Quick Answer: Hiring Employees in Bulgaria
Hiring employees in Bulgaria requires a written employment contract, registration with the National Revenue Agency (NRA), and compliance with the Labor Code, social security rules, and payroll regulations. Employers must observe minimum wage requirements, working time limits, mandatory leave entitlements, and social security contributions totaling approximately 33.4% of gross salary. Proper documentation and payroll compliance are essential to avoid penalties.
Introduction
Hiring and managing employees in Bulgaria can be challenging, especially for businesses unfamiliar with the country’s labor laws, social security system, and employment contracts. Over the past 20 years, Aidos Ltd. has helped businesses navigate these complexities, ensuring compliance while fostering productive work environments. This guide covers key aspects of labor law, social security contributions, and employment contracts in Bulgaria to help you successfully manage your workforce.
Hiring Without a Bulgarian Entity
Foreign companies that wish to employ a person working remotely from Bulgaria do not need to establish a Bulgarian company or branch. A dedicated registration path exists that allows the employer to run Bulgarian payroll and comply with social security obligations directly. For a full explanation of how this works, see our guide to foreign employer registration in Bulgaria.
1. Overview of Labor Laws in Bulgaria
Bulgarian labor laws are designed to protect employee rights while allowing employers to manage their workforce effectively. The primary framework for labor relations is the Labor Code of Bulgaria, which covers:
- Work hours: Standard working hours are 8 hours per day or 40 hours per week. Under certain conditions, employees can work up to 12 hours a day. Night shifts are limited to 7 hours per day or 35 hours per week.
- Minimum wage: As of 2026, the national minimum wage is EUR 620.20 (BGN 1,213). Employers must comply with this to avoid legal issues.
- Employee rights: Employees are entitled to protection against discrimination, equal pay, maternity and paternity leave, sick leave, and paid annual leave.
2. Employment Contracts in Bulgaria
All employees must have a written employment contract that includes:
- Place of work
- Job title
- Duration of the contract (fixed or indefinite)
- Start date
- Basic salary and any additional compensation
- Paid annual leave entitlements
- Notice period for termination
- Work schedule (daily/weekly hours)
Types of Employment Contracts:
- Open-ended contracts – The standard form of employment without a fixed end date.
- Fixed-term contracts – Typically used for temporary roles, with a maximum duration of three years.
- Trial period contracts – Used to assess an employee’s suitability for a role, lasting up to six months.
Electronic Labor Book (ELB)
The Bulgarian Labor Code has introduced the Electronic Labor Book (ELB), which will replace paper employment records. Key dates:
- June 1, 2025 – ELB system comes into force.
- June 1, 2026 – Employers must update all records and return paper employment books to employees.
Main Leave Entitlements:
- Paid annual leave: Minimum 20 working days (can be extended by contract or collective agreements).
- Maternity leave: 58.6 weeks (divided into pre-birth and post-birth leave).
A full guide on Maternity and Paternity Leave here: Maternity Leave in Bulgaria: A Complete Guide for Employees and Employers - Paternity leave: 15 days (additional unpaid leave possible for child-rearing).
- Educational leave: 25 days per year for study purposes.
3. Social Security Contributions and Taxes
Bulgaria has a mandatory social security system that covers pensions, healthcare, and unemployment benefits. Employers and employees contribute based on gross salary:
- Total social security contribution: 33.4%
- Employer: ~19.62%
- Employee: ~13.78%
- Personal income tax: Flat 10% on salaries.
Employers must ensure proper deductions and payments to the National Revenue Agency (NRA) to stay compliant.
If an employee works partly or entirely outside Bulgaria — for example in a remote, posted, or multi-country arrangement — EU social security coordination rules may apply. In such cases, employers may need to assess whether an A1 certificate is required before cross-border work begins. See our detailed guide: A1 Certificate Explained: Social Security Rules for Cross-Border Work in Europe.
Read here a more about health insurance: Health insurance in Bulgaria: What You Need to Know in.
4. Key Considerations for Managing Employees
To manage employees effectively, businesses should focus on:
1. Legal Compliance
Maintain detailed records of working hours, wages, and social security contributions.
Ensure a safe work environment that adheres to health and safety regulations.
Follow proper termination procedures to avoid disputes.
Remote work has become common in recent years. Read more here:
Remote Work in Bulgaria: Legal Framework and Best Practices.
From 2026 onward, employers must also prepare for the implementation of the EU Pay Transparency Directive (Directive (EU) 2023/970). Once transposed into Bulgarian law, it will introduce:
- Mandatory pre-hire salary range disclosure
- A ban on salary history questions
- Employee rights to comparative pay information
- Gender pay gap reporting obligations for employers with 100+ employees
For a detailed explanation of the legal status and reporting timelines, see:
EU Pay Transparency Directive in Bulgaria (2026 Guide)
2. Employee Benefits and Retention
Offering additional benefits can improve employee satisfaction:
- Private health insurance
- Food vouchers
- Gym memberships or sports cards
- Extra paid leave beyond the legal minimum
3. Dispute Resolution
- Disagreements should be handled per the Labor Code to prevent legal complications.
- Mediation or labor law experts can help resolve disputes before they escalate.
Conclusion
Hiring employees in Bulgaria requires careful compliance with the Labour Code, social security rules, and contract formalities. Clear documentation and properly structured employment agreements are essential from the outset.
Employment should be approached as a full lifecycle — not only recruitment, but also payroll compliance, ongoing administration, and eventual termination. Understanding termination rules in advance helps employers structure contracts and internal processes correctly from day one.
For a detailed explanation of dismissal routes, notice periods, probation rules, and protected employees, see our guide on
Employment Termination in Bulgaria: Employer Guide.
For a complete overview of salary calculations, reporting obligations, and ongoing payroll administration, refer to
Payroll in Bulgaria: An Essential Guide for Business Owners.
If your company requires structured support across hiring, payroll, and employment compliance, Aidos can assist with a coordinated and compliant approