Download Bulgaria Guide
Public Holidays Calendar
|Saturday||Jan-1||New Year's Day|
|Friday||Apr-22||Orthodox Good Friday|
|Saturday||Apr-23||Orthodox Holy Saturday|
|Monday||Apr-25||Orthodox Easter Monday|
|Monday||May-2||Day off in lieu of Labor Day||Holidays falling on Sunday are observed on the following Monday|
|Friday||May-6||Saint George's Day|
|Tuesday||May-24||Saints Cyril and Methodius Day|
|Monday||Dec-26||Day off in lieu of Christmas Day||Holidays falling on Sunday are observed on the following Monday|
|Monday||Dec-26||Day after Christmas|
Last updated: Apr 13, 2022
Payroll and Benefits Guide
Papaya Offers Complete Payroll, PEO and Contractor Management Services For Bulgaria
An emergency epidemic has been declared until April 30, and a law for the measures and actions during the state of emergency has been enacted.
Changes include but are not limited to:
- In 2021, unpaid leave of up to 90 working days is considered work and insurance experience.
- Employees must pay health contributions of 26 BGN per month while on unpaid leave in order not to lose their health insurance rights.
- When an order terminates the work of the enterprise, part of the enterprise, or individual employees, the employer is allowed to provide paid annual leave to the employee without their consent.
- An employer can establish part-time work for full-time employees for the whole period or a period of the declared state of emergency.
Also, during a state of emergency, an employer may not refuse to allow an employee to take paid annual leave or unpaid leave if they are:
- Pregnant or in an advanced stage of in vitro treatment
- Mother or adoptive mother of a child up to 12 years of age or of a child with a disability regardless of age
- An employee who is a single father or adoptive parent of a child under 12 years of age or of a child with a disability regardless of his or her age
- An employee with a permanently reduced working capacity of 50% or more
Employer Payroll Contributions
Employee Payroll Contributions
Employee Income Tax
The minimum wage is 710.00 BGN per month. This is also for registered farmers and tobacco growers.
The payroll cycle in Bulgaria is generally monthly, with payment being made on the last working day.
There are no provisions in the law regarding 13th salaries.
The standard working hours in Bulgaria are 8 hours per day, 40 hours per week.
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.
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.
There are 15 public holidays in Bulgaria.
All employees are entitled to up to 18 months of sick leave.
Employees must provide a medical certificate within 48 hours of the first day of sickness. The first three days of sickness are paid for by the employer at a rate of 70% of the regular salary. The National Social Security Fund then takes over the payments from day four (as long as the employee has completed at least six months of service or social security payments) at 80% of the regular salary rate or 90% for work-related sick leave or injury.
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 as 90% of the regular salary rate by the NHIF.
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.
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.
Employees are entitled to two days of paid leave in the event of their marriage.
Employees are also entitled to two days of leave to attend the funeral of a family member.
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.
The statutory minimum notice period in Bulgaria is 30 days’ notice, however, it is common practice to be 90 days.
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.
The probation period for permanent employees is generally three months, up to a maximum of 6 months.
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.
20% standard rate.