How to Hire Employees in Bulgaria

Hiring employees in Bulgaria requires a written employment contract, registration with the National Social Security Institute, and filing with the National Revenue Agency before the employee's first working day. Employer social security contributions range from 21.68% to 22.38% of gross salary, income tax is withheld at a flat 10% rate on a monthly payroll cycle, and the country's minimum wage is set to reach BGN 1,213 per month from January 2026.

The most critical compliance obligation for foreign employers is the NRA contract filing deadline. The signed employment contract, which must be in Bulgarian, must be submitted electronically to the NRA within 3 calendar days of signing, and work cannot legally begin until the NRA issues a confirmation number. Contracts filed outside this window are unenforceable, making timely submission the central operational pressure point for any employer entering the Bulgarian market.

Job Market and Hiring Trends in Bulgaria

Bulgaria's IT and BPO sectors are driving the strongest hiring growth, with Sofia and Plovdiv absorbing most new tech roles as of 2024 to 2025. Demand is concentrated in software development, engineering, and healthcare.

Qualified IT candidates are in short supply. Administrative and low-skill roles face a surplus of candidates relative to available positions.

• 28% of Bulgarian employers plan headcount increases through March 2026, according to ManpowerGroup's Employment Outlook Survey (2025).

• Net employment outlook is up 6 percentage points through Q1 2026, per ManpowerGroup (2025).

• Bulgaria's IT sector accounts for roughly 8% of GDP and is the fastest-growing employer of university graduates, according to BAIT (2024).

• Unemployment stood at approximately 5.2% as of late 2024, per the National Statistical Institute of Bulgaria (NSI).

• Average gross monthly wage was approximately BGN 2,500 in 2024, the lowest average in the EU, according to NSI.

For IT roles in Sofia and Plovdiv, employers typically use dev.bg, Bulgaria's primary tech job board, alongside specialist recruitment agencies. Direct hiring through dev.bg suits companies with local HR capacity; agencies reduce time-to-hire but add cost. Time-to-hire for mid-level software roles in Sofia typically runs 6 to 10 weeks when sourcing directly.

Your Options for Hiring in Bulgaria: Entity vs. EOR vs. Contractor

Foreign companies entering Bulgaria choose between three hiring models: local entity, independent contractor, or Employer of Record (EOR). Each carries distinct compliance obligations, cost structures, and timelines.

Entity setup takes two to four months and costs $910 to $1,707, covering registration fees, notary, legal services, and bank setup. Ongoing legal and accounting support adds to that cost.

Contractor engagement suits genuinely independent, project-based work. Misclassifying an employee as a contractor triggers retroactive social security contributions and financial penalties from Bulgarian authorities.

Path	Setup Time	Cost	Compliance Burden	Best For
Local Entity	2–4 months	$910–$1,707 + ongoing admin	Full burden on employer	Long-term, large-scale operations
Independent Contractor	Immediate	No setup cost	Misclassification risk on employer	Short-term, genuinely independent work
Employer of Record	Days	No setup cost	Shifted to EOR provider	Fast, compliant expansion

An EOR becomes the legal employer in Bulgaria. It issues employment contracts, runs payroll, and handles all NSSI and NRA filings. You retain full operational control over the employee's day-to-day work. To understand how does EOR work in practice, or to review what is included in a full service offering, see Gloroots' EOR services page.

Employees vs. Contractors in Bulgaria

Misclassifying an employee as a contractor in Bulgaria triggers retroactive social security contributions, back taxes, and potential criminal liability for the engaging company.

Bulgarian authorities apply a practical test based on control over how, when, and where work is performed, the exclusivity of the relationship, and the worker's economic dependence on a single payer. The label on the contract is irrelevant. Substance determines classification.

Factor	Employee	Contractor
Control	Employer directs how, when, and where work is done	Worker controls their own methods and schedule
Benefits and Social Security	Mandatory employer contributions to NSSI	No employer contributions required
Taxation	Employer withholds income tax at source	Contractor self-files and remits taxes
Contractual Agreement	Employment contract under the Labor Code	Civil or commercial service agreement
Exclusivity	Typically works for one employer	Serves multiple clients independently

Bulgarian labor inspectorates look past contract titles. A worker who receives direction, uses employer-provided equipment, and works exclusively for one company will be reclassified as an employee regardless of what the agreement states.

Cost to Hire an Employee in Bulgaria

Total employment cost in Bulgaria is gross salary plus mandatory employer social security contributions. Salary alone understates the true cost.

