Asia
How to hire and pay employees in Pakistan
Find out how to hire and pay employees in Pakistan. Help your business expand into new markets with our Global Payroll & Employer of Record services.
How to hire and pay employees in Bulgaria
Slasify
Jun 21, 2025
| Key Takeaways |
|---|
| 1 Bulgaria is an emerging European hub with competitive labor costs and a skilled workforce, making it ideal for business expansion. |
| 2 Employers must comply with Bulgaria's payroll, tax, and contribution rules, including a flat 10% personal income tax and mandatory social security and health contributions. |
| 3 Payroll is typically semi-monthly or monthly. Wages can be paid in advance or in a lump sum twice a month, depending on the agreement. |
| 4 The national minimum wage is BGN 933 per month with no statutory bonus requirement. |
| 5 Termination rules require written notice, typically 30 days for indefinite contracts. Severance pay depends on the reason for dismissal, ranging from 1 month to 6 months of remuneration. |
| 6 Standard working hours are 40 hours per week with maximum overtime limits. Employees are entitled to rest breaks and weekly rest periods. |
| 7 Employees receive 20 days of paid annual leave plus 14 public holidays. Work on holidays is paid at double rates. |
| 8 Bulgaria provides structured family leave, including 410 days of maternity leave, 15 days of paternity leave, and up to 2 years of parental leave. |
| 9 Probationary periods may last up to 6 months, during which the contract can be terminated without notice. |
| 10 For seamless hiring, payroll, and compliance support in Bulgaria, Slasify provides end-to-end HR solutions across 150+ countries, ensuring operational efficiency. |
Discover the global hiring and employment landscape in Bulgaria – an emerging European hub known for its competitive labor costs and strategic location. With its growing economy, business-friendly policies, and skilled workforce, Bulgaria offers significant opportunities for expansion into the European market.
Personal Income Tax
Personal income in Bulgaria is taxed at a flat rate of 10%.
Local Tax
There are no local taxes on employment income in Bulgaria.
Statutory Contributions
National insurance contributions in Bulgaria include contributions for both social security and health insurance. These apply to Bulgarian nationals and EU/EEA nationals who are not exempted by means of coverage by their home countries' social security authorities.
Non-EU/EEA nationals may be exempted from health insurance contributions if they do not have a permanent residence permit for Bulgaria.
| Minimum monthly base of contributions | Maximum monthly base of contributions |
|---|---|
| Varies depending on the insurer's economic activity, profession and grade | BGN 3,400 |
Employer Contributions
| Contribution rate | Note | |
|---|---|---|
| Health Insurance | 4.8% | |
| Social Security | 14.12%–14.82% | This includes a contribution to the fund covering work-related accidents and occupational illnesses that ranges between 0.4% and 1.1% depending on the economic activity. |
Employee Contributions
| Contribution rate | |
|---|---|
| Health Insurance | 3.2% |
| Social Security | 10.58% |
Payment of Wages
An employee's salary shall be paid either in advance or in a lump sum twice a month, unless otherwise agreed.
Minimum Wage
Effective January 1, 2024, the minimum wage in Bulgaria is set at BGN 933 per month.
Statutory Bonus
There are no statutory bonuses in Bulgaria.
Termination
Generally, the party looking to terminate an employment relationship must give the other party a written notice of termination, with employers being required to justify their dismissal decision with one of the valid reasons stipulated in the Labor Code.
Employers looking to dismiss their employees as a disciplinary sanction for breaches of work discipline must do so by a reasoned order in writing after giving the employee a hearing and assessing the relevant evidence.
In any case, disciplinary sanctions shall be imposed within 2 months after detection of the breach and not later than a year after the commission thereof, though these time limits shall not run during the time in which the employee is on statutory leave or takes part in a strike.
Notice Period
The notice period for an indefinite duration shall be 30 days, unless the parties have agreed on a longer period, but not longer than 3 months.
Where an employer has given a notice of termination, the employee shall be entitled to take an hour off for each day of their notice period. This does not apply to those working for only 7 or less hours per day.
In certain cases, as specified in the Labor Code, either party may seek to terminate their contacts immediately without notice. A compensation for such lack of notice may be payable as follows:
| Employer owing the employee | Employee owing the employer |
|---|---|
| Upon rightful resignation without notice in the cases of Items 2, 3 and 3a of Article 327 (1) of the Labor Code | Upon rightful dismissal without notice for breach of discipline or under Article 330 (1) of the Labor Code by reason of conviction for a criminal offence |
Severance Pay
Employers may dismiss their employees on the grounds of termination in consideration of compensation, which enables the employer to offer their employees at least 400% of their gross monthly remuneration in exchange for terminating their employment contract.
