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Our global employment products, including G-P Meridian Prime™ and G-P Meridian Core™, are backed by the largest team of HR and legal experts in the industry. We handle the growing complexities of compliant global expansion — so you can focus on opportunities ahead.
As a global EOR expert, we manage payroll, employment contract best practices, statutory and market norm benefits, employee expenses, as well as severance and termination. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in 180+ countries around the world, quickly and easily.
Hiring in Bulgaria
The Bulgarian Labour Code governs the worker-employer relationship in Bulgaria, regardless of worker or corporate nationality. Written employment contracts are required under the code, and it has clear rules governing employee termination, including protection from unlawful dismissal. Employees may take action against employers if they feel they have been unlawfully dismissed. Remedies include reinstatement, back wages, and modification of employment records.
Employment contracts in Bulgaria
The general rule in Bulgaria is that employment contracts are executed for an indefinite duration. If the employment contract is executed for a fixed term, an explicit agreement between both parties is required and the contract cannot exceed 3 years. A fixed-term contract can be used under the following circumstances:
- For completion of specific work (project work)
- For temporary replacement of absent employee
- For short-term, temporary, or seasonal work
If the conditions for the fixed-term contract are not present, the contract is considered to be for an indefinite duration (the fixed-term clause is null and void).
Working hours in Bulgaria
The standard workweek in Bulgaria consists of a maximum of 8 hours per day, 5 days a week. Overtime can be performed in accordance with the Labour Code and once agreed upon by both parties.
Offering additional leave as compensation for overtime work is forbidden. The additional payment for overtime is as follows:
- 50% on weekdays
- 75% on weekends
- 100% on public holidays
Holidays in Bulgaria
Bulgaria celebrates several public holidays for which employees are given the day off, including:
- New Years Day
- Liberation Day
- Labor Day
- Day of the Bulgarian Armed Forces
- Day of the Bulgarian Alphabet, Education, and Culture
- Union Day
- Independence Day
- Christmas
- Good Friday, Holy Saturday, and Easter
Public holidays that occur on the weekend are carried over to the following Monday (with the exception of Easter Saturday and Sunday). For faith groups other than Eastern Orthodox Christians, Bulgarian labor law and legislation on the civil service allows days off, either as paid or unpaid leave, for these groups’ holiest days. Bulgaria’s Cabinet decrees such a list each year.
Vacation days in Bulgaria
Employees in Bulgaria are entitled to a minimum of 20 business days off per year. Employees should use their annual leave entitlement during the year earned.
If annual leave is unused, the days are transferred to the following calendar year. Upon termination of the employment contract, employees should receive the monetary value of their paid leave entitlement.
Bulgaria sick leave
Employees are entitled to sick leave for temporary incapacity to work due to general sickness and other cases prescribed by the Labour Code. The temporary disability must be evidenced through a medical certificate from a registered medical practitioner.
The sick leave or injury indemnity payments amount to the following:
- 70% of the employee’s daily gross salary
- 90% of the employee’s daily gross salary in the case of a work-related accident or illness
An obligatory 6 months of work (and social security payments) must be completed before the employee is eligible for sick leave compensation, unless the sick leave is due to a work accident or illness, or if the employee is a minor.
If an employee has a disabled or ill child, or family member, the employee is entitled to sick leave as if it were their own disability or illness (carers’ leave).
Maternity/paternity leave in Bulgaria
Pregnant employees are entitled to 410 days of paid maternity leave, 45 of which must be taken before giving birth. Employees on maternity leave receive indemnity payments from the National Social Security Fund, which amount to 90% of the employee’s gross salary.
Fathers are entitled to 15 days of paid paternity leave after the birth of a child. Once the child has reached at least 6 months, the father can use any unused maternity leave with the mother’s consent.
Adoptive parents are entitled to 365 calendar days for the adoption of a child under 5 years of age from the date of adoption.
Once the maternity leave has expired, an employee is entitled to paid parental leave until the child reaches 2 years of age amounting to the following:
- 2 calendar years for the first, second, and third child
- 6 months for each additional child
Parental leave is subject to some restrictions, the father of a child (8 years old or younger) is entitled to leave of up to 2 months. In order to exercise this right, the employee must notify the employer at least 10 working days in advance. Fathers using such leave are entitled to statutory compensation for the leave period in accordance with amendments to the Social Insurance Code.
Health insurance in Bulgaria
Health insurance is provided by the National Health Insurance Fund, and it is mandatory that all residents contribute to this fund.
Bulgaria supplementary benefits
Private health insurance is sometimes provided by employers.
Generally, we recommend budgeting 45% for benefits on top of the gross salary to calculate the total employee cost including benefits in Bulgaria.
Bonuses
The 13th-month bonus in Bulgaria is considered a gratuity and is not required by local law. An employer’s internal bonus policies should be communicated to employees to avoid possible labor law discrimination disputes.
Termination/severance in Bulgaria
The employer can set a probationary period of up to 6 months in the employment contract. Employment contracts may be terminated with or without notice depending on the circumstances or by mutual consent:
- If the employee or employer terminates an indefinite employment contract with notice, at least a 30-day notice is required.
- The notice period for a fixed contract is 3 months but not more than the remaining period of the contract.
- No notice is required if the employment contract is due to expire (as in the case of a fixed contract).
There is no statutory requirement regarding severance pay, however, employees are entitled to redundancy pay equal to 1 month’s salary in the case of individual or collective dismissal on economic grounds:
- If employment is terminated as a result of illness and the employee has been in service for at least 5 years, 2 months’ severance pay applies.
- If employment is terminated because the employee has acquired the right to pension, 2 months’ severance pay applies or 6 months if the employee has been in service for 10+ years.
Paying taxes in Bulgaria
Employees receive indemnity payments from the National Social Security Fund, and the amount is determined by the Social Security Budget Act.
Social security contributions are calculated as follows:
- Basic Social Security (unemployment, etc.): 24.7% – 25.4% of gross salary
- Pension Insurance: 5% of gross salary
- Health Insurance: 8% of gross salary
Of the above, employers pay 60% and employees the remaining 40%. Furthermore, employers have to contribute 0.4% to 1.1% of gross salary for accident insurance.
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading global employment platform. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
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