HR & Labor
Minimum wage is 184EUR per month.
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.
Employees are entitled to a severance pay of their one month’s average salary.
Employee must provide the employer with one month advance written notice, unless agreed otherwise.
Employer must provide employee with a month written notice regarding the termination.
Employees working in the company for more than eight consecutive months are entitled to 20 days paid vacation.
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.
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%
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.
All income earned in Bulgaria is taxed on a flat rate of 10%
VAT is 20% standard rate.