Hire employees in Bulgaria
With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Bulgaria, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Bulgaria
Bulgaria has since an steep increase in Startup funding
Employer Tax
Estimated at 20%
Currency
BGN, Bulgarian Lev
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Up to 23.78%
Payroll Frequency
Monthly over 12 payments
Main Universities
Sofia University St. Kliment Ohridski, American University, Technical University
Capital
Sofia
Population
Circa 7 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Bulgaria is not only a fantastic tourism destination for both winter and Summer sports, it provides an environment with a mix of Eastern and Western culture. Bulgaria has set itself as a hub for Tech talent, especially for Developers or Product Owners to name a few. Bulgaria is now challenging the big western European cities to be a hub for Startups in Europe with hundreds of millions invested in Startups. As part of your international expansion, NOMAD can help you with the local employment for your new employees so you don’t have to go through the exhausting and time consuming process of opening a local entity to be able to hire local employees. We’ll do it for you through our Local partners Employer of Record (EOR) services.
Read our article on Bansko, the new favourite Working hub for Remote workers and digital Nomads in Bulgaria.
Payroll, Benefits & Tax in Bulgaria
- Average Salary in Bulgaria is 1,800 BGN Gross per month
- Employer Tax in Bulgaria is usually 20% but can vary
- This includes Pension at 13.72%
- Health Insurance at 4.80%
- Others: 0.5 to 1.5%
- Employee Tax in Bulgaria is flat rate at 23.78%:
- There is a flat income tax rate at 10%
- And a Health Insurance Tax at 4.80%
- Overtime in Bulgaria is authorized and can be compensated
- Payroll Frequency in Bulgaria is Monthly over 12 months
- Paternity Leave is 15 days or 2 weeks and will also be paid by the Social Insurance. As for the Maternity leave, the father must have been employed for at least 1 year within the company.
- Maternity Leave in Bulgaria is up to 410 days but on the condition that the mother has been employed at least 12 months. The Mother has to take 45 days before the birth date and 45 days after the birth of the child. The rest of the days can be taken when the mother wants int he first 2 years. Salary is covered by the National Insurance.
- Parental Leave is not an option in Bulgaria
- Sick Leave is covered for up to 180 days per year. The employer will pay at 70% of the salary during the first 3 days then it will be covered by the National Insurance at 80%
- Statutory Leave is 20 days minimum per year
- Bank holidays: there are 13 national days in 2023 in Bulgaria
- Termination can only be done for a valid cause in Bulgaria, see below
- Notice period is a minimum of 30 days
The Bulgarian Labor Code is setting the framework for employment in Bulgaria. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Bulgaria
- Probation period are not mandatory under Bulgarian Labour Law
- Probation period in Bulgaria however can be of a minimum of 30 days to a maximum of 180 days
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts are drafted in Bulgarian but can also be in English (but then has to be both at the same time). Termination conditions must appear on the contract
- Termination is Bulgari is generally a complicated process and requires particular care. In order to be compliant, Termination can happen only for just cause, as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period, reduction of work or end of the activity
- It is always advised to reach a Mutual Agreement to validate a Termination in Bulgaria
- The minimum notice period in Bulgaria is 30 days to 90 days
- Severance payments in Bulgaria are mandatory in mutual agreements and should cover at least 4 months of salary.
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Bulgaria is estimated around 20% (may vary depending on circumstances)
- Pension fund insurance
- Health insurance
- Others
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