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.

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

Payroll

Payroll Cycle

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

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.