
Indefinite employment contracts
An employment contract is considered to be concluded for an indefinite period unless otherwise expressly agreed. An indefinite contract cannot be converted into a fixed-term contract unless the employee explicitly requests this in writing.
Fixed-term employment contracts
Fixed-term employment contracts may be concluded:
As an exception, a fixed-term contract of at least one year may be concluded for work that is not temporary, seasonal, or short-term. A shorter period may be agreed upon at the employee's written request. In these circumstances, a fixed-term contract with the same employee for the same role may be renewed only once, for a period of at least one year.
If a fixed-term contract is concluded contrary to the requirements of the Labour Code, it is considered to have been concluded for an indefinite period.
A fixed-term contract also becomes indefinite if the employee continues working for five or more working days after the agreed end date without written objection from the employer, provided the position remains vacant. This also applies to contracts used to replace an absent employee if the employment of the person being replaced ends during their absence.
An employment contract in Bulgaria should clearly define the employment relationship and include the identification details of both parties.
At a minimum, the contract should specify:
For certain terms, including the place of work, termination notice, and paid leave, statutory provisions apply automatically if no specific arrangement has been agreed.
Failure to include the required information in an employment contract may result in legal consequences, including financial penalties or disputes.
Download a free employment contract for Bulgaria through Native Teams.
Employment contracts in Bulgaria must be concluded in writing and signed either with a handwritten signature or a qualified electronic signature.
Employers must record employment-related events, including the commencement, amendment, and termination of employment, through the mandatory electronic employment record system. The electronic register is now the primary employment record, replacing the traditional paper labour book.
Employers must also notify the relevant territorial directorate of the National Revenue Agency within three days of entering into or amending an employment contract and within seven days of its termination. These notifications must include the relevant information about the terms and conditions of employment.
Authorised Labour Inspectorate officials have real-time electronic access to the employment contract register. Upon request, the National Revenue Agency must also provide certified copies of relevant notifications within three working days.
Failure to comply with these requirements may result in administrative sanctions.
The standard working week in Bulgaria is 40 hours, with a standard working day of eight hours. For shift work, individual shifts cannot exceed 12 hours.
Different working time arrangements may also be used, including flexible schedules, open-ended working hours, shift work, part-time work, on-duty, and on-call arrangements. These arrangements must be set out in the Internal Labour Regulations.
Working time may be calculated daily or over periods ranging from one to four months, depending on the method used. Generally, work performed beyond the standard eight-hour working day is considered overtime, unless an open-ended working time arrangement applies.
In Bulgaria, night work is defined as work performed between 10:00 PM and 6:00 AM the following day. For a standard five-day working week, weekly night work is limited to 35 hours, with individual night shifts limited to seven hours.
Certain categories of employees are restricted from performing night work. These include:
Employees in Bulgaria are entitled to breaks and rest periods during which they are not required to perform their work duties.
The duration of the lunch break must be specified in the employer’s internal regulations and cannot be shorter than 30 minutes.
Employees are also entitled to a minimum daily rest period of 12 hours.
For a standard five-day working week, the weekly rest period consists of two consecutive days, or 48 hours. Where working time is calculated on a summarised basis, the minimum weekly rest period may be reduced to 36 hours. For shift work under a summarised working time arrangement, the rest period cannot be shorter than 24 hours.
Employees in Bulgaria are entitled to a minimum of 20 working days of paid annual leave. Additional annual leave may be provided through individual employment contracts or collective agreements.
Employees starting employment for the first time can use their paid annual leave after completing at least eight months of employment service.
Employees who work fewer than four hours per day are entitled to paid annual leave on a pro rata basis.
Employees working under specific conditions involving unavoidable risks to life and health, as well as employees with open-ended working hours, are entitled to at least five additional working days of paid leave.
Any unused paid annual leave is carried forward to subsequent years.
In Bulgaria, the Council of Ministers sets the national minimum wage through official decrees. Following Bulgaria’s accession to the eurozone on 1 January 2026, statutory wages are denominated in euro.
As of 1 January 2026, the national minimum wage is EUR 620.20 per month (equivalent to BGN 1,213), while the minimum hourly wage is EUR 3.74.
Collective bargaining agreements may set higher minimum remuneration for specific sectors or categories of employees. Any contractual or collective bargaining provision that provides less favourable conditions than those established by mandatory law or another binding collective agreement is considered null and void.
Employers generally cannot unilaterally change the terms and conditions of an employment contract, except where specifically permitted by law. This includes unilateral increases in remuneration where legally allowed.
