Bulgaria Employment Law & Compliance Guide for Employers
Key employment laws in Bulgaria: what employers need to know
Employment in Bulgaria is governed mainly by the Кодекс на труда [Labour Code], with contributions set by the Social Insurance Code and collected, together with income tax, by the NRA [National Revenue Agency]. Bulgaria adopted the euro on 1 January 2026, so salaries, the minimum wage and contribution caps are now in EUR. Foreign employers are often surprised by the mandatory seniority bonus, the duty to notify the NRA before an employee starts work, and the cap on the share of non-EU staff. This page summarises the core employer rules with official sources.
Bulgaria employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | EUR 620.20 gross a month (BGN 1,213 at the fixed rate of 1.95583) for full-time work from 1 January 2026, the first minimum wage set in euro. Part-time staff receive it pro rata. | Eurostat – monthly minimum wages (earn_mw_cur) |
| Standard working hours | 8 hours a day, 40 hours a week over a five-day week. Employers can extend the working day to 10 hours (48 hours a week) for up to 60 days a year, compensated by shorter days later. | EURES – living and working conditions in Bulgaria (European Commission) |
| Overtime pay | Supplements of at least 50% on working days, 75% on rest days and 100% on public holidays. Overtime is allowed only in cases listed in the Labour Code and is capped at 150 hours a year. | EURES – living and working conditions in Bulgaria (European Commission) |
| Paid annual leave | At least 20 working days a year. At least 5 extra days apply for irregular working hours and harmful conditions; people with a disability of 50% or more and workers under 18 get at least 26 days. | EURES – living and working conditions in Bulgaria (European Commission) |
| Public holidays | 14 public holidays: 1 Jan, 3 Mar, Orthodox Good Friday, Holy Saturday, Easter Sunday and Monday, 1 May, 6 May, 24 May, 6 Sep, 22 Sep, 24–26 Dec. Most fixed holidays falling at the weekend move to the next working day. | Labour Code, art. 154 (Lex.bg) |
| Sick leave | The employer pays the first 3 working days at 70% of average daily gross pay. From day 4, NSSI [National Social Security Institute] pays 80% of average daily insured income, capped at average net pay, after 6 months of insurance. | Social Insurance Code (Lex.bg) |
| Maternity and parental leave | 410 days of pregnancy and childbirth leave (45 before birth), paid by NSSI at 90% of average insured income, then paid child-raising leave until age 2 at a flat rate. Fathers get 15 days of paid leave at birth. | EURES – living and working conditions in Bulgaria (European Commission) |
| Probation period | Up to 6 months, agreed in the contract in favour of the employer, the employee or both. The party it favours can end the contract during probation without notice. | EURES – living and working conditions in Bulgaria (European Commission) |
| Notice period | 30 days for open-ended contracts unless a longer period of up to 3 months is agreed (equal for both sides); 3 months for fixed-term contracts, but no longer than the remaining term. Disciplinary dismissal needs no notice. | EURES – living and working conditions in Bulgaria (European Commission) |
| Severance pay | Up to 1 month's gross pay for dismissal due to closure, staff cuts, reduced workload or work stoppage; 2 months for dismissal on health grounds (5+ years' service); 2 months on retirement, or 6 months after 10+ years with the employer. | Labour Code, art. 222 (Lex.bg) |
| Employer social contributions | 18.92%–19.62% of gross pay: pension, sickness and maternity, unemployment, work accident (0.4–1.1%), guaranteed receivables fund and 4.8% health insurance. Capped at insurable income of EUR 2,300 a month from 1 August 2026 (EUR 2,111.64 before). | PwC Worldwide Tax Summaries – Bulgaria, other taxes (reviewed August 2026) |
| Employee social contributions | 13.78% of gross pay, of which 10.58% social security (pension, sickness and maternity, unemployment) and 3.2% health insurance, up to EUR 2,300 a month from 1 August 2026. The employer withholds it monthly. | PwC Worldwide Tax Summaries – Bulgaria, other taxes (reviewed August 2026) |
| Income tax on salaries | Flat 10% on gross pay minus the employee's mandatory contributions, withheld monthly by the employer and paid with contributions by the 25th of the following month. | EURES – living and working conditions in Bulgaria (European Commission) |
| Mandatory bonuses and 13th-month pay | No 13th-month pay is required, but a seniority bonus of at least 0.6% of base salary for each year of service and professional experience is mandatory. Overtime and night-work supplements also apply. | Labour Code (Lex.bg) |
| Work permits for foreign nationals | Non-EU nationals generally need a single permit (residence and work) or an EU Blue Card, requested by the employer. The Employment Agency approves labour-market access and the Migration Directorate issues the permit. Non-EU staff may not exceed 20% of the workforce (35% for SMEs). | Employment Agency (Агенция по заетостта) |
| Employment contract requirements | Written contract, on paper or with a qualified e-signature. Notify the NRA within 3 days of signing and before work starts, and give the employee copies of the contract and the NRA notice before day one. | EURES – living and working conditions in Bulgaria (European Commission) |
Employer obligations in Bulgaria, topic by topic
Filter by primary service relevance
Does an employment contract in Bulgaria have to be in writing, and what must the employer file?
What are the working hours and overtime rules in Bulgaria?
What is the minimum wage in Bulgaria in 2026, and is a seniority bonus required?
How much leave do employees get in Bulgaria?
