Bulgaria

Employment

Official employment is established by a written contract signed by both parties which discusses the working conditions, benefits and obligations.

Payroll

Salaries are paid on monthly basis. Payday is agreed between the employer and employee.

HR & Labor

Working Hours: Full time employment is considered 40 hours per week. Overtime work cannot exceed 150 hours per year, three hours per day, two days with six hours per workweek.
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Employees are compensated for overtime work no less than 150% of regular wages if they worked during a workday, 175% of regular wages if overtime was during the weekend, 200% if it was during holidays. Minimum Working Age: Employees are allowed to work at the age of 16. Between the ages of 16 to 18, a labor contract authorized by the Labor Inspectorate must be present.

Immigration

Employees who are citizens of the EU/EEA or Switzerland are not required to have a work permit. They must register at the local Employment Office upon starting their employment in Bulgaria.
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Non EU/EEA employees must have their employer's apply for a permit prior to entering Bulgaria. Once the National Employment Agency issues the permit, the employee will be allowed to start employment.

Minimum Wage

Minimum wage is 184EUR per month.

Pension Fund

Employer contributes 9.8% of the total gross income for employees born before 01/01/1960 and 7.1% of the gross income for employees born after 12/31/1959.

If the employee is born before 01/01/1960, they contribute 7.9% of their gross income and if they were born after 12/31/1959, they contribute 5.7% of their gross income. Contribution ceiling is BGN 31,200.

Severance Payments

Employees are entitled to a severance pay of their one month’s average salary.

Advance Notice

Employee must provide the employer with one month advance written notice, unless agreed otherwise.

Termination Procedure

Employer must provide employee with a month written notice regarding the termination.

Vacation Days

Employees working in the company for more than eight consecutive months are entitled to 20 days paid vacation.

Sick Days

For the first three days of the sick leave, the employer must cover 70% of the employee’s wages. The National Social Security Institute must cover rest of the sick leave, after the employee provides necessary documentations. Employee must be working for the company for at least six consecutive months to claim these benefits. The employee will receive 80% of their regular wages per day, which is capped at BGN 2,600 in case of a sick leave and in case of an accident at the workplace, they will receive 90% of their regular wages, capped at BGN 2,600.

Public Holidays

There are 14 public holidays.

Additional Employee Withholdings

1) Social Security
2) Health Insurance

1) Employer contributes 13.7%
2) Employer contributes 4.8%

1) Employee contributes 9.7%
2) Employee contributes 3.2%

Social Benefits

Basic social security (unemployment insurance etc.) of 17.3% from the gross salary; pension insurance of 5% from the gross salary; health insurance of 8% from the gross salary.

The employer has to pay 60% of the insurance contributions, the employee the remaining 40%.

Furthermore, the employer has to bear the costs of the occupation accident insurance that amounts between 0.4 % and 1.1 % of the gross salary, depending on the job.

Income Tax

All income earned in Bulgaria is taxed on a flat rate of 10%

VAT

VAT is 20% standard rate.