Employer contributions range from 21.68% to 22.38% of gross salary, covering pension, health, unemployment, accident insurance, and supplementary pension. These are calculated on insurable income between BGN 1,077 and BGN 4,130 per month (2025 ceiling). Income above BGN 4,130 is not subject to additional contributions.

Contribution	Employer Rate	Employee Rate	Notes
Pension Fund	8.22%	6.58%	Core retirement fund
Health Insurance	4.80%	3.20%	State health fund
Common Sickness / Maternity	2.10%	0%	Employer-only contribution
Unemployment	0.60%	0%	Employer-only contribution
Accident at Work	0.40%–1.10%	0%	Rate varies by economic activity
Supplementary Pension	2.80%	0%	Universal supplementary fund
Social Security (employee share)	0%	10.58%	Pension and sickness combined
Income Tax	0%	10% flat	Withheld at source by employer

Annual recurring compliance costs include a risk assessment at BGN 35, labor safety company insurance at BGN 25, an employer liability administrative fee of 0.60%, and a medical exam and health and safety fee of BGN 5 per employee.

For companies evaluating whether to hire directly or through an EOR, reviewing employer of record cost structures helps clarify the full cost comparison before committing to a model.

Compliance Risks While Hiring in Bulgaria

Non-compliance with Bulgarian labor law triggers financial penalties, retroactive contributions, and labor court claims. Bulgarian courts default to employee protection, not employer flexibility.

Six risks carry concrete consequences for foreign employers:

• Misclassification: Reclassifying a contractor as an employee triggers retroactive employer contributions of 21.68% to 22.38% plus penalties on all past payments.

• Payroll errors: Late tax remittance to the National Revenue Agency generates interest charges and flags the employer for audit.

• Contract violations: Contracts not filed with the NRA within three days of the start date are unenforceable. Missing mandatory elements under Article 66 of the Labour Code favor the employee in any dispute.

• Termination risk: Failure to follow Labour Code termination procedures exposes the employer to reinstatement claims and compensation orders from Bulgarian courts.

• Statutory benefit non-compliance: Employers must pay 70% of salary for the first three days of sick leave. Incorrect severance calculations expose the employer to direct claims.

• Payroll record retention: The Labour Code requires employers to retain payroll records for 50 years. Failure to maintain records is a compliance violation subject to inspection penalties.

Each risk compounds with headcount. One misclassified worker or one late filing creates a pattern that labor inspectorates use to justify broader audits. Compliance governance must be in place before the first hire, not after the first problem.

Key Labor Laws in Bulgaria

Bulgarian employment is governed by the Labour Code, EU labor directives, and sector-specific collective agreements. The Labour Code sets the floor for all employment relationships in Bulgaria, regardless of the employer's country of origin.

EU membership requires Bulgaria to implement directives on working time, equal treatment, and information and consultation rights. Bulgaria enforces its own interpretations of probation periods, notice requirements, and severance calculations, which differ from neighboring EU markets.

Sector-specific collective agreements can extend protections beyond Labour Code minimums. Employers must confirm whether a relevant agreement covers their workforce before finalizing contract terms.

The National Revenue Agency (NRA) and the National Social Security Institute (NSSI) are the primary enforcement bodies. Labor inspectorates conduct audits and issue penalties for contract, payroll, or registration violations.

Employment Contracts

Every Bulgarian employment contract must be written in Bulgarian and signed before the employee's first working day. The employer must file the contract electronically with the NRA within three calendar days of signing or the employment start date, whichever comes first.

Probationary periods may not exceed six months. The contract must state whose benefit the probation serves. The party for whose benefit probation is set may terminate without notice during that period.

Working Hours and Overtime

Bulgaria sets a standard 8-hour day and 40-hour week. Overtime is capped at 150 hours per year, with separate daily, weekly, and monthly limits for daytime and nighttime workers.

Overtime pay rates are 150% on regular days, 175% on weekends, and 200% on public holidays. Bulgaria observes 15 public holidays annually. Employees must receive at least 12 consecutive hours of daily rest and 48 hours of weekly rest. Shifts exceeding 6 hours require a mandatory 30-minute meal break. Minors are prohibited from overtime work.