Employment contracts that remain denominated in Bulgarian lev remain valid following the introduction of the euro. However, employers and employees are strongly encouraged to sign a supplementary agreement converting the contractual remuneration into euro to provide clarity and simplify payroll administration.
To calculate the salary and taxes in Bulgaria, click here.
Temporary incapacity for work in Bulgaria must be supported by a medical certificate issued by a general practitioner or a medical consultation committee.
For the first three working days of sick leave, employees are entitled to compensation of up to 70% of their gross daily remuneration for the month in which the incapacity occurs.
After the first three working days, daily sickness benefits for temporary incapacity amount to either 80% or 90% of the employee’s average gross daily remuneration or average daily insurable income on which social security contributions were made during the 18 months preceding the incapacity.
Sick leave compensation is calculated based on the employee’s average salary, regardless of the source of payment.
After pregnancy, childbirth, or adoption leave ends, a female employee is entitled to additional parental leave until the child reaches two years of age, provided the child has not been placed in a childcare facility.
With the mother’s or adoptive mother’s consent, this leave may be transferred to the father or adoptive father, or to one of their parents, provided that the person taking the leave is employed under an employment relationship.
If the biological or adoptive mother of a child under two dies or becomes seriously ill and is unable to care for the child, the father may take the leave.
With the father’s consent, the leave may also be transferred to one of the grandparents, provided they are employed and have paid social security contributions for pregnancy and general illness for at least 12 months.
Female employees in Bulgaria are entitled to 410 days of paid maternity leave.
Employed and self-employed fathers are entitled to 15 days of paternity leave, starting from the date the child is discharged from the medical establishment. With the mother’s consent, once the child reaches six months of age, the father may take the remaining portion of the 410-day leave instead of the mother.
Subject to certain restrictions, fathers of children aged eight or younger may also be entitled to up to two additional months of leave. Time spent on this leave is considered part of the employee’s length of service.
Financial compensation during paternity leave amounts to 90% of the employee’s average gross monthly earnings or average insured income for the 24 months preceding the child’s birth. This entitlement also applies to self-employed fathers.
Following Bulgaria’s adoption of the euro on 1 January 2026, statutory benefits are denominated in euro. Paternity benefits cannot be lower than the national minimum monthly wage of EUR 620.20 and are subject to the statutory maximum monthly insurable income of EUR 2,111.64
In Bulgaria, an employment contract may generally be terminated by either the employer or the employee, subject to the applicable legal requirements and the terms of the employment agreement.
Employers must have a valid reason for terminating an employment contract, and employees have the right to challenge the validity of a dismissal in court.
During a trial period, the party in whose favour the trial period was agreed may terminate the employment contract without notice before the trial period expires.
Employees can generally terminate their employment without providing a reason, but they must observe the notice period required by law or specified in their employment contract.
In Bulgaria, an employer may terminate an employment contract where there is a valid reason for dismissal. Depending on the circumstances, termination may take place with prior notice or, where applicable, without notice.
Grounds for ordinary termination by the employer include:
When an employment relationship ends, the employer must issue an order of discharge or another document confirming the termination.
For an indefinite employment contract in Bulgaria, the standard notice period is 30 days. The employer and employee may agree to a longer notice period of up to three months. A collective employment agreement may also determine the notice period based on the employee’s length of service with the same employer.
The notice period begins on the day following receipt of the termination notice.
No statutory notice period applies in cases of extraordinary dismissal. Similarly, termination during a probationary period does not require a notice period.
A party that has received notice may choose to terminate the employment relationship before the notice period expires. In this case, they must compensate the other party with an amount equal to the employee’s gross remuneration for the remaining notice period.
Eligible unemployed individuals in Bulgaria may receive unemployment benefits based on their previous contributory income.
The standard unemployment benefit amounts to 60% of the individual’s average contributory income over the previous 24 months.
Following Bulgaria’s adoption of the euro on 1 January 2026, unemployment benefits are denominated in euros. The minimum daily benefit is EUR 9.20, while the maximum is EUR 54.78 per day. The total monthly amount depends on the number of working days in the relevant month.
Employees who voluntarily terminate their employment without good cause or whose employment ends by mutual agreement are generally entitled only to the minimum unemployment benefit for a period of four months.
The duration and amount of unemployment benefits may also be affected if an individual has previously received unemployment benefits within the applicable statutory reference period, under the Bulgarian Social Security Code.
Severance pay in Bulgaria provides financial compensation to employees following the termination of their employment. However, no general statutory provision requires severance pay in all termination cases.
Employees are entitled to redundancy compensation equivalent to one month’s salary in cases of individual or collective dismissal on economic grounds. This compensation may be extended through decrees of the Council of Ministers, collective labour agreements, or individual employment contracts.