In cases of termination for other grounds, the following applies:
| Reason for dismissal | Compensation |
|---|---|
| Redundancy | 1 month's remuneration |
| Employee's illness, provided that employee has at least 5 years of service** | 2 months' remuneration |
| Employee has become entitled to receive retirement pension | 2 months' remuneration (or 6 months, if the employee has at least 10 years of service) |
** The compensation due when the employee is dismissed due to illness is only paid to employees who have 5 years of work experience and have not receive such compensation in the last 5 years.
Probationary Period
Where the work requires the employee's abilities to be tested, their final appointment may be preceded by a contract providing for a trial period of up to 6 months.
Until the expiry of the trial period, the party to whose benefit it has been agreed may terminate the contract without notice.
Work Time Rules
Standard Working Hours
Standard working hours in Bulgaria are subject to a maximum of 8 hours per day and 40 hours per week.
| Extension of working hours | Reduced working hours |
|---|---|
|
For production reasons, the employer may, by an order in writing, extend the working hours on some working days and compensate said working time on other working days by the respective reduction thereof after advance consultation with the trade union organizations' representatives and the employees' representatives. Extension of working hours are subject to the limitations stipulated in Article 136A of the Labor Code. |
Employees who perform work under specific conditions and where the risks to the life and health thereof cannot be eliminated or reduced regardless of the measures taken, but reduction of the duration of working time leads to containment of the risks to the health thereof shall be entitled to reduced working time. Reduced working time also applies to employees who has not attained the age of 18 years. For more information on the application of this arrangement, refer to Article 137 of the Labor Code. |
Break Period
An employee's working hours shall be interrupted by one or several rest breaks of at least 30 minutes for a meal, the time of which shall not be included in their working time.
In continuous production processes and at enterprises where work cannot be interrupted, the employer shall provide the employee with time for a meal during their working time.
Furthermore, nursing employees shall be entitled to the following paid nursing breaks, provided that once the child has reached 8 months old, this break shall only be granted at the discretion of the health authorities as needed.
| Child's age | Nursing break |
|---|---|
| Up to 8 months | 1 hour twice a day or, with the employee's consent, 2 consecutive hours per day |
| Over 8 months | 1 hour per day |
Where the employee has twins or a premature child, the duration of this break shall be 3 hours daily until the child reaches 8 months old and 2 hours daily thereafter.
Overtime
Overtime work are generally prohibited, except when they are performed for reasons stipulated in the Labor Code.
Overtime hours worked by an employee are generally subject to a maximum of 150 hours per calendar year and the following limitations:
| Day work | Night work | |
|---|---|---|
| Monthly limit | 30 hours | 20 hours |
| Weekly limit | 6 hours | 4 hours |
| Daily limit | 3 hours | 2 hours |
A longer duration of the overtime work of up to 300 hours per calendar year may be agreed by collective agreement.
Overtime work performed shall be paid with an increase agreed between the employee and the employer, but not less than the following:
| Overtime premium | |
|---|---|
| On working days | 50% |
| On weekends | 75% |
| On public holidays | 100% |
Weekly Rest Days
Employees shall be entitled to at least 12 consecutive of daily rest and at least 48 consecutive hours of weekly rest. In principle, an employee's working week shall consist of 5 days, with one of their weekly rest day falling on a Sunday.
In cases of overtime work performed during the employee's weekly rest period, the employee shall be entitled, in addition to an increased pay for such work, to an uninterrupted weekly rest period of not less than 24 hours during the succeeding working week.
Holiday and Leave Entitlements
Public Holidays
Work on public holidays, regardless of whether this represents overtime work or not, shall be paid at double the employee's normal remuneration. There are 14 days of public holidays in Bulgaria for 2024.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Liberation Day | March 3 |
| Labor Day | May 1 |
| Good Friday | May 3 |
| Holy Saturday | May 4 |
| Easter Holidays | May 5–6 |
| St. George's Day | May 6 |
| Education and Culture, and Slavic Script Day | May 24 |
| Unification Day | September 6 |
| Independence Day | September 22 |
| National Awakeners Day | November 1 |
| Christmas Holidays | December 24–26 |
Where the public holiday, except for Easter, coincides with a Saturday or a Sunday, the first working day of two working days thereafter, as the case may be, shall be a non-working day or non-working days.
Annual Leave
Employees shall be entitled to at least 20 days of paid annual leave after completing each year of service. In the employee's first year of service, they may use their annual leave after completing at least 4 months of service.