Minimum Wage

Bulgaria's minimum monthly wage rises to BGN 1,213 (approximately $706) from January 1, 2026, affecting approximately 600,000 workers. From 2026, this figure also sets the minimum insurable income floor for social security contributions. Employers cannot structure compensation below BGN 1,213 to reduce contribution obligations. Employees with more than one year of service are entitled to a length-of-service supplement of at least 0.6% of base salary per year.

Leave Entitlements

Bulgarian law sets a statutory minimum of 20 working days of annual leave per year, which must be used within the calendar year. Full details on maternity, paternity, and sick leave are covered in the Employment Benefits section below.

What to Include in an Employment Contract or Offer Letter in Bulgaria

The employment contract is the primary compliance document in Bulgaria. Every element required under Article 66 of the Labour Code must be present before the contract is filed with the NRA.

• Full personal details of both the employer and the employee

• Place and nature of work

• Start date and contract type: fixed-term or indefinite

• End date, if the contract is fixed-term

• Basic salary and the length-of-service supplement (minimum 0.6% per completed year)

• Working hours and overtime terms

• Probationary period of up to 6 months, with a clear statement of whose benefit it serves

• Annual leave entitlement of at least 20 working days

• Notice period lengths for both parties

• Any applicable collective agreements covering the workforce

• Confidentiality and intellectual property clauses

• Governing law: the Bulgarian Labour Code

• Confirmation that the contract is written in Bulgarian, as required by law

• NRA filing obligation: the employer must file the contract within 3 calendar days of signing or the employment start date

Payroll and Taxes in Bulgaria

Payroll in Bulgaria runs on a monthly cycle. The official currency is the Bulgarian Lev (BGN), pegged to the euro at a fixed rate.

Foreign employers cannot run payroll directly in Bulgaria without a registered local entity. Compliant payroll requires either a Bulgarian-registered company or an Employer of Record (EOR) acting as the legal employer on your behalf.

Employers withhold income tax at a flat 10% rate from each employee's gross salary and remit the amount to the National Revenue Agency (NRA) by the 25th of the following month. No progressive brackets apply.

Income Level	Tax Rate	Notes
All income levels	10% flat	Withheld at source by employer; remitted monthly to NRA

Contribution Type	Employer Rate	Employee Rate
Pension Fund	8.22%	6.58%
Health Insurance	4.80%	3.20%
Common Sickness / Maternity	2.10%	0%
Unemployment	0.60%	0%
Accident at Work	0.40%–1.10%	0%
Supplementary Pension	2.80%	0%
Employee Social Security (combined)	0%	10.58%
Income Tax	0%	10% flat

The Labour Code requires employers to retain payroll records for 50 years. This applies to all employment documentation, including payslips and contribution records. Labor inspectorates treat missing records as a compliance violation subject to financial penalties.

NRA remittance for both income tax and social security contributions falls due by the 25th of the month following the payroll period. Late remittance generates interest charges and can trigger an audit. For country-specific EOR pricing, Gloroots publishes figures before you commit to a hiring model.

Employment Benefits in Bulgaria

Bulgarian law separates statutory benefits, which every employer must provide, from supplemental benefits that employers offer to attract and retain staff.

Leave Type	Entitlement	Pay Rate	Key Conditions
Annual Leave	20 working days minimum	100% of base salary	Accrues from first year of service
Sick Leave (days 1–3)	Employer-funded	70% of daily wage	Employer pays first 3 days; NSSI covers from day 4
Maternity Leave	410 days total	90% of insurable income	135 days before and after birth; remainder transferable to father
Paternity Leave	15 days	90% of insurable income	Taken within 6 months of birth; NSSI-funded
Public Holidays	15 days per year	100% of base salary	Work on public holidays paid at 200% or compensated with time off

Mandatory statutory benefits include workplace accident insurance, state health fund coverage through the NSSI, and the maternity and paternity entitlements listed above. Employers must enroll every employee in the state health fund from the first working day.

Supplemental private healthcare is available through EOR arrangements. Gloroots supports optional private health coverage through providers including Unisure and Allianz, which employers can add to the standard benefits package.

Bulgaria has two major trade union confederations: the Confederation of Independent Trade Unions of Bulgaria (CITUB) and the Confederation of Labour Podkrepa. In unionized sectors, collective bargaining agreements can extend leave entitlements, increase pay rates, or add benefit categories beyond the Labour Code minimums. Employers must identify whether a relevant collective agreement applies to their workforce before finalizing benefit terms.

Paid Time Off and Public Holidays

Bulgarian employees are entitled to a statutory minimum of 20 working days of paid annual leave per year. This leave must be used within the same calendar year and cannot be carried forward without a written agreement.

