Payroll and Benefits Guide Bulgaria
Last updated: May 03, 2023
Contributions
Employer
Employer Payroll Contributions
|
14.12% – 14.82% |
Social Security (maximum base cap is 3,400 BGN) |
|
4.80% |
Health Insurance |
|
0.40% – 1.10% |
Accident at Work & Occupational Illness Fund |
|
19.32% – 20.72% |
Total Employment Cost |
Employee
Employee Payroll Contributions
|
10.58% |
Social Security (maximum base cap is 3,400 BGN) |
|
3.20% |
Health Insurance |
|
13.78% |
Total Employee Cost |
Employee
Employee Income Tax
| 10.00% | Flat Rate |
Employer taxes
Employee taxes
Minimum Wage
General
The minimum wage is 780 BGN per month.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle in Bulgaria is generally monthly, with payment being made on the last working day.
13th Salary
There are no provisions in the law regarding 13th salaries.
Working Hours
General
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 contract or collective agreements. In general, overtime maximum limits are set at 3 hours per day (across two consecutive days), 6 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.
Working Week
Monday-Friday
Leave
Paid Time Off
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.
Public Holidays
There are 12 public holidays in Bulgaria.
Sick Days
The first three days of sickness are paid for by the employer at a rate of 70% of the regular salary. From the fourth 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 Leave
All female employees are eligible for maternity benefits, consisting of 410 days of paid maternity leave and generally commenced 45 days before the due date. 135 days of maternity leave are considered mandatory.
The maternity benefit will be paid to the employee at 90% of the regular salary rate by the NHIF.
Paternity Leave
Fathers are entitled to mandatory paid paternity leave of 15 days paid at a rate of 90% of the regular salary rate from the child’s birth. Fathers are eligible for this entitlement once they have completed at least one year of employment.
Once the child is six months old, any remaining maternity leave can be shared between the mother and the father with the mother’s consent.
Parental Leave
In Bulgaria, Parental leave to raise a child is available with the employer’s permission until the child is two years old. This leave is transferrable between the mother, the father, or grandparents.
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.
Termination
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).
Notice of termination must be in writing and sent to the relevant governmental authorities.
Notice Period
The statutory minimum notice period in Bulgaria is 30 days’ notice, however, it is common practice to be 90 days.
Severance Pay
In Bulgaria, severance pay is mandatory when applicable. The amount differs based on the type of termination, (i.e. termination by the employee, termination by mutual agreement, termination without cause, and with cause in an indefinite term agreement and fixed-term agreement). It is common for the severance payment to be calculated as no less than four months’ gross salary and paid within no more than seven days after the termination.
Should the cause be a company downsizing decision, redundancy payments are generally one-month payments as severance unless stipulated differently within the employment contract.
Probation Period
The probation period for permanent employees is generally three months, up to a maximum of 6 months.
VISA
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
General
The standard rate in Bulgaria is 20%.
Stay up to date on payroll & employment law changes
Version History
The Maximum Social Insurance Income calculation base increases from BGN 3,000 to BGN 3,400. All workers who receive a gross monthly salary over BGN 3,400 will be obliged to pay social security contributions based on this new insurance base. Employer contributions will also be calculated on this increased salary base, meaning the monthly Employer Social Insurance contribution rate will increase from is BGN 567.60 to BGN 643.28.
Questions & Answers
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Payroll and Benefits Guide
in Bulgaria
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Day | Date | Holiday | Notes |
|---|---|---|---|
| Sunday | Jan-1 | New Year’s Day | |
| Monday | Jan-2 | New Year’s Day | Day Off in Lieu |
| Friday | Mar-3 | Liberation Day | |
| Friday | Apr-7 | Good Friday | |
| Monday | Apr-10 | Easter Monday | |
| Monday | May-1 | Labor Day | |
| Saturday | May-6 | St. George’s Day | |
| Monday | May-8 | St. George’s Day | Day Off in Lieu |
| Wednesday | May-24 | Culture and Literacy Day | |
| Wednesday | Sep-6 | Unification Day | |
| Friday | Sep-22 | Independence Day | |
| Sunday | Dec-24 | Christmas Eve | |
| Monday | Dec-25 | Christmas Day | |
| Tuesday | Dec-26 | Second day of Christmas | |
| Wednesday | Dec-27 | Christmas holiday | Day Off in Lieu |
Can an employer extend an employees working hours?
Yes, but hours can only be extended if specific guidelines are followed:
-Reduction of working hours on other working days.
-A written order is required no later than 3 working days before.
-An extension of working hours can be carried out only for employees who work on a daily basis.
-The extended working day may not last longer than 10 hours for employees with a normal working day duration of up to 8 hours. The extension of working hours is allowed for not more than 20 working days in a row and for not more than 60 working days within one calendar year.
-The extension of working hours is not allowed for employees who have not reached the age of 18 and for pregnant employees.
Hello,
Can you tell me if Additional health insurance and food vouchers are considered additional pay or bonuses in Bulgaria?
In Bulgaria, additional health insurance and food vouchers can be considered additional pay or bonuses, depending on the specific circumstances and the agreement between the employer and the employee.
Additional health insurance and food vouchers may be provided as a benefit by the employer as part of the overall compensation package, or they may be offered as an additional payment on top of the employee’s regular salary.
Hello,
How is a yearly bonus taxed in Bulgaria?
Hello, the mandatory salary increase of 0.6% applied each year of service then this will be taxed the same as salary.