Paid annual leave may be used all at once or in parts, and with the employer's written authorization, and they may be postponed for the following calendar year as follows:
| By the employer | By the employee |
|---|---|
| For important production reasons under the condition of Article 173 of the Labor Code. | By using an alternative type of leave or upon their request and the employer's acceptance |
If the leave was postponed or was not used by the end of the calendar year to which it relates, the employer shall be obliged to ensure its use in the first 6 months of the next calendar year. Furthermore, an opportunity shall be ensured for the employee to use at least half of their leave entitlement during the respective calendar year.
Note: Annual leave entitlements shall expire 2 years after the end of the year for which the said leave is due, regardless of the reasons therefor.
Sick Leave
Employees shall be entitled to take sick leave if they are unable to work due to a temporary disability or to attend to a sick or quarantined family member.
For the first 3 days of temporary disability leave. the employee shall be paid by the employer. Afterwards, cash benefits shall be paid by state social insurance.
Maternity Leave
Employees shall be entitle to 410 days of maternity leave due to their pregnancy and childbirth, with 45 days being taken prior to their confinement. During the maternity leave period, cash benefits shall be paid by state social insurance.
If the child is stillborn, dies or is placed in a fully public-financed child-care institution or is surrendered for adoption, the mother shall be entitled to leave until expiry of 42 days after the confinement.
Paternity Leave
Employees whose spouse or partner sharing a household has given birth to a child shall be entitled to 15 days of paternity leave from the date of the child's discharge from the medical-treatment facility. During the paternity leave period, cash benefits shall be paid by state social insurance.
Parental Leave
Once an employee has exhausted their maternity leave, they shall be entitled to an additional childcare leave until the child reaches 2 years of age. With the consent of the mother, this leave shall be granted to the father or to one of their parents where they work under an employment relationship.
During the time of this leave, the employee shall be paid a cash benefit by state social insurance. The time of use of any such leave shall be assimilated to the length of employment service.
After exhausting the initial childcare leave entitlement, each of the employed parents shall be entitled, upon request, to use 6 months of unpaid childcare leave until the child reaches 8 years of age. Each parent may use up to 5 months of the other parent's leave, subject to the other parent's consent.
Other Leave
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Bereavement Leave | Paid | 2 working days |
This leave can be taken in the event of the death of a parent, child, spouse, sibling, parent-in-law and other linear relatives. The employee shall be paid as per the relevant collective agreement or as mutually agreed between the parties. |
| Blood Donation Leave | Paid | - |
Employees can take this leave on the day of the examination and blood donation, and the day after. The employee shall be paid as per the relevant collective agreement or as mutually agreed between the parties. |
| Court Leave | Paid | - |
For employees who have been summoned to appear before a court of law or by other authorities as a party, witness or expert. The employee shall be paid according to the provisions of the special laws covering the activity. |
| Jury Service Leave | Paid | - |
For employees to attend sittings as a member of a representative State body or for jury service. The employee shall be paid according to the provisions of the special laws covering the activity. |
| Marriage Leave | Paid | 2 working days |
Employees can take this leave upon contracting marriage. The employee shall be paid as per the relevant collective agreement or as mutually agreed between the parties. |
| Pregnancy Checkup Leave | Paid | - | For the medical examination of employees who are pregnant or in an advanced stage of in vitro treatment. |
Employees in Bulgaria are afforded a range of many other leaves depending on their circumstances. It is therefore advisable to always check if the employee's request to take leave obliges the employer to grant them any such leave. Refer to the following table for more information:
| Topic | Relevant Articles in the Labor Code |
|---|---|
| Leave for the performance of civic, public or other duties | 157 |
| Leave of absence during active and temporary duty in the volunteer reserve | 158 |
| Trade union activists' leave | 159 |
| Unpaid leave | 160 |
| Service and sabbatical leave | 161 |
| Childcare leave upon placement for raising with extended and immediate, or foster, family | 164A |
| Adoption leave | 164B |
| Leave upon the parent's/adopter's death or severe illness | 167 |
| Paid leave for having 2 or more living children | 168 |
| Studies- and exam-related leave | 169–171A |
Get In Touch
Slasify is a one-stop platform offering Global Payroll, Employer of Record (EOR), and HR Outsourcing functions for the remote working generation. Our proven track record with Forbes Top 100 Companies and dedication to Diversity, Equity and Inclusion (DEI) make us your ultimate payroll partner. Join us on a global HR journey, where we cater to your needs across 150+ countries and unlock HR solutions tailored to you—Book a free consultation now!