Currency
Bulgarian Lev (BGN)
EOR IN Bulgaria
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A guide to employing and growing your team in Bulgaria
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Bulgaria’s labor market has undergone a significant transformation with the official adoption of the Euro on January 1, 2026. All salaries, social security thresholds, and benefits are now calculated and paid in Euros at the fixed exchange rate of 1.95583 BGN = EURO1. The country maintains its reputation as a highly competitive business environment due to its flat-tax system. As of April 2026, the national minimum wage is EURO620.20 per month (approximately EURO3.74 per hour), marking a 12.6% increase from the previous year.
Employer Contributions
Pension Fund: 8.22%
Supplementary Compulsory Pension: 2.80%
Health Insurance: 4.80%
General Disease and Maternity: 2.10%
Unemployment Fund: 0.60%
Work Accident & Occupational Illness: 0.4% – 1.1% (Varies by industry risk)
Professional Experience Supplement: 0.6% (Additional gross salary per year of work experience)
Total Employer Contribution: ~18.92% – 19.62%
Employee Payroll Taxes
Pension Fund: 6.58%
Supplementary Compulsory Pension: 2.20%
Health Insurance: 3.20%
General Disease and Maternity: 1.40%
Unemployment Fund: 0.40%
Total Employee Contribution: 13.78%
Employee Income Tax Rates
Bulgaria utilizes one of the simplest and lowest personal income tax regimes in the European Union.
Flat Income Tax: 10% (Applied to the taxable base after social security deductions).
Maximum Insurable Income: In 2026, social security contributions are capped at EURO2,111.64 per month. Any income earned above this threshold is subject only to the 10% flat tax, not social security.
Dividends: Taxed at a preferential rate of 5%
Statutory Leave
Employees are entitled to a minimum of 20 working days of paid annual leave per year, provided they have at least four months of service. Bulgaria also observes approximately 12 to 15 public holidays; if a holiday falls on a weekend, the following Monday is typically observed as a compensatory non-working day.
Pregnancy and Maternity Leave
Bulgaria offers one of the world’s most generous maternity programs. Mothers are entitled to 410 days of paid maternity leave, starting 45 days before the due date. The National Social Security Institute (NSSI) pays 90% of the average daily gross wage. After the 410 days, mothers can take childcare leave until the child reaches age two, paid at a rate determined by the state budget (currently linked to the minimum wage if the child is not in state care).
Paternity Leave
Fathers are entitled to 15 days of paid paternity leave immediately following the birth, paid at 90% of their salary. Once the child reaches 6 months, the mother may transfer the remaining portion of her 410-day maternity leave to the father. Fathers also have a right to 2 months of paid parental leave for a child under age 8.
Work-Related Injury Leave
Sick Leave: The employer pays 70% of the average daily gross wage for the first 2 days. From the 3rd day, the NSSI pays 80% (or 90% for accidents). Marriage Leave: 2 working days.Bereavement: 2 working days for the death of a close relative. Exam Leave: Paid leave is available for employees enrolled in recognized educational programs, subject to employer approval.
Termination Process
Termination must be issued in writing. Valid grounds include mutual agreement, job redundancy, or disciplinary reasons. In cases of redundancy (dismissal through no fault of the employee), the employer must pay severance equal to at least one month’s gross salary.
Notice Period
Notice periods are mandatory and vary based on the contract type:
Indefinite Contracts: 30 days for both parties (can be extended up to 3 months in the contract).
Fixed-term Contracts: 3 months, but no longer than the remaining time on the contract.
Indemnity: If the required notice is not given, the party ending the contract must pay the other party a “notice indemnity” equal to the salary for the missing notice period.
Probation Period
The maximum probation period is 6 months. During this time, the party in whose favor the probation was established (usually the employer) can terminate the contract immediately without notice or explanation.