Expand your global workforce in Bulgaria
Your guide to the employment landscape, working customs and local labor laws in Bulgaria
Capital
Sofia
Currency
Bulgarian Lev (BGN)
Languages
Bulgarian, Turkish, Romani
GDP per Capita
$12,505
Employer Tax
19.32% - 20.72%
Payroll Frequency
Monthly
Talent overview
Bulgaria, a land of rich culture and folklore, is a developing country in the south-eastern part of Europe, with an upper-middle income economy. A part of the European Single Market, the prominent sectors are service and industry. The private sector contributes more than 70% of Bulgarian GDP. In 2021, Bulgaria ranked 35th in the Global Innovation Index published by the World Intellectual Property Organization (WIPO) for the innovative accomplishments of the country.
Major economic hubs:
Sofia, Plovdiv
Skills in demand:
Professionals, Skilled workers
Bulgaria
Top local universities in Bulgaria
Sofia University St. Kliment Ohridski
Ranking
Local: 1
World: 942
New Bulgarian University
Ranking
Local: 2
World: 1953
Technical University of Sofia
Ranking
Local: 3
World: 3151
Medical University-Varna
Ranking
Local: 4
World: 3723
American University in Bulgaria
Ranking
Local: 5
World: 3833
Top Local Job Boards
Karieri.bg, jobs.bg, jobtiger.bg, Zaplata.bg, DEV.bg, Buljobs.bg
Number of LinkedIn users
1,030,000
Multiplier Recruitment Partner
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
Salary Data
The table mentions the average annual salary in Bulgaria
| Job Title | Average Annual Salary (BGN) | Average Annual Salary (USD) |
| Executive Management and Change | 107,950 BGN | $58560 |
| Finance Control and Strategy | 62,725 BGN | $34026 |
| Sales and Business Development | 55,748 BGN | $30242 |
| IT and Software Development | 47,030 BGN | $25512 |
| Consulting, Accounting and Professional Service | 45,285 BGN | $24566 |
| Human Resource | 26,126 BGN | $14172 |
Employ in Bulgaria
Employing in Bulgaria
According to Bulgarian labor law, employees are classified into three categories – one, two, and three. The third category is the most popular and has favorable working conditions. The Council of Ministers does the segregation of employees.
Employee Contract
Employment contracts signed by both employer and employee can be in any language. However, the Bulgarian authorities can request a copy of the Bulgarian translation (if needed).
Probation period
In Bulgaria, the probation period is up to six months.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| March 3 | Liberation Day | National Holiday |
| April 18 | Good Friday | National Holiday |
| April 19 | Holy Saturday | National Holiday |
| April 20 | Easter Sunday | National Holiday |
| April 21 | Easter Monday | National Holiday |
| May 1 | Labor Day | National Holiday |
| May 6 | St. George’s Day | National Holiday |
| May 24 | Culture and Literacy Day | National Holiday |
| May 26 | Day off for Culture and Literacy Day | National Holiday |
| September 6 | Unification Day | National Holiday |
| September 8 | Day off for Unification Day | National Holiday |
| September 22 | Independence Day | National Holiday |
| December 24 | Christmas Eve | National Holiday |
| December 25 | Christmas Day | National Holiday |
| December 26 | Second day of Christmas | National Holiday |
Employee Leaves
| Type of leave | Time Period | Mandatory |
| Annual leave/Earned Leave | 20 days | Yes |
| Sick Leave | 18 Months | Yes |
| Maternity Leave | 410 days | Yes |
Leave Compliance
Payroll in Bulgaria
Payroll cycle
In Bulgaria, salary administration is managed every month, with salaries paid on the last working day of each month.
Minimum wage
The monthly minimum wage for employees in Bulgaria is BGN 1,077 (Bulgarian lev).
Overtime pay
Work done beyond normal hours is compensated as per the mutually accepted employment contract. Also, there are maximum limits put in terms of working hours for the extra.
Read more
How taxes work
Employer Payroll Tax:
Employers have to make the following contributions to every employee they maintain.
| Scheme | Employer’s Contribution |
| Pensions Fund | 8.88% |
| Additional Pension Insurance | 3% |
| General Disease and Maternity Fund | 2.10% |
| Unemployment Fund | 0.60% |
| Accident at Work and Occupational Diseases Fund | 0.4-1.1% |
| Health Insurance | 4.80% |
Employee Payroll Tax:
Every employee is entitled to a monthly salary, from which the following contributions will be made.
| Scheme | Employee’s Contribution |
| Pensions Fund | 5.92% |
| Additional Pension Insurance | 2% |
| General Disease and Maternity Fund | 1.40% |
| Unemployment Fund | 0.40% |
| Accident at Work and Occupational Diseases Fund | – |
| Health Insurance | 3.20% |
Employee Income Tax:
In Bulgaria, the income earned is taxed at a flat rate. Tax residents have to pay for their worldwide income, while non-residents only pay for their income sourced from Bulgaria.
| Category | Income Tax Rate |
| Income from employment relationships | 10.00% |
| Income from business activity as a sole proprietor as well as other business activities | 15% |
| Income from dividends and liquidation shares | 5.00% |
| Income from interest on bank accounts | 8.00% |
| Income of non-resident persons from a source inside Bulgaria | 10% |
| Income from any cash prizes and merchandise awards awarded at competitions and contests which are not provided by an employer or a commissioning entity | 10.00% |
VAT
The standard VAT rate in Bulgaria is 20%.
Bonus
13th Month Pay
There is no legal provision for the 13th-month salary.
Employee Benefits
- Social Security
- Health Insurance
- Accident Insurance
Employee offboarding
Bulgaria maintains a standard process for termination based on the reasons listed in the labor law. The termination notice must be communicated in writing and sent to relevant government departments.
Legally, the notice period is 30 days, but in common practice, it can even be 90 days.
The pay varies based on the termination type, but severance pay is mandatory when applicable. The amount of severance should not be less than four months’ gross salary and has to be paid no later than seven days after the termination.
Visa and
immigration
The essential documents to obtain if you are planning to work in Bulgaria:
- Work Permit
- Type D Visa
- Residence Permit
Your employment toolkit for Bulgaria
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Overtime Pay
Minimum Wage
Overtime Pay
| Overtime working hours | Compensation |
| Hours >40 on weekdays | 150% of employees’ standard salary rate |
| Overtime during weekend hours | 175% of employees’ standard salary rate |
| Hours worked on public holidays | 200% of employees’ standard salary rate |
Visa and Immigration