Looking for a PEO and EOR service provider in Bulgaria? You've knocked on the right door! Our European PEO and EOR solutions help companies hire employees in Bulgaria without establishing a legal entity. Hiring and employment in Bulgaria can be complex as a foreign employer. We're here to guide you. EuroDev is the leading provider of EOR & PEO solutions in Europe. We partner with North American businesses that want to expand their business into Europe, including Bulgaria. What should be taken into account when employing or hiring in Bulgaria?

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How it works - PEO in Bulgaria & EOR in Bulgaria

An Employer of Record (EOR) or Professional Employer Organization (PEO) is a company or organization that is legally responsible for paying employees, including dealing with employee taxes, benefits & insurances. As the EOR/PEO of your European or Bulgarian employees, we provide you with tailored payroll, HR, and compliance services. Through this construction, we decrease all the complications such as compliance issues, setting up a foreign establishment, and setting up employment contracts in a different language. 

Benefits of a PEO in Bulgaria & EOR in Bulgaria

  • Expand without an entity 
  • Flexible and cost-effective solution to outsource payroll and HR functions for international expansion 
  • In compliance with foreign local laws & regulations 
  • Minimizes employment liabilities and risks 
  • Reduced risk, as the risks of being an employer fall almost completely on the employer of record 
  • Saves you time to focus on your core business 
  • You manage your employees 
  • EOR and /or PEO takes care of registration and contact with local authorities

Employment Contracts Bulgaria

An employment contract in Bulgaria can be concluded either for an indefinite period or for a fixed period. However, the general rule is that employment contracts are executed for an indefinite period of time.
A fixed-term contract may be used in the following circumstances:

  • If the period of employment is less than three years.
  • For a specific project.
  • Employment contract for the replacement of an absent employee, such as an employee on legal leave such as maternity leave.

It is important to note that the fixed-term employment contract is transformed into an unlimited contract if the employee continues to work for 5 or more working days after the expiry of the agreed period, provided that the employer does not object in writing and the position is vacant. To be valid, the employment contract must be in writing. Any changes to the employment contract must be made in writing, failing which an administrative penalty will be imposed.

The employer may stipulate a probationary period in the employment contract which may not exceed 6 months.

PEO and EOR service providers in Bulgaria will support you with the set-up of a local employment contract.

Employment Termination Bulgaria - Notice Period Bulgaria

Employment contracts may be terminated with or without notice depending on the circumstances or by mutual consent. However, the termination process must be in accordance with Bulgarian Labow law, unless the employer can provide sufficient reason for termination without notice.

  • If the employee or the employer terminates an open-ended employment contract with notice, a notice period of at least 30 days is required. However, it is common for the notice period to be 90 days.
  • The notice period for a fixed-term contract is 3 months, but not more than the remaining term of the contract.
  • No notice is required if the employment contract is to expire (as in the case of a fixed-term contract).

Social Security for Employers in Bulgaria

In Bulgaria, the total contribution rate to the national insurance is 32.7% to 33.4%, of which 18.92% to 19.62% is paid by the employer and 13.78% by the employee. Details of the employer's contributions are shown below.

Employer Payroll (Social Security) Contributions %
Social Security 13.72%
Health Insurance  4.80%

Accident at Work & Occupational Illness Fund

0.40% - 1.10%
Total Additional Employment Costs 18.92% - 19.62%

 

Average Salary Bulgaria & Average Employer Costs Bulgaria

The average salary in Bulgaria is 48,542 BGN, which is equivalent to 28.467,88 USD. This is slightly less than half the average annual salary in the United States, which is $65,835.58 USD. As an employer, the actual employer cost is approximately between 18.92% and 19.2% higher than the gross annual salary in Bulgaria. Based on an annual salary of 28.467,88 USD, employment costs would be between 33,854. 00 USD and 33, 933.71 in Bulgaria. 

To learn more about the average salaries in Europe and the actual employment costs in Europe, we invite you to read this article on the Costs of hiring European employees.

