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Overview
Bulgarian Lev (BGN)
CURRENCY
Sofia
CAPITAL
monthly
PAYROLL FRECUENCY
15
PUBLIC HOLIDAYS
18.92% to 19.62%
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Bulgaria
Employer
Company Payroll Contributions
13.72% - 13.72%
Social Security (the base cap is BGN 3,000 until 3/31/2022, increasing to BGN 3,400 from 4/1/2022 to 12/31/2022)
4.80% - 4.80%
Health Insurance
0.40% - 1.10%
Work Accidents and Occupational Diseases Fund
18.92% - 19.62%
Total Employment Cost
Employee
Worker Payroll Contribution
0%- 10.58%
Social Security (the base cap is BGN 3,000 until 3/31/2022, increasing to BGN 3,400 from 4/1/2022 to 12/31/2022)
0%- 3.20%
Health Insurance
0% - 13.78%
Total Employee Cost
Employee Income Tax in Bulgaria
10.00%
Flat Rate
Payroll Contributions in Bulgaria
Payroll Cycle
With payroll outsourcing, you will be able to meet the monthly cycle, as well as pay your employees on the last business day of each month.
13th Salary
There is no provision in the law about the 13th month salary.
Employee Benefit in Bulgaria
Visa and work permit in Bulgaria
Foreign citizens, including those from European Union countries, must apply for a residence permit to work in the country. In this case, it is the Law on Aliens in the Republic of Bulgaria that governs the issuance of such permits.
Therefore, through the contractor management services, you will be able to apply for some of the 3 residence permits. Thus, a foreigner can opt for a residence visa in Bulgaria for foreign employees and long-term or extended residence.
VAT in Bulgaria
In Bulgaria, the standard rate is 20%.
Working Hours in Bulgaria
General
Bulgarian employees must adhere to a standard working schedule of 8 hours per day and 40 hours per week.
Overtime
The Employer of Record in Bulgaria will allow you to manage overtime that exceeds the standard weekly hours. Moreover, employment contracts or collective agreements regulate these overtime. Also, there are limits to the maximum overtime of 2 hours per day on 2 consecutive days.
Likewise, they limit these hours to 6 per week, 30 per month, and 150 per year. In addition, for daytime overtime, the employer must pay 150% of the regular salary of the employee. Also, the employer must pay overtime at the weekend at 175% and 200% on holidays.
Working Week
Monday to Friday.
Employee Termination in Bulgaria
Termination Process
The dismissal process is standard and is based on the reasons established by the Bulgarian labor law. However, an employer can provide cause for dismissal without notice (misconduct). In addition, the employer must give notice of the recession in writing and send it to government authorities.
Notice Period
The notice period in the country is 30 days but it is common for it to be 90 days.
Severance Pay
Properly arrange severance pay with the employer of record in Bulgaria, which is mandatory where applicable. Additionally, the amount of compensation is different depending on the type of termination. In this case, depends if the termination by the employee, by mutual agreement, without cause, with cause, and according to the type of contract. Anyhow, the compensation generally consists of no less than 4 months of gross salary.
Also, it is common for the employer to make the payment within 7 days after termination. On the other hand, if the cause is the reduction of personnel, the severance payment is 1 month, unless the contract indicates otherwise.
Probation Period
The trial period for permanent employees can be between 3 and 6 months, after this time you will be able to hire and onboard workers in Bulgaria.
Employee Leaves in Bulgaria
Paid Time Offs
The vacation leave in Bulgaria consists of a minimum of 20 days a year, set in the work contract. In this case, the Employer of record in Bulgaria is also useful to manage this leave with employees with a minimum of 4 months of work.
Public Holidays
There are 15 national holidays throughout the year.
Vacation Holidays
There are 20 vacation holidays throughout the year.
Sick Days
International PEO services manage sick leave for your employees for up to 18 months. However, to receive the leave, the worker needs to present a medical certificate within 48 hours of the onset of the illness. Likewise, the initial 3 days of leave are paid by the employer at 70% of the regular salary. Then, the National Social Security Fund makes payments at 80% of the regular salary or 90% for illness or injury related to a work-related injury.
However, the employee must have completed a minimum of 6 months of service or payments to Social Security.
Paternity Leave
Also, the Employer of Record in Bulgaria can assist you with this leave consisting of 15 paid days. In addition, the employee will receive a payment of 30% of the regular salary from the birth of his child.
However, only those employees who have completed at least 1 year of service may receive this benefit. In the same way, when the child reaches 6 months, the remainder of the maternity leave can be shared by both parents with the consent of the mother.
Paternal Leave
The employer may authorize the employee to take leave to raise 1 child until the child is 2 years old. In addition, this license can be transferred to the father or the grandparents.
Other Leave
With the international PEO, you can manage other licenses including:
- Two days of paid vacation for an employee who gets married.
- Employees may also receive 2 days of leave for the death of 1 family member.
Maternity Leave in Bulgaria
With global employment outsourcing, you can know and manage the right of employees to maternity leave. In this case, it consists of 410 paid days that begin 45 days before the probable delivery date. Also, 135 days of this license are mandatory. In addition, the employee will receive a payment of 90% of her regular salary from the NHIF.
There are 410 leave throughout the year.