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Hiring in Bulgaria through an Employer of Record (EOR)

Bulgaria

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Discover what you need to know about employment laws, regulations, and Employer of Record (EOR) in Bulgaria.

Looking to hire in Bulgaria? An EOR can help

Expanding into Bulgaria? An Employer of Record (EOR) service allows you to recruit, onboard, and manage employees without the need to set up your own legal entity.

An EOR acts as the official employer for your staff, managing local recruitment, payroll administration, benefits provision, and tax compliance – all in line with Bulgarian labor regulations.

Utilizing an EOR to simplify and automate the management of global employees allows you to sidestep the intricacies of international employment law and focus on growing your business.

How to hire in Bulgaria

Step 1: Choose between creating an entity and using an EOR


When hiring in Bulgaria, you have two main options: 1) Establishing a local entity or 2) Utilizing an EOR service.

Creating a local entity offers more control over your business operations in the long run but involves a significant investment of time, money, and effort. You have to register your business with the Bulgarian authorities, appoint directors, and deal with complex tax laws.

This process can extend over several weeks or even months, potentially hindering your hiring plans in Bulgaria. Additionally, setting up an entity means you must comply with all local employment regulations directly.

On the other hand, using an EOR service allows you to bypass the intricacies of Bulgarian employment laws. You can quickly onboard new employees and streamline essential HR functions.

Typically, if you plan to have a substantial workforce and a long-term presence in Bulgaria, establishing a local entity could be beneficial. However, if you want a quicker and more straightforward way to hire in Bulgaria, an EOR is the more practical solution.

Step 2: Finding the right EOR

Selecting the right EOR for your business requires careful consideration of several key factors. Choosing the wrong provider can lead to compliance issues, unnecessary costs, and a poor experience for your new hires. Here’s what to consider:

  • Legal compliance: Ensure the EOR has a deep understanding of Bulgaria’s labor laws, employee protections, tax regulations, and localized benefits. Investigate their track record and inquire about their experience with industry-specific scenarios.
  • Customer service: Evaluate whether the EOR offers continuous support. For example, Multiplier provides 24/7 personalized support (no automated systems) and assigns dedicated managers to each account.
  • Transparent pricing: Be cautious of EOR services with low initial costs but hidden fees or complicated pricing structures. Make sure to clarify all associated costs upfront before making your decision.
  • Total cost of ownership: The cheapest option isn’t always the best as less expensive solutions can end up costing more if they prove ineffective. Ensure that the EOR you choose offers a quality service that fits within your budget without sacrificing essential features.

Step 3: Employing and onboarding in Bulgaria

Send over the contract

Once you’ve found the perfect candidate and chosen the right EOR, the next step is to send them a locally compliant employment contract. Multiplier can generate contracts that adhere to Bulgarian law in under five minutes.
You can tailor the employment terms, including job responsibilities, working hours, compensation, and termination conditions.
After the contract is prepared, your EOR will securely send it and obtain the necessary signatures.

Offer competitive benefits

Want to support your employees with a competitive benefits package? Rather than navigating local vendors on your own, a skilled EOR offers several locally managed package options. An EOR can also ensure that employees receive the necessary IT assets to begin their work.

Get all your documentation in order

When onboarding employees in Bulgaria, you’ll need to collect your new hire’s tax and banking information. If you’re using an EOR like Multiplier, this information will be automatically gathered to set up payroll. Multiplier handles all necessary documentation, ensuring a seamless process.

Step 4: Run payroll for employees based in Bulgaria

Handling payroll for employees based in Bulgaria involves meticulous attention to local tax regulations and mandatory contributions. Bulgaria has a flat income tax rate of 10%, which applies uniformly regardless of income levels.

Employers are also required to make mandatory contributions to the National Social Security Institute (NSSI) and the National Health Insurance Fund (NHIF).

The NSSI is Bulgaria’s public pension system, aimed at providing retirement benefits. Employers must contribute a fixed percentage of an employee’s salary to their NSSI account to ensure employees are well-prepared for retirement.

The NHIF offers health coverage for all residents, including employees. Employers must contribute to this fund, which supports healthcare services and ensures employees have access to necessary medical care.

Navigating these regulations can be intricate and time-consuming, particularly for multinational companies managing a workforce in Bulgaria.

Employing an EOR like Multiplier streamlines this process by managing precise and timely salary payments, while also handling all local taxes, contributions, and withholdings. With Multiplier’s global payroll solution, you can efficiently manage payroll for all your international employees from a single platform, eliminating the need to deal with multiple local providers.