Bulgaria observes 15 public holidays annually, applied uniformly across the country. These are nationally set dates and do not vary by region or sector.

• 1 January: New Year's Day

• 3 March: Liberation Day

• Good Friday, Holy Saturday, Easter Sunday, Easter Monday (dates vary)

• 1 May: International Labour Day

• 6 May: St. George's Day (Bulgarian Army Day)

• 24 May: Bulgarian Education and Culture Day

• 6 September: Unification Day

• 22 September: Independence Day

• 1 November: National Revival Day

• 24 December: Christmas Eve

• 25 December: Christmas Day

• 26 December: Second Day of Christmas

When a public holiday falls on a weekend, the following Monday is typically designated as a substitute day off.

Sick Leave

Bulgarian sick leave is funded in two stages. For the first three days of illness, the employer pays 70% of the employee's average daily gross salary. From day four onward, the National Social Security Institute (NSSI) takes over and pays approximately 80% of the employee's insurable income.

To claim sick leave, the employee must present a medical certificate (болничен лист) issued by a licensed physician. Without this document, the absence is not recognized as sick leave under the Labour Code.

NSSI-paid sick leave can continue for up to 18 consecutive months for a single illness. After that period, the case is reviewed for potential disability classification.

Maternity and Paternity Leave

Bulgarian law provides 410 days of maternity leave in total. The first 135 days are taken around the birth itself. The remaining 275 days follow. The National Social Security Institute (NSSI) pays approximately 90% of the employee's insurable income for the full period.

Paternity leave is 15 days, paid at the NSSI rate, taken after the birth. After the initial 135-day maternity period, either parent may take the remaining 275 days, giving families flexibility in how leave is shared.

Public Health Insurance

Bulgaria's state health fund is financed through mandatory contributions. Employers contribute 4.80% of gross salary and employees contribute 3.20%. Coverage under the state fund is basic.

Many employers supplement state coverage with private health insurance. Providers available through EOR arrangements in Bulgaria include Unisure and Allianz.

Work Permits and Visas in Bulgaria

EU and EEA nationals do not need a work permit to work in Bulgaria. Non-EU nationals require a single permit or a Type D long-stay visa before starting employment.

A Bulgarian employer or EOR must sponsor the single permit application. The process includes a labour market test: the employer must actively post the role for 15 days before filing. Non-EU nationals cannot exceed 20% of the total workforce under Bulgarian law.

Visa Type	Purpose	Validity
Type D Visa	Long-stay entry visa required before a single permit is issued for non-EU nationals	Issued prior to single permit; duration set by consulate
Single Permit	Combined work and residence permit for non-EU nationals; employer files with the Employment Agency	Tied to employment contract duration

Exemptions from the labour market test apply to workers covered by international agreements, academics, professional sportsmen, and performers. The 20% foreign worker quota applies to the total headcount at the employing entity.

Onboarding New Hires in Bulgaria

Onboarding in Bulgaria is a compliance sequence with fixed legal steps. Each phase has specific filing and registration obligations that must be completed in order.

• Before Day One: File the employment contract electronically with the National Revenue Agency (NRA) and receive a confirmation number. Register the employee with the National Social Security Institute (NSSI). Arrange a wet-ink signed employment agreement and deliver it by courier (approximately BGN 20 courier cost; USD 80 wet-ink handling fee). Confirm work permit status for non-EU nationals.

• Day One: The employee cannot begin work until the NRA confirmation number is received. Provide a mandatory workplace safety briefing and issue the employee handbook or internal rules.

• First Week: Complete the NSSI registration sequence. Enroll the employee in health and accident insurance. Set up the payroll record.

• Beyond: Schedule a mandatory medical examination (BGN 5). Complete the annual risk assessment (BGN 35 per year). Enroll in labour safety company insurance (BGN 25 per year).

The NRA confirmation number is the legal trigger for employment to begin. No work can start before it is received, regardless of the contract signing date.

NDAs, Confidentiality and IP Protection in Bulgaria

Post-employment non-compete agreements are unenforceable under Bulgarian law. Do not include them in employment contracts.

Confidentiality clauses and IP assignment clauses are enforceable during the employment relationship. Employers should rely on these instruments rather than attempting post-employment restrictions that Bulgarian courts will not uphold.

In-employment non-disclosure obligations are valid and should appear in every contract. Under Bulgarian law, intellectual property created by an employee in the course of their employment belongs to the employer by default.

