Employment Law

Employment Contracts in Bulgaria

We strongly recommend that you always provide your employees in Bulgaria with a written employment contract. These contracts should be written in Bulgarian, use the Bulgarian Lev currency, and include details such as salary, parental leave allowance, holiday allowance and any other relevant information.

Fixed Term

Indefinite

Working Hours in Bulgaria

The normal working week in Bulgaria is eight hours a day, five days a week. In addition to this, the employer must pay overtime wages. 180% of normal salary is paid on weekdays, 175% is paid on holidays, and 200% is paid on public holidays.

Holiday Policy

Bulgaria Vacation

Workers in Bulgaria are entitled to at least 20 days of vacation per year.

Bulgaria Sick Leave

Employees in Bulgaria are entitled to paid sick leave. The first day of absence is paid by the employer, and subsequent absences are paid by the state. Compensation for the second period is generally 80% of normal wages for normal illness, or 90% of normal wages for workplace-related illness or injury.

Parental Leave in Bulgaria

Female employees in Bulgaria can enjoy 410 days of paid maternity leave (national regulations). 45 of these days must be taken before birth. The compensation is equivalent to 90% of the employee's normal salary.

Male employees are entitled to 15 days of paid leave after the birth of the child and may use the mother's unused leave, if any, after the child is at least six months old.

There are different rules for parents with more than one child.

Taxes in Bulgaria

In Bulgaria, employers and employees must pay social security contributions. Employers pay 60% and 40% of contributions, totaling 17.3% of wages, plus pension insurance contributions of 5% of wages and health insurance contributions of 8% of wages.

Employers must also contribute 0.4% to 1.1% of wages to workplace accident insurance.

Health Insurance in Bulgaria

The National Health Insurance Fund covers healthcare in Bulgaria, to which all employees (and employers) are required to contribute. Therefore, people generally do not expect private health insurance.

Termination and Severance Pay in Bulgaria

Employees in Bulgaria are generally entitled to at least 30 days' notice of termination. If an employee is dismissed due to illness and has been with the employer for more than five years, they are entitled to severance pay of at least two months' salary.

Salary and Benefits

Compensation Law in Bulgaria

The minimum wage in Bulgaria is €311.9 per month (2020).

Welfare Administration in Bulgaria

Setting up a benefits system for the Bulgarian workforce can be difficult and complex if you are not familiar with the country, its customs and employment laws. Standalone setup can take weeks and may cause unexpected delays. Remoly can simplify your Bulgarian benefits administration. Our Bulgaria experts can handle everything for you, helping you focus on a successful expansion.