Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Employer of record in Bulgaria ensures compliance with payroll cycles, employer and employee contributions, minimum wage regulations, and provides comprehensive support for hiring, onboarding, employee benefits, social security, healthcare, leave policies, work permits, termination procedures, and personal income tax obligations.
| Overview | |
| Continent | Europe |
| Country | Bulgaria |
| Capital | Sofia |
| Time zone | UTC+02:00 (EET) |
| Total Time zones | 1 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 10 January through 30 April of the following year |
| Financial Year | 1st January to 31st December |
| Date format | dd.mm.yyyy |
| Currency | Bulgarian Lev (BGN) |
| VAT | the standard rate is 20% |
Employer Payroll Contributions in Bulgaria
| Employers | % of Gross Salary |
| Social Security | 13.72% |
| Health Insurance | 4.8% |
| Accident at Work & Occupational Illness Fund | 0.4% to 1.1% |
| Total Employer Cost | 18.92% - 19.62% |
Employee Payroll Contributions in Bulgaria
| Employees | % of Gross Salary |
| Social Security | 10.58% |
| Health Insurance | 3.2% |
| Total Employee Cost | 13.78% |
Minimum Wages in Bulgaria
| Minimum Wage | |
| Minimum Wage | The minimum wage in Bulgaria is 4.06 BGN per hour. |
Payroll Cycle in Bulgaria
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not required by law. |
Personal Income Tax in Bulgaria
| Income Tax | |
| Flat rate | 10% |
Employee Benefits in Bulgaria
Employee benefits in Bulgaria are regulated by both mandatory and supplementary systems. Mandatory benefits include contributions to the state-run pension and healthcare systems, while supplementary benefits are provided by employers to enhance the overall employee experience. Let's explore these benefits in more detail:
Mandatory Benefits:
State-Run System:
The Social Security Code governs the state social security system in Bulgaria. Contributions to this system are mandatory for all employed and self-employed individuals. These contributions are withheld from employees' salaries and paid to the National Revenue Agency. The funds are then distributed to the respective state funds responsible for providing benefits. Mandatory benefits include:
- Sick-leave Payment: Employees receive sick-leave payment for up to 6 months in case of short-term disability or reduced ability to work due to general disease, work-related accidents, or occupational diseases.
- Maternity Leave: Pregnant employees are entitled to maternity leave, which includes pregnancy, childbirth, and raising a child up to 1 year. The leave provides 90% of the average security income for the last 24 months, along with a monthly fixed amount.
- Disability Pension: In the event of a 50% or more permanent disability due to general disease, work-related accidents, or occupational diseases, employees are eligible for a disability pension.
- Old-Age Pension: Bulgaria operates a three-pillar pension system, with the state pension fund being the first pillar. This system provides a life-long old-age pension based on the contributions made by the employee.
- Unemployment Benefits: Employees who become unemployed may receive unemployment benefits for a period ranging from 4 to 12 months, depending on their contribution period.
- Paid Leave: Employees are entitled to annual paid leave of 20 days, with additional days granted for sectors with heavier working conditions as defined by law or collective employment agreements.
Healthcare System:
The Health Insurance Act mandates contributions to the state healthcare system for all Bulgarian citizens and foreigners with long-term residence permits. Contributions are administered through payroll for employed individuals, while self-employed individuals are responsible for making their own payments. The healthcare system focuses on inpatient services and the health of children and retirees. Dental care is limited, and drug reimbursement is available for chronic diseases only.
Supplementary Benefits:
- Work-Related Accident Insurance: Employers in sectors with high accident rates must provide group accident insurance for their employees. This insurance covers medical expenses and provides compensation in the event of work-related accidents.
- Business Travel Insurance: Employers are required to cover all medical expenses incurred by employees during business trips abroad. It is highly recommended for employers to provide this insurance to ensure the well-being of their employees while traveling for work.
- Supplementary Medical Insurance: Supplementary medical insurance is highly valued by employees and provides access to specialized medical professionals and expensive tests without the need for a referral from a general practitioner. This insurance covers outpatient care, elective surgeries, and additional medical services not covered by mandatory insurance.
- Group Life Insurance: Group life insurance is gaining popularity, particularly in sectors such as technology, outsourcing services, finance, and consultancy. Employers offer life insurance to provide financial security to employees and their families in the event of an untimely death.
- Supplementary Voluntary Pension Insurance: Voluntary pension insurance is an appreciated benefit that allows employees to contribute to their pension funds. Contributions are often shared between the employer and the employee, helping employees secure their financial future.
Employee Perks:
In addition to mandatory and supplementary benefits, employers in Bulgaria offer various perks to enhance the work experience and attract top talent. These perks may include:
- Food Vouchers: Production enterprises often provide food vouchers to employees as a benefit.
- Free Healthy Food and Drinks: Some employers offer free healthy food and drinks to promote a healthy lifestyle among employees.
- Professional Learning and Development: Companies provide opportunities for professional growth through free or subsidized learning and development programs.
- Gym Memberships and Fitness Facilities: Employers may offer gym cards or multisport cards to employees, providing access to fitness facilities and promoting employee well-being.
- Mobile Phones: Employers may provide mobile phones for work-related purposes, ensuring effective communication and connectivity.
- Transportation Allowances and Company Cars: Managers and certain employees may receive transportation allowances or have access to company cars for business purposes.
- Employee Assistance Programs: Employee assistance programs offer support services such as counseling, mental health resources, and work-life balance programs.
- Corporate Discounts: Employees can benefit from corporate discounts on various products and services.
- Remote Work: With the rise of technology and outsourcing companies in Bulgaria, remote work options have become popular, providing flexibility and work-life balance.
By offering a combination of mandatory benefits, supplementary benefits, and employee perks, companies in Bulgaria aim to attract, retain, and motivate talented individuals while promoting their overall well-being.
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