Every Bulgarian employment contract should include the following protective clauses:

• Confidentiality clause covering trade secrets and proprietary information during employment

• IP assignment clause confirming employer ownership of work-product created in the course of employment

• Data protection clause reflecting GDPR obligations applicable in Bulgaria as an EU member state

• Trade secret protection clause referencing the Bulgarian Trade Secrets Act

Termination and Offboarding in Bulgaria

Bulgarian courts default to employee protection in termination disputes. Notice periods, legal grounds for dismissal, and severance calculations under the Labour Code must be followed precisely to avoid claims.

Final pay must be settled within the statutory deadline. Severance is calculated on gross monthly salary. For employer-initiated mutual termination, the minimum offer is four times the employee's last gross monthly salary.

Lawful grounds for termination include redundancy, poor performance (supported by documented warnings), mutual agreement, fixed-term contract expiry, and termination during probation. Before dismissing an employee, the employer must issue written notice, document the grounds, and consult with any recognized trade union where one is present.

The following steps apply to every offboarding in Bulgaria:

• Issue the termination order in writing, stating the legal ground under the Labour Code

• Settle all outstanding wages and accrued annual leave within the statutory deadline

• Deregister the employee with the National Social Security Institute (NSSI) and the National Revenue Agency (NRA)

• Return company property and revoke all system access on or before the last working day

• Update the employee's трудова книжка (employment record book) and provide any required reference documentation

Business Culture in Bulgaria

Bulgarian workplaces follow a clear hierarchy. Seniority shapes decision-making authority, and formal address is standard until a senior colleague signals otherwise.

• Formal address: Use titles and surnames in initial meetings. First-name terms follow only after an explicit invitation from the senior party.

• Communication style: Bulgarians communicate directly but maintain formality, especially in early-stage business relationships. Blunt disagreement is acceptable; emotional appeals are not.

• Relationship-building: Trust precedes business decisions. Expect several meetings before a counterpart commits to a significant agreement.

• Decision-making pace: Larger organizations tend toward consensus. Decisions move slowly when multiple stakeholders are involved. Build this into project timelines.

• Punctuality: Arriving on time is expected for business meetings. Lateness without notice is treated as disrespectful.

• Negotiation style: Bulgarian counterparts are cautious and evidence-driven. Present data and documented precedents rather than broad assurances.

• Work-life balance: Standard working hours are respected. Overtime is not a cultural expectation and should not be assumed as a default from employees.

Top Sectors to Hire From in Bulgaria

Bulgaria's strongest hiring demand is concentrated in five sectors. Each offers a distinct talent profile and a different set of in-demand roles for foreign employers.

• IT and software: Bulgaria's IT sector accounts for roughly 8% of GDP and is the fastest-growing employer of university graduates (BAIT, 2024). In-demand roles include software engineers, DevOps engineers, and data scientists.

• BPO and shared services: Bulgaria ranks among the top five EU destinations for business process outsourcing. In-demand roles include multilingual customer support agents and finance and accounting specialists.

• Manufacturing and engineering: Growing foreign direct investment in automotive components and electronics is driving demand. In-demand roles include mechanical engineers and quality assurance specialists.

• Healthcare: Bulgaria faces a structural shortage of medical professionals. In-demand roles include nurses and specialist physicians.

• Energy and green technology: EU-funded transition projects are generating consistent demand. In-demand roles include electrical engineers and project managers.

For employers already active in Eastern Europe, the talent pools in Bulgaria and Poland share some overlap in engineering and BPO. See our guide to hire employees in Poland for a direct comparison of costs and compliance requirements.

Top Cities to Hire From in Bulgaria

Bulgaria's talent is concentrated in a handful of cities, each with a distinct specialization. Knowing where to hire reduces sourcing time and improves role fit.

• Sofia: The largest talent pool in Bulgaria. Sofia is the primary source for IT, finance, BPO, and legal services professionals, and hosts most multinational regional offices.

• Plovdiv: Bulgaria's second-largest city. Plovdiv covers manufacturing, engineering, and IT, with a growing tech startup scene attracting younger technical talent.

• Varna: Located on the Black Sea coast, Varna supplies tourism tech, logistics, and BPO roles. Workers here typically have strong English-language skills.

• Burgas: A port city with a growing industrial base. Burgas is the primary source for logistics and energy sector talent.

