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Expand your global workforce in Bulgaria

Your guide to the employment landscape, working customs and local labor laws in Bulgaria.

Capital

Sofia

Currency

Bulgarian Lev (BGN)

Languages

Bulgarian, Turkish, Romani

GDP per Capita

$12,505

Employer Tax

19.32% - 20.72%

Payroll Frequency

Monthly

Talent overview

Bulgaria, a land of rich culture and folklore, is a developing country in the south-eastern part of Europe, with an upper-middle income economy. A part of the European Single Market, the prominent sectors are service and industry. The private sector contributes more than 70% of Bulgarian GDP. In 2021, Bulgaria ranked 35th in the Global Innovation Index published by the World Intellectual Property Organization (WIPO) for the innovative accomplishments of the country.

Major economic hubs:

Sofia, Plovdiv

Skills in demand:

Professionals, Skilled workers

Top local universities in Bulgaria

Bulgaria Uni1

Sofia University St. Kliment Ohridski

Ranking

Local: 1

World: 942

Bulgaria Uni2 1

New Bulgarian University

Ranking

Local: 2

World: 1953

Bulgaria Uni3 1

Technical University of Sofia

Ranking

Local: 3

World: 3151

Bulgaria Uni4 1

Medical University-Varna

Ranking

Local: 4

World: 3723

Bulgaria Uni5 1

American University in Bulgaria

Ranking

Local: 5

World: 3833

Top Local Job Boards

Karieri.bg, jobs.bg, jobtiger.bg, Zaplata.bg, DEV.bg, Buljobs.bg

Number of LinkedIn users

1,030,000

Multiplier Recruitment Partner

iXceed

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

The table mentions the average annual salary in Bulgaria

Job Title Average Annual Salary (BGN) Average Annual Salary (USD)
Executive Management and Change 107,950 BGN $58560
Finance Control and Strategy 62,725 BGN $34026
Sales and Business Development 55,748 BGN $30242
IT and Software Development 47,030 BGN $25512
Consulting, Accounting and Professional Service 45,285 BGN $24566
Human Resource 26,126 BGN $14172

Employ in Bulgaria

Employing in Bulgaria

According to Bulgarian labor law, employees are classified into three categories – one, two, and three. The third category is the most popular and has favorable working conditions. The Council of Ministers does the segregation of employees.

Employee Contract

Employment contracts signed by both employer and employee can be in any language. However, the Bulgarian authorities can request a copy of the Bulgarian translation (if needed).

Probation period

In Bulgaria, the probation period is up to six months.

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year’s Day National holiday
2 Jan Day off for New Year’s Day National holiday
3 Mar Liberation Day National holiday
14 Apr Good Friday National holiday
15 Apr Holy Saturday National holiday
16 Apr Easter Sunday National holiday
17 Apr Easter Monday National holiday
1 May Labor Day National holiday
6 May St. George’s Day / Army Day National holiday
8 May St. George’s Day / Holiday National holiday
24 May Culture and Literacy Day National holiday
6 Sep Unification Day National holiday
22 Sep Independence Day National holiday
1 Nov Day of the Bulgarian Enlighteners National holiday
24 Dec Christmas Eve National holiday
25 Dec Christmas Day National holiday
26 Dec Second day of Christmas National holiday
27 Dec Christmas holiday National holiday

Employee Leaves

Type of leave Time Period Mandatory
Annual leave/Earned Leave 20 days Yes
Sick Leave 18 Months Yes
Maternity Leave 410 days Yes

Leave Compliance

Payroll in

Tw Payroll Img1

Payroll cycle

In Bulgaria, salary administration is managed every month, with salaries paid on the last working day of each month.

Tw Payroll Img2

Minimum wage

As of 2022, the minimum wage for employees in Bulgaria is 363 EUR or 710 BGN.

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Overtime pay

Work done beyond normal hours is compensated as per the mutually accepted employment contract. Also, there are maximum limits put in terms of working hours for the extra. 

Read more

How taxes work

Employer Payroll Tax:

Employers have to make the following contributions to every employee they maintain.

Type of Contribution Contribution
Social Security 14.12% – 14.82%
Health Insurance 4.80%

Employee Payroll Tax:

Every employee is entitled to a monthly salary, from which the following contributions will be made.

Type of Contribution Contribution
Social Security 10.52%
Health Insurance 3.2%

Employee Income Tax:

In Bulgaria, the income earned is taxed at a flat rate. Tax residents have to pay for their worldwide income, while non-residents only pay for their income sourced from Bulgaria.

Employee Income tax Slab
10.00% Flat Rate

VAT

The standard VAT rate in Bulgaria is 20%.

Bonus

13th Month Pay

There is no legal provision for the 13th-month salary. 

Employee Benefits

  • Social Security
  • Health Insurance 
  • Accident Insurance

Employee offboarding

Bulgaria maintains a standard process for termination based on the reasons listed in the labor law. The termination notice must be communicated in writing and sent to relevant government departments.

Legally, the notice period is 30 days, but in common practice, it can even be 90 days.

The pay varies based on the termination type, but severance pay is mandatory when applicable. The amount of severance should not be less than four months’ gross salary and has to be paid no later than seven days after the termination.

Tw Visa Img

Visa and
immigration

The essential documents to obtain if you are planning to work in Bulgaria:

  • Work Permit
  • Type D Visa
  • Residence Permit

Read more

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