Working Hours Bulgaria

A normal workweek consists of 40 hours of work, which is equivalent to 8 hours per day in a 5-day workweek.
Overtime is in principle discouraged. However, in exceptional cases, overtime is allowed in the case of extended activities.
The maximum number of authorized overtime hours is as follows:

  • up to 150 hours per year ;
  • up to 30 hours per calendar month for day work or up to 20 hours for night work;
  • up to 6 hours per week for day work or up to 4 hours for night work; and
  • for 2 consecutive days: up to 3 hours for day work or 2 hours for night work.

Overtime is prohibited for employees who have not reached the age of 18, pregnant women, and disabled persons whose health is affected by overtime. Overtime is also prohibited for mothers of children under 6 years of age, as well as mothers caring for disabled children (regardless of the age of the children) unless they have given their written consent.

Overtime is paid at 150% of the regular wage rate for the employee's regular working hours, 175% for weekend overtime, and 200% for work on public holidays.

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Paid Vacation Leave Bulgaria

Each year, an employee is entitled to a basic annual leave with pay of at least 20 days per year. Longer periods of annual leave may be agreed upon in an individual employment contract or in a collective agreement.
Employees who work in unhealthy or other special conditions are entitled to additional paid annual leave of at least 5 working days per year.

To learn more about the average paid vacation days in Europe and how Bulgaria compares to the rest of Europe, we invite you to read our blog on paid vacation days in Europe.

Public Holidays Bulgaria

The most important public holidays, when most Bulgarian employees have the day off, are listed below. If a public holiday falls on a non-working day, such as a Saturday or Sunday, employees can redeem the holiday time during the week. 

  • New Year’s Day - 1 January
  • Liberation Day - 3 March
  • Orthodox Good Friday - 22 April
  • Orthodox Holy Saturday - 23 April
  • Orthodox Easter - 24 April
  • Orthodox Easter Monday - 25 April 
  • Labour Day - 1 May
  • St. George’s Day - 6 May
  • Education and Culture, and Slavic Script Day - 24 May
  • Unification Day - 6 September
  • Independence Day - 22 September 
  • Christmas Eve - 24 December
  • Christmas Day - 25 December
  • 2nd Day of Christmas - 26 December 

Add 2022 Bulgaria Public Holidays to your calendar

Maternity and Paternity Leave Bulgaria

The employee is entitled to 410 days of paid maternity leave, starting 45 days before the date of delivery of the child. During this period, the employee receives a monthly pay amounting to 90% of her normal salary, paid by the Bulgarian National Health Insurance Fund.

Fathers are entitled to 15 days of compulsory paternity leave, paid at 90% of the normal salary rate. Fathers are entitled to this right as long as they have completed at least one year of work.

When the child has reached the age of six months, the remainder of the maternity leave can be shared between the mother and the father with the mother's explicit consent.


Learn more about PEO and EOR in Europe:

Get in contact or request a quote

 

Learn more about PEO and EOR in other European countries:


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PEO and EOR in
the UK

Currency: Pound Sterling (GDP)
Payroll Frequency: Monthly
Employer Taxes: 13.80%

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PEO and EOR in
Germany
 

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 19% - 20%

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PEO and EOR in
Italy
 

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 29% - 32%

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PEO and EOR in
France 

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 40% - 50%

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PEO and EOR in
Netherlands

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 23.59%

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PEO and EOR in
Spain

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 29.90%

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PEO and EOR in
Poland

Currency: Polish Złoty (PLN)
Payroll Frequency: Monthly
Employer Taxes: 19.48% - 22.14%

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PEO and EOR in
Denmark

Currency: Danish Kronne (DKK)
Payroll Frequency: Monthly
Employer Taxes: 14,892 DKK per year

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PEO and EOR in
Ireland

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 15.05%

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PEO and EOR in
Portugal

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 26.50%

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PEO and EOR in
Belgium

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 25% - 27%

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PEO and EOR in
Slovenia

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 16.10%

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PEO and EOR in
Greece

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 22.54%

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PEO and EOR in
Austria

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 21.23%

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PEO and EOR in
Finland

Currency: Euro (EUR)
Payroll Frequency: Monthly
Employer Taxes: 19.85% - 21.25%

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PEO and EOR in
Croatia

Currency: Croatian Kuna (HRK)
Payroll Frequency: Monthly
Employer Taxes: 16.50%

Interested in European expansion? Exciting! I am looking forward to discussing your European HR needs.

Monique Ramondt Sanders

Executive Vice President | HR Outsourcing