Overview

Capital
Sofia
Currency
Lev
Date Format
dmy

Taxes

Employer
13.72% - Social Security
0.40% - 1.10% - Accident at Work & Occupational Illness Fund
9.76% - Pension Fund
Employee
10.58% - Social Security
9.76% - Pension Fund
10% - Flat rate

Minimum Wage

General
Minimum wage is 260.76 EUR monthly.

Working Hours

General
Full Time employment is considered 40 hours weekly, and 8 hours daily.
Overtime
Overtime cannot exceed: - 140 hours annually - 30 hours monthly (or 20 night hours) - 6 hours daily (or 4 night hours) Overtime pay is paid at: - 150% on working days - 175% on holidays - 200% on public holidays

VAT

General
20% standard rate.

Payment

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

Mandatory Benefits

Pension Fund
The pension system in Bulgeria has three pillars: 1. PAYG system (mandetory): 6.22% contrbituion by both employer and employee 2. Capital funded pension scheme & professional pension scheme (mandetory): 7.3% contribution by both employer and employee 3. Voluntary pension funds
Social Security
Employers contribute 14.12% - 14.82% of workers wages (range varies depending on contributions to accident at work and occupational illness fund). Employees contribute 10.58% of their salary

Termination

Termination Process
Employer must provide employee with a month written notice regarding the termination. Notice period can be up to 3 months if stated in contractual agreement.
Advance Notice
Workers on indefinite contracts must provide at least 1 months notice, but can be as much as 3 months by contractual agreement. Workers on fixed term contracts must provide 3 months notice.
Severance Pay
Employees are entitled to a severance pay of their one month’s average salary.