• Ruse: A cross-border manufacturing hub near Romania. Ruse is well suited for engineering and production roles that benefit from proximity to Romanian supply chains.

For companies comparing European hiring locations, our guide to hire employees in Germany covers a larger but higher-cost talent market with different compliance requirements.

Hire Compliantly in Bulgaria with Gloroots

Gloroots acts as the legal employer in Bulgaria, issuing employment contracts, managing payroll, handling applicable NRA and NSSI reporting and contributions, and administering statutory employee benefits on your behalf.

This model enables companies to employ workers in Bulgaria without establishing their own Bulgarian employing entity.

• No local entity required: Employ workers in Bulgaria without setting up your own Bulgarian employing entity.

• Streamlined onboarding: Employment contracts and required employment registrations are coordinated before the employee starts work, in line with Bulgarian requirements.

• Local payroll and employment administration: Manage applicable Labour Code requirements, payroll, employer social-security contributions, tax withholding, and statutory reporting within the agreed scope. Bulgarian employees are covered by mandatory social-insurance arrangements, with applicable contributions reported through the relevant authorities.

• Predictable pricing: Transparent per-employee pricing helps companies plan employment costs without the administrative overhead of establishing their own local payroll infrastructure.

• Dedicated support: Support with employment contracts, payroll, NRA and NSSI processes, statutory benefits, employee queries, and other HR administration throughout the employment lifecycle.

Gloroots can suit companies entering Bulgaria, hiring their first local employee, or scaling an existing Bulgarian team while avoiding the need to establish and maintain their own local employing entity.

Frequently Asked Questions About Hiring in Bulgaria

Can a foreign company hire employees in Bulgaria without a local entity?

Yes. A foreign company can employ Bulgarian workers through a Global Employer of Record. The EOR becomes the legal employer, issues compliant contracts, runs payroll, and handles all NSSI and NRA filings.

You retain full operational control over the worker's day-to-day tasks. No Bulgarian entity registration is required.

What is the fastest way to hire an employee in Bulgaria?

An Employer of Record is the fastest compliant route. Once the employment contract is signed and filed with the NRA, the worker can begin within days rather than the two to four months required to register a local entity.

Entity setup also carries ongoing administrative costs. An EOR removes that burden entirely.

How are employees classified differently from contractors in Bulgaria?

Bulgarian authorities apply a substance test, not a contract label. If the engaging company controls how, when, and where work is performed, and the worker depends economically on a single payer, that worker is an employee under the Labour Code.

Misclassification triggers retroactive employer social security contributions of 21.68% to 22.38% on all past payments, plus financial penalties.

What are the payroll and tax obligations for employers in Bulgaria?

Employers must withhold a flat 10% income tax at source and remit it to the National Revenue Agency. Employer social security contributions range from 21.68% to 22.38% of gross salary, covering pension, health, unemployment, accident insurance, and supplementary pension.

Contributions are calculated on insurable income between BGN 1,077 and BGN 4,130 per month. Income above the ceiling is not subject to additional contributions.

What statutory benefits must employers provide in Bulgaria?

Employers must provide a minimum of 20 days of paid annual leave, sick leave pay at 70% of salary for the first three days, maternity leave of 410 days, and contributions to state health and pension funds.

Length-of-service supplements apply after one year of employment, at a minimum rate of 0.6% of base salary per completed year of service.

Do non-EU nationals need a work permit to work in Bulgaria?

Yes. Non-EU nationals require a work permit before beginning employment in Bulgaria. The employer typically initiates the application process, and the permit must be in place before the employment contract is filed with the NRA.

EU, EEA, and Swiss nationals may work in Bulgaria without a permit. Processing times for non-EU permits vary by nationality and role type.

What are the rules for terminating an employee in Bulgaria?

Termination must follow the grounds and procedures set out in the Labour Code. Employers must provide written notice, with the standard notice period being 30 days for indefinite contracts, unless a longer period is agreed in the contract.

Severance pay applies in specific circumstances, including redundancy and long-service terminations. Bulgarian courts default to employee protection in any dispute over termination validity.

What is the minimum wage in Bulgaria and how does it affect payroll?

Bulgaria's minimum monthly wage rises to BGN 1,213 (approximately $706) from January 1, 2026. From 2026, this figure also sets the minimum insurable income floor for social security contributions.

Employers cannot structure compensation below this threshold to reduce contribution obligations. All payroll calculations must reflect the updated minimum before the first pay cycle of 2026.