Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in Bulgarian and use the Bulgarian Lev currency (BGN).
Working Hours
The standard working hours in Bulgaria are 8 hours per day, 40 hours per week.
Overtime
Work in excess of the standard workweek of 40 hours is to be paid as overtime and is regulated by employment contracts or collective agreements. In general, overtime maximum limits are set at three hours per day (across two consecutive days), six hours a week, 30 hours a month, and 150 hours per year.
Overtime hours are paid at 150% of the standard salary rate for working day hours, 175% for weekend hours overtime, and 200% for working on public holidays. Overtime pay cannot be included in the gross annual salary regardless of the employee’s level or seniority.
Public Holidays
There are 15 public holidays in Bulgaria.
For the year 2024:
- Jan 1: New Year’s Day
- Mar 3: Liberation Day
- Mar 4: Liberation Day Holiday (Day Off in Lieu)
- May 1: Labor Day
- May 3: Good Friday
- May 6: Easter Monday, St. George’s Day
- May 24: Culture and Literacy Day
- Sep 6: Unification Day
- Sep 22: Independence Day
- Sep 23: Independence Day Holiday (Day Off in Lieu)
- Dec 24: Christmas Eve
- Dec 25: Christmas Day
- Dec 26: Second Day of Christmas
Annual Leave (vacation)
Paid leave in Bulgaria is set in the employment contract as a minimum of 20 days paid leave a year, following completion of 4 months of employment.
Sick Leave
The first two days of sickness are paid for by the employer at a rate of 70% of the regular salary. From the third day of sickness, The National Social Security Fund takes over the payment at 80% of the regular salary rate or 90% for work-related sick leave or injury (providing the employee has completed at least six months of service or Social Security payments). All employees are entitled to claim up to 18 months of paid sick leave.
Employees must provide a medical certificate within 48 hours of the first day of sickness.
Maternity and Paternity
Maternity Leave
All female employees are eligible for paid maternity leave of 410 days. Typically, 45 days must be taken before the due date with the remaining days used after the birth. After the sixth month of leave, the mother can choose to transfer the remaining leave days over to the father to use instead.
Workers with at least 12 months of insurance contributions will be paid for maternity leave (temporary incapacity for work) by the National Social Insurance Institution at the rate of 90% of the average daily gross wage.
To cover the period of maternity leave and Parental leave, sick leave certificates must be provided. The first certificate is to be issued 45 days before the due date by the doctor who monitors pregnant women. A second certificate is to be issued 42 days after the birth in the hospital by the doctor who delivered the baby. A third sick note is issued for the leave period up to the 135th day by the child’s or mother’s GP. For the remaining leave entitlement period (up to a total of 410 days), the worker must request this leave from the employer. After each sickness certificate/request for leave has been submitted, the employer must submit it to the National Social Insurance Institute.
Following the end of the 410 days maternity leave, additional paid leave can be taken by the mother, or can be transferred to the father, until the child reaches the age of 2 years old. This leave can be utilized for the parents first, second and third child only. This is paid at a rate of 780 BGN per month providing the child is not in childcare such as nursery and the mother has not consented to the transfer her maternity entitlement to another eligible family member. If the child goes to a nursery during any of the Parental Leave period, the cash benefit will not be paid.
Paternity Leave
Fathers are entitled to Paternity Leave of 15 calendar days, fixed to be taken from the day the baby is discharged from the maternity hospital (of this day is a non-working day, vacation or public holiday, paternity leave still applies and no additional day off in lieu is given).
Paternity Leave is paid at a rate of 90% of the average daily gross remuneration or the average daily insurance income, on which insurance contributions have been paid or due for the period of 24 calendar months preceding the month of the start of the leave upon the birth of a child.
Fathers are eligible for this Paternity Leave once they have completed at least 1 year of employment. To claim this leave the father must submit a declaration form to the employer with a copy of the hospital discharge certificate.
Once the child reaches at least six months of age, the mother can choose to transfer any of her unused maternity leave entitlement to be used by the father.
A further 2 months of leave, paid by the National Social Security Institute, to raise a child under the age of 8 is available to the father providing he has not already taken leave to raise a child younger than two and has not used maternity leave transferred from the mother. To use this leave, the employer must be notified at least 10 days in advance.
Paternal Leave
Once the child has reached the age of 2 years old, unpaid Parental Leave of up to 6 months is available to be used by each parent until the child reaches the age of 8 years old, providing the child is not in a state-maintained institution. Each parent may take up to 5 months of the other parent’s leave with his/her consent. Leave can be taken all at once or in installments of not less than 5 working days per leave period. Parents must notify their employer at least 10 working days in advance of taking this leave.
Other Leave
Marriage Leave – Employees are entitled to two days of paid leave in the event of their marriage.
Bereavement Leave – Employees are also entitled to two days of leave to attend the funeral of a family member.
Employee Severance and Terminations
Termination Process
The termination process is standard in Bulgaria based on termination reasons contained within the Bulgarian Labor Law, unless an employer can provide sufficient cause for dismissal without notice (i.e. due to misconduct). Specific justified causes for termination with prior notice by the employer include the closure of the employer’s enterprise, staff reduction due to change in the employment grid, a decrease in the volume of work, the employee’s lack of ability to effectively perform the required work, and changes in a job position’s requirements which the existing worker’s skills are not aligned with.
The process is initiated by a formal written notice to the employee (except where a disciplinary dismissal applies). Regardless of the cause for termination, the employer must notify the territorial direction of the National Revenue Agency within seven days of the effective termination date.
Notice Period
The statutory minimum notice period in Bulgaria is 30 days’ notice, however, it is common practice to use a notice period of 90 days.
Severance Pay
Severance is 1 to 7 month’s pay depending on termination grounds e.g. office closure, redundancy or staff reductions.
Probation Period
The probation period for permanent employees is generally three months, up to a maximum of 6 months.
Payroll Cycle
The payroll cycle in Bulgaria is generally monthly, with payment being made on the last working day.
The minimum wage is 933 BGN per month.
13th Salary
There are no provisions in the law regarding 13th salaries.
Contributions
Income Tax
Flat Rate of 10.00%
Employee Payroll Contributions
Contributions
Employer Payroll Contributions
VISA
Any foreigner coming to work in Bulgaria will need to apply for a Bulgaria residence permit. The main legislation governing the issuance of residence permits for foreign citizens is the Foreign Nationals in the Republic of Bulgaria Act.
The legislation establishes foreigners may apply for one of the three types of Bulgarian residence permits: Bulgarian residence visas, residence visas for foreign employees, and long-term or extended residence visas.
VAT
The standard rate of VAT in the Bulgaria is 20%.