Employment laws and regulations in Bulgaria

Bulgaria has a complex framework of regulations governing employment. Here’s a summary of key employment laws and regulations you should be aware of:

  • Labour code: This legislation regulates employment conditions, including working hours, rest periods, overtime pay, and termination procedures. It establishes fair treatment standards and defines the minimum requirements for employment contracts.
  • Written employment contracts: Employers must provide written contracts outlining job responsibilities, salary, working hours, and conditions for termination.
  • Social Security Code: This code ensures that employees receive social security benefits, including unemployment support. Employers contribute to the Social Security Fund, which provides financial assistance and job-seeking resources for unemployed individuals.

By understanding these laws and protections, you can ensure compliance with Bulgarian employment regulations when hiring and managing staff.

Employ top talent in Bulgaria through an EOR

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Employee benefits and compensation

In Bulgaria, the current minimum wage stands at BGN 933 per month. Bulgarian labor laws also prescribe several standard employment incentives, including:

  • Annual leave: Employees are entitled to a minimum of 20 days of paid annual leave, which can increase based on years of service or company policy.
  • Sick leave: Employees are eligible for paid sick leave, with the rate of compensation determined by the Social Security Code. Typically, employees receive 70% of their average earnings during sick leave, funded through social security contributions.
  • Parental leave: Bulgaria provides paid parental leave of up to 410 days, which can be shared between parents. This includes maternity leave for new mothers and parental leave that both parents can use to care for their child.

Employers often offer additional benefits beyond these statutory requirements to attract and retain top talent. Explore Multiplier’s global benefits administration to deliver locally compliant and competitive benefits to your international employees.

Termination and offboarding procedures

When terminating employment in Bulgaria, employers must adhere to regulations concerning notice periods and severance pay. The typical notice period is generally 30 days, though it may vary depending on the specifics outlined in the employment contract.

Severance pay is required under Bulgarian law, usually amounting to one month’s salary for each year of service, unless otherwise specified in the employee’s contract or as per statutory provisions.

In cases of redundancy, such as during organizational restructuring or economic difficulties, specific procedures must be followed. Employers may choose to provide compensation in lieu of notice rather than requiring the employee to work through the notice period, provided this is clearly stipulated in the employment contract.

Navigating these procedures can be intricate and time-consuming, especially for international employers unfamiliar with Bulgarian labor laws.

An EOR, like Multiplier, can greatly streamline this process. By managing offboarding procedures, an EOR ensures that all termination activities comply with local regulations and facilitate a smooth transition for both the employer and the departing employee.

Visa and work permit assistance

Hiring foreign workers in Bulgaria requires obtaining the appropriate visas and work permits. The type of visa needed varies based on factors such as the nature of the job, the duration of employment, and the employee’s nationality.

Here are the main visa categories for working professionals in Bulgaria:

  • Type D Long-Term Visa: Suitable for individuals planning to work in Bulgaria for more than 90 days. It is often used for specialized roles and long-term employment.
  • EU Blue Card: Designed for highly skilled non-EU workers in professions requiring advanced qualifications. It provides a pathway to long-term residency and is valid for up to four years.
  • Single Permit: This permit combines both work and residence authorization and is intended for non-EU nationals who are employed by Bulgarian companies in various sectors.
  • Seasonal Work Visa: For foreign workers employed in seasonal jobs, such as agriculture or tourism. This is typically valid for up to 6 months.
  • Intra-Company Transfer Visa: For employees transferring from a foreign branch of a multinational company to a Bulgarian branch.
  • Student Visa with Work Rights: For international students who wish to work part-time while studying in Bulgaria.
  • Highly Qualified Employment Visa: For professionals in specialized fields who meet specific qualification criteria and have a job offer from a Bulgarian employer.

Given the complexities of visa applications and renewals, expert assistance is highly advisable. Multiplier offers comprehensive support for work permits and visas as part of its Employer of Record (EOR) services.

For more details on how we manage global immigration challenges, please visit our Global Immigration page.

Get started with Multiplier’s EOR services

Multiplier’s Employer of Record (EOR) services offer a powerful solution for expanding your workforce in Bulgaria. With Multiplier, you can employ individuals without the need to set up a local entity, while simplifying all HR functions and delivering an exceptional employee experience.

Our EOR services streamline the entire hiring, onboarding, and management process. We take care of every aspect of employment, including creating contracts that comply with Bulgarian regulations, managing payroll and taxes, and providing a range of customizable benefits that meet local standards. This approach alleviates your compliance concerns and reduces administrative burdens.

Schedule a demo to see how Multiplier can make HR management easier and ensure compliance in Bulgaria.

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