What should I know about hiring in Bulgaria?
Being familiar with the country’s labor laws is essential when hiring in Bulgaria. This includes understanding the minimum wage, vacation, sick days, and other employee rights. Familiarizing yourself with these laws will help you avoid any potential legal problems.
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 are required to deduct and pay over employees’ share of federal income tax. As a European Union member, Bulgaria’s labor laws and regulations largely align with EU standards.
Why is Bulgaria a good choice for finding remote employees?
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.
Numerous Bulgarians have advanced degrees and years of work experience in their respective fields. Additionally, Bulgaria has a good infrastructure. This includes a high-speed internet connection, essential for any remote worker.
The country also has a sound transport system, which makes it easy for remote workers to travel to and from work. The people are warm and welcoming, and the government is supportive of foreign investment. This makes Bulgaria an attractive destination for foreign companies looking to set up remote operations.
How can Native Teams help you hire in Bulgaria
Working with Native Teams is beneficial if you are unfamiliar with the local language or work customs. You can count on Native Teams to help you every step of the way through the hiring process. When you use Native Teams as your employer of record in Bulgaria, we’ll handle everything from hiring new employees to ensuring they’re paid, taxed, and provided for in accordance with local law.
Hire your first Bulgarian employee with Native Teams.
Legal requirements for hiring in Bulgaria
In Bulgaria, the monthly minimum wage is 780 BGN.
Contributions & taxes
The cost to the employer is frequently estimated to be between 9 and 19% of the employee’s income.
- Pension Fund: 13.72%;
- Health Insurance: 4.80%;
- Occupational Accident and Disease Fund: 0.40%;
- Labor Safety Company Insurance: 25.00 BGN.
Corporate income tax (CIT) is levied at a fixed rate of 10% on corporate income.
Employees are required to contribute 13.78% to Social Security.
Every individual income is subject to a 10% tax rate.
To calculate the salary and taxes in Bulgaria please click here.
Salaries are usually paid in Bulgaria once every month on the 5th of the following month.
Is there a 13th salary in Bulgaria?
Bonuses are possible for workers in Bulgaria, usually in the form of a 13th-month payment. It is considered a gratuity and is not required by local labor laws.
The employment agreement can specify a probationary period of up to 6 months.
There is a minimum 30-day notice requirement for either party, which can go up to 90 days.
When relevant, severance pay is mandated by law in Bulgaria. The sum of the reason for termination varies. Severance compensation is typically four months’ worth of income (gross) and is distributed as soon as possible following termination (often within seven days).
Unless specified in the employment contract, severance pay for redundancy due to a company downsizing decision is typically one month’s salary.
The standard workweek is 40 hours 8 hours a day, five days a week, Monday to Friday. The standard workday schedule runs from 9:00 AM to 6:00 PM, with an optional one-hour lunch break. However, the specifics of this will depend on the nature of the corporation and its agreements.
Leave and benefits
Bulgaria has 13 national holidays, including:
- New Year’s Day
- Bulgaria Liberation Day
- Good Friday
- Labour Day
- Orthodox Easter
- Orthodox Easter Monday
- Day of Slavonic Alphabet, Bulgarian Enlightenment, and Culture
- Unification Day
- Independence Day
- Eastern Orthodox Christmas Eve
- Orthodox Christmas Day
- Second Day of Christmas
A maximum of 180 paid sick days are available to employees. The employer pays for the first three days at 70% of the salary. On the fourth day, the National Insurance Institute starts to pay its employees 80% of their wages.
Maternity leave & paternity leave
Pregnant female employees are eligible for 410 days of paid leave, 45 of which must be taken before the birth of the child. The National Social Security Fund compensates working mothers for 90% of their regular salary on maternity leave.
The father is eligible for 15 days of paid paternity leave following the birth of his child. At the 6-month mark, the father can utilise any remaining maternity leave with the mother’s approval.
For the purpose of attending a family member’s funeral, employees are granted two days of absence.
After an employee’s maternity leave has finished, they are eligible for paid parental leave until their child turns 2. There are 2 full calendar years for the first 2 kids and 1 full year for the third. You can add 6 months for every child you have after the first.
The rights of adoptive parents are the same as the rights of biological parents, with the exception of the 45 days taken before giving birth for children adopted younger than 5 years of age from the date of adoption.
In the case of their marriage, employees are entitled to 2 days of paid leave.
What are the minimum vacation days?
In Bulgaria, paid leave is stipulated in the job contract at least 20 days per year, beginning after 4 months of employment.
Health security & private insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
Why use Native Teams for hiring in Bulgaria?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.