Employment Law Framework
Bulgaria’s labor relations are governed by the Labour Code, which provides strong protections for employees. As a foreign business owner, understanding these rules is critical before making your first hire. Non-compliance can lead to significant fines from the General Labour Inspectorate.
Employment Contracts
Every employment relationship in Bulgaria must be formalized with a written employment contract. The contract must be registered with the National Revenue Agency (NRA) at least one day before the employee starts work.
Mandatory contract elements include:
- Parties — employer and employee identification
- Job title and description of duties
- Place of work — specific location or remote work arrangement
- Working hours — standard is 8 hours per day, 40 hours per week
- Salary — gross amount, not less than the minimum wage
- Start date and contract type (fixed-term or indefinite)
- Annual paid leave — minimum 20 working days
- Notice period — at least 30 days for indefinite contracts
Types of Employment Contracts
Bulgarian law recognizes several contract types:
- Indefinite-term contract — the most common; no end date specified
- Fixed-term contract — limited to a maximum of 3 years; can only be used in specific circumstances
- Probationary contract — up to 6 months; allows easier termination during the trial period
- Part-time contract — reduced hours with proportional pay and benefits
Minimum Wage and Salary
The national minimum wage in Bulgaria is updated annually. As of 2025, it stands at BGN 1,077 per month for full-time employment. Minimum insurable income thresholds vary by industry and position and may exceed the national minimum wage.
When setting salaries, consider:
- Minimum insurable income for the specific job category
- Market rates — Sofia salaries are typically 20–40% higher than regional averages
- Total employer cost — gross salary plus approximately 18–19% employer social contributions
Social Security Contributions
Both employer and employee contribute to Bulgaria’s social security system. The total rate is approximately 31–32% of gross salary:
| Contribution | Employer Share | Employee Share |
|---|---|---|
| Pension (State) | 8.22% | 5.58% |
| Health Insurance | 4.8% | 3.2% |
| Unemployment | 0.6% | 0.4% |
| Sickness/Maternity | 2.1% | 1.4% |
| Work Accident Fund | 0.4–1.1% | — |
Contributions are capped at a maximum insurable income of BGN 3,750 per month.
Hiring Process Step by Step
- Draft the employment contract in Bulgarian (bilingual versions are acceptable)
- Register the contract with the NRA electronically before the start date
- Provide the employee with a signed copy and the NRA registration confirmation
- Register the employee for social security and health insurance
- Conduct initial safety briefing as required by occupational health regulations
- Set up payroll — salaries must be paid at least once per month
Termination Rules
Terminating an employee in Bulgaria is more regulated than in many other countries:
- By mutual agreement — both parties sign a termination document
- With notice — employer must provide 30 days’ notice (or more if specified in the contract) and have a valid legal ground
- Without notice — only in limited cases such as disciplinary dismissal for serious violations
- Severance pay — required in certain termination scenarios; typically one month’s salary per year of service for redundancy
Hiring Foreign Workers
If you want to hire non-EU citizens, additional requirements apply:
- The employee needs a work permit issued by the Employment Agency
- A single permit combining residence and work authorization is available
- The salary offered must meet or exceed the average Bulgarian salary for certain permit types
- EU/EEA citizens can work freely without a permit
Get Help with Employment Compliance
Bulgarian labor law has many nuances that can catch foreign employers off guard. Attorney Biser Dimov in Troyan advises foreign business owners on employment contracts, payroll setup, and labor law compliance. Contact us before making your first hire to ensure everything is done correctly.
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