Table of Contents
Introduction
Key Considerations for Employing in Bulgaria
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
1. Introduction
Hiring employees in Bulgaria requires adherence to structured labor laws, compliance procedures, and mandatory social insurance contributions. Omnipresent’s Employer of Record (EOR) service ensures compliant hiring and seamless HR support.
2. Key Considerations for Employing in Bulgaria
Currency: Bulgarian Lev (лв, BGN)
Language: Bulgarian
Employer Costs: Low (~<30% of salary)
Termination Complexity: Very Hard
Onboarding Timeline: Approximately 20 calendar days
Payroll Frequency: Monthly
3. Benefits
Types of Benefits Offered
Mandatory Benefits: Public healthcare, pension contributions, sickness & maternity coverage, accident & disability insurance, life insurance, workers’ compensation.
Supplementary Benefits: Additional health, dental, life, and disability insurance through local partners.
Healthcare
Contributions are made to the National Health Insurance Fund (NHIF) through payroll for basic care.
Supplementary health insurance is available via local providers.
Retirement
Retirement is split into three parts: State Social Insurance, Occupational Pension Fund, and Universal Pension Fund.
Funded via employer and employee payroll contributions.
Supplementary retirement plans are not common but available.
4. Employment Contracts
Contract Types
Indefinite-term contracts
Fixed-term contracts (minimum 1 year, justifiable reason required)
Part-time contracts
Requirements
Written contracts are mandatory.
Language: Bilingual (Bulgarian & English)
Signature Requirements: Qualified Electronic Signature (QES) via EvroTrust
Backdating: Not permitted
Contract Customisation
Optional clauses: unlimited time off, extra-legal sick days.
Non-customisable elements: overtime, restrictive covenants, stylistic formatting.
Probation Period
Max 6 months for standard contracts
Max 1 month for fixed-term contracts <1 year
Exception: Employment relationship transfers
5. Onboarding
Timeline
The onboarding process in Bulgaria typically takes ~20 calendar days, including:
Platform Setup
Right-to-Work Check
Employment Contract Processing
Benefits & Payroll Enrollment
Registration & Approvals
Notification submitted to the Bulgarian National Revenue Agency (NRA) before employment begins.
A medical certificate is required for new workers or those unemployed for 3+ months.
Immigration & Visas
Omnipresent does not offer visa support in Bulgaria.
Employee Transfers from Another EOR
Seniority can be recognized in the employment contract.
6. Leaves
Leave Entitlements
Annual Leave: Minimum 20 working days after 8 months’ service.
Carryover: Up to 10 days for 2 years
Unlimited PTO is not allowed
Parental Leave
410 days per child, can be split between both parents or granted to grandparents with consent.
State-paid: BGN 710/month (2022 rate)
Unpaid Parental Leave
6 months per parent until child turns 8
Single parents: Up to 12 months unpaid leave
Maternity Leave
45 days before birth and 410 days total
Paid at 90% of average wage, capped at BGN 3,600
Paternity Leave
2 months, must be used before child turns 8
Sick Leave
First 3 days paid by employer at 70%
Thereafter, paid by National Security Institute at 80–90% of salary (up to BGN 3,600 base)
Max 18 months continuous sick leave
Public Holidays (14 Days)
Includes: New Year’s Day, Liberation Day, Labour Day, Good Friday, Easter Monday, Christmas, etc.
7. Payroll & Taxes
Payroll Cycle
Frequency: Monthly
Cut-off Date: 6th of each month
Payment Date: Last working day of the month
Compensation
Minimum wage (2023): BGN 780/month
Extra Payments: Required based on length of service (0.6% of base per year)
Travel Allowance: Minimum BGN 40/day
Bonuses and commissions: Allowed, taxed accordingly
Hourly Wage
Not accepted by Omnipresent
Overtime
Generally prohibited under Bulgarian law
Standard Work Schedule
8 hours/day, 40 hours/week, Monday to Friday
Employer Costs
Guideline: <30% of salary. Use the OmniCalculator for accurate estimates.
Time Tracking
Employers must track working hours.
8. Termination Process
Notice Period
Permanent contracts: Standard 30 days (up to 3 months possible by agreement)
Fixed-term contracts: 3 months' notice or remaining contract length (whichever is shorter)
Termination Requirements
Terminations must be for cause, following the Bulgarian Labour Code
No termination without cause allowed
Gross misconduct allows immediate termination without notice after a disciplinary procedure
Redundancy requires consultation with employee reps
Severance Pay
Mandatory under some conditions
Rate depends on cause, notice observance, and tenure
Must also pay out unused leave (within 2-year limit)
9. Invoice Schedule
Initial Fees
Setup Fees: Triggered once terms are signed
Deposit: Due when the local employment contract is ready for signature
First Salary Prepayment: Invoiced on employee start date
Ongoing Monthly Payments
Invoiced monthly in arrears post-payroll
Each invoice includes:
Monthly service fee
Deposit insurance (if applicable)
FX fee (if applicable)
10. Get Started with Omnipresent
We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey toward compliant and seamless hiring in Bulgaria.