If the employee receives reduced remuneration during the relevant period, they are entitled to compensation for the difference in pay.
Severance pay is not granted in certain cases, including termination due to behavioural infractions and for employees aged 65 or older who have at least 15 years of pensionable service when their employment ends.
In Bulgaria, a probationary period may be agreed as part of the employment contract and cannot exceed six months. Any time during which the employee is on statutory leave or does not perform the agreed work for another valid reason is not included in the probationary period.
The employment contract should specify which party the probationary period is agreed in favour of. If this is not specified, it is considered to apply in favour of both the employer and the employee.
Failure to meet the requirements of the role during the probationary period may provide grounds for termination. The employment contract may be terminated during the probationary period, but no later than its final day.
In Bulgaria, employees generally retain intellectual property (IP) rights to publications, works of art, and other similar creations produced during their employment, unless a different arrangement has been explicitly agreed with the employer.
Although the employee retains ownership of these rights, the employer is automatically granted an exclusive licence to use the work for business purposes, including commercial use.
The employee retains the moral right to be recognised as the author or creator of the work.
Employee data protection in Bulgaria is governed by the EU General Data Protection Regulation (GDPR) and the Bulgarian Personal Data Protection Act (PDPA). The PDPA complements the GDPR and defines the role of the Commission for Personal Data Protection (CPDP), Bulgaria’s national data protection authority.
Employers must have a lawful basis for processing employee personal data, which may include the performance of a contract, compliance with a legal obligation, consent, or legitimate interests, provided these do not override the employee’s rights and freedoms.
Employees must be informed about how their personal data is processed, including the purpose and legal basis for processing, the data retention period, and their rights regarding their data.
Employers should only collect personal data that is necessary for specified, explicit, and legitimate purposes. They must also implement appropriate technical and organisational security measures to protect employee data against unauthorised access, alteration, or destruction.
In Bulgaria, non-competition clauses may be included in employment contracts to prevent employees from disclosing trade secrets or sensitive information to competitors.
These clauses may apply for up to two years after the termination of employment, with the employer required to compensate the employee for the restriction.
Employees are also prohibited from engaging in business activities similar to those of their employer, either for their own benefit or on behalf of another party, without the employer’s explicit consent.
In Bulgaria, remote work may be performed from the employee’s home or another location chosen by the employee outside the employer’s premises.
Remote work may be arranged on a permanent, temporary, or occasional basis where the employer and employee agree to the arrangement and the nature of the work and applicable occupational safety requirements allow it.
Employees working from the employer’s premises may also request an amendment to their employment contract to work remotely for a specified period in order to balance work, family responsibilities, and personal needs.
When an employee begins working remotely, the employer must prepare an addendum to the employment contract setting out the specific conditions, rights, and obligations of both parties.
In extraordinary circumstances, such as disease epidemics, earthquakes, or floods, employers are required to introduce remote working to maintain business operations and protect health and safety. In these circumstances, the employment contract does not need to be amended.
Employers and employees in Bulgaria have specific rights and responsibilities when working remotely, which should be defined in the employment contract.
Remote employees are required to comply with applicable occupational health and safety regulations. They must also allow the employer and relevant regulatory bodies to access the remote workplace for inspection.
Where remote work is carried out in or near a residential building, employees must avoid activities that cause undue disturbance to other property owners or occupants beyond what is normally permitted under the Condominium Ownership Management Act.
Remote employees may determine their own start and finish times and organise their working hours, provided they remain within the applicable statutory limits.
Workplace health and safety in Bulgaria is primarily regulated by the Health and Safety at Work Act (HSWA). Employers must ensure safe and healthy working conditions that help prevent occupational diseases and work-related accidents and support employees’ physical, mental, and social well-being.
Employers must comply with applicable workplace health and safety requirements, including minimum standards relating to factors such as lighting, dust exposure, and specialised protective clothing for certain occupations. Failure to meet these obligations may result in employer liability.
Employees also have a responsibility to comply with established health and safety standards. Failure to follow these requirements may result in disciplinary action.
Hiring employees from Bulgaria offers several distinct advantages that can benefit businesses, particularly those looking to optimise costs while maintaining access to a highly skilled workforce.
Positioned at the crossroads of Europe and Asia, Bulgaria offers easy access to major European markets and serves as a gateway to the Middle East and Asia. The country’s location also provides a favourable time zone that overlaps with many European countries.
Another benefit is that Bulgarian professionals are often well-versed in Western business practices and culture, further enhancing their compatibility with multinational teams.
Native Teams helps you employ and pay your team in Bulgaria directly through owned entities and infrastructure.
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