Payroll and Benefits Guide - Bulgaria

Bulgaria
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Currency

Bulgarian Lev (BGN)
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Capital

Sofia
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Employer Taxes

19.32% – 20.72%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Bulgaria is located in Southeast Europe and is bordered by five countries.

Bulgarian is the official language of Bulgaria, which uses the Cyrillic alphabet. It is one of the oldest and continuously used writing systems in the world.

Bulgaria was once part of the Roman Empire and later became the center of the medieval Bulgarian Empire.

Bulgaria is famous for its traditional folk dances and music.

The Bulgarian Rose Valley is famous for its production of high-quality rose oil.

Bulgaria is home to many ancient Thracian ruins and artifacts.

Bulgaria

Contributions

Employee Payroll Tax

Social Security (maximum base cap is 3,400 BGN)10.58%
Health Insurance3.20%

Employer Payroll Tax

Social Security (maximum base cap is 3,400 BGN)14.12% – 14.82%
Health Insurance4.80%
Accident at Work & Occupational Illness Fund0.40% – 1.10%

Payroll

Payroll Cycle

In Bulgaria, payments are typically made once each month on the last business day.

13th Salary

The law makes no mention of thirteenth salary.

Work Hours and Week

In Bulgaria, a typical workday consists of eight hours, or 40 hours per week.

Overtime

Work that goes above the 40-hour regular workweek must be compensated as overtime and be in accordance with the employment contract or collective bargaining agreements. The most common overtime restrictions are 3 hours per day, 6 hours per week, 30 hours per month, and 150 hours annually.
Bulgaria

Leave

Paid Time Off

After four months of employment and a minimum of 20 days of paid leave per year, Bulgarian employment contracts define paid leave.

Public Holidays

In Bulgaria, There are 12 public holidays.

Sick Days

The employer will cover the first three sick days at a rate of 70% of the regular pay. If the worker has completed at least six months of service or Social Security payments, The National Social Security Fund will take over the payment starting on the fourth day of sickness at 80% of the regular salary rate or 90% for work-related sick leave or accident. Any employee may request up to 18 months of paid sick time.

Maternity Leave

Maternity benefits, which include 410 days of paid leave that typically begin 45 days before the due date, are available to all female employees. Maternity leave must be taken for 135 days. The NHIF will pay the employee’s maternity benefit at a rate of 90% of their usual wage.

Paternity Leave

Fathers are entitled to 15 days of mandated paid paternity leave starting at the child’s birth, paid at a rate of 90% of their usual pay. Once they have worked for at least a year, fathers are qualified for this benefit.

Parental Leave

Parental leave is permitted in Bulgaria until the child is two years old with the employer’s consent. The mother, the father, or the grandparents may share this leave.

Termination

Termination Process

Unless an employer can demonstrate adequate grounds for termination without notice (for example, because of misconduct), the termination procedure is standard in Bulgaria based on termination reasons stated in the Bulgarian Labor Law.

Written notice of termination must be delivered to the appropriate governmental authorities.

Notice Period

The minimum notice period required by law in Bulgaria is 30 days, but 90 days is more frequently the case.

Severance Pay

Severance pay is required in Bulgaria where appropriate. The amount varies depending on the form of termination, including terminations made by the employee, those reached by mutual consent, those made with or without cause under indefinite duration or fixed-term agreements. It is typical for the severance payout to be computed at a minimum of four months’ gross pay and to be disbursed no later than seven days after the termination.

Unless specifically stated otherwise in the employment contract, redundancy payments are typically one-month payouts as severance should the cause be a company downsizing decision.

Probation Period

Probation Period

Permanent staff often go through a three- to six-month probationary phase.

Immigration

Anyone from outside Bulgaria who want to work there must first apply for a residency visa.

According to the law, foreign nationals may apply for one of the three categories of resident permits in Bulgaria: long-term or extended residence visas, residence visas for foreign employees, or Bulgarian residence visas.

VAT

In Bulgaria, the standard rate is 20%.