How much does an employee cost in Bulgaria on top of gross salary?
How can an employer dismiss an employee in Bulgaria, and what compensation is owed?
What permit does a non-EU national need to work in Bulgaria?
Is it risky to use contractors instead of employees in Bulgaria?
What did euro adoption on 1 January 2026 change for employers in Bulgaria?
Key employment laws in Bulgaria and official sources
- Labour Code (Кодекс на труда) — Contracts, working time, pay, leave, termination grounds, notice and compensation.
- Social Insurance Code (Кодекс за социалното осигуряване) — Contribution rates, insurable income limits and sickness and maternity benefits.
- Personal Income Taxes Act (Закон за данъците върху доходите на физическите лица) — The 10% flat income tax and the employer’s withholding and reconciliation duties.
- Labour Migration and Labour Mobility Act — Labour-market access for third-country nationals, single permits, EU Blue Cards and the cap on non-EU staff.
- Act on the Introduction of the Euro in the Republic of Bulgaria — Fixed conversion rate, rounding and automatic conversion of contract and legal amounts from 1 January 2026.
FAQs: hiring employees in Bulgaria
Can a foreign company hire employees in Bulgaria without a local entity?
Yes. A foreign company can register with the NRA as an insurer and employ staff directly under Bulgarian law, filing contracts, contributions and tax itself. It must still notify the NRA of each contract before work starts and may create a tax presence. Sponsoring non-EU staff requires a Bulgarian employer. Many companies use an Employer of Record, which employs the person locally, or set up a branch or EOOD [single-owner limited company].
How much does an employee cost in Bulgaria on top of gross salary?
Employer contributions add 18.92% to 19.62% of gross pay, including 4.8% health insurance and a work-accident rate of 0.4–1.1% that depends on the sector. Contributions stop above the maximum insurable income of EUR 2,300 a month from 1 August 2026 (EUR 2,111.64 before). Employers also pay the mandatory seniority bonus of at least 0.6% of base salary per year of service and the first 3 days of sick leave.
What is the minimum wage in Bulgaria in 2026?
The minimum wage is EUR 620.20 gross a month for full-time work from 1 January 2026, the first time it has been set in euro after Bulgaria joined the euro area. It equals BGN 1,213 at the fixed rate of 1.95583. Part-time employees receive it pro rata, and contributions are also due on at least the minimum insurable income for each occupation.
How much notice and severance does an employer owe when dismissing an employee in Bulgaria?
Notice is 30 days for open-ended contracts, or up to 3 months if agreed, and 3 months for fixed-term contracts within the remaining term. Dismissal for closure, staff cuts, reduced workload or work stoppage triggers compensation of up to 1 month’s gross pay for unemployment. Retirement triggers 2 months’ pay, or 6 months after 10 years’ service. Unused leave must also be paid out.
Can a company hire a foreign national in Bulgaria, and what permit is needed?
Yes. EU, EEA and Swiss citizens need no permit. Others usually need a single permit for residence and work or an EU Blue Card, requested by the Bulgarian employer. The Employment Agency checks the local labour market and the cap on non-EU staff of 20% of the workforce (35% for SMEs), and the Migration Directorate issues the permit. Pay must match Bulgarian staff in the same role.
Is it risky to engage contractors instead of employees in Bulgaria?
Yes, if the contractor works like an employee. The Labour Code requires work under another’s direction to be done under an employment contract. Labour inspectors can issue a mandatory instruction recognising the employment relationship and fine both the company and the worker, and the NRA can collect unpaid contributions and tax. Civil contracts suit defined projects with independent contractors.
Related NNRoad resources for Bulgaria: Employer of Record in Bulgaria · Payroll in Bulgaria · Hiring foreign employees in Bulgaria · Contractors and on-demand talent in Bulgaria · Bulgaria employer cost calculator
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Regulation Updates in Bulgaria
Discover the latest employment and compliance updates in Bulgaria — helping you stay ahead in a changing regulatory landscape.
Draft Amendment to the Foreigners in the Republic of Bulgaria Act
What it is: A draft amendment to the Foreigners in the Republic of Bulgaria Act proposes that holders of a single residence and work permit may change employers while remaining in Bulgaria.
What it changes: The change creates employer-facing updates to work permits, including notification obligations to the Migration Directorate, and allows registration with the Employment Agency during periods of unemployment.
Who is affected:
- Workers holding a single residence and work permit
- Employers of those workers
What employers should do:
- Prepare for potential notification obligations to the Migration Directorate
- Monitor any employer-facing changes to work permits
- Consider processes for registering unemployed workers with the Employment Agency when applicable
Notes: Effective month: 2026-04.
Ordinance amending and supplementing Ordinance No. 9 of 2006 on protection of workers from risks related to asbestos exposure at work
What it is: An ordinance amending and supplementing Ordinance No. 9 of 2006 on protection of workers from risks related to asbestos exposure at work, updated to tighten employer obligations.
What it changes: The update strengthens requirements for risk assessment, control measures, and remediation related to asbestos exposure, increasing employers’ compliance duties where asbestos risk exists.
Who is affected:
- Employers with workplaces where asbestos risk exists
What employers should do:
- Review and update risk assessment processes to align with the strengthened requirements.
- Enhance control measures and remediation activities for asbestos exposure as specified by the ordinance update.
Notes: Effective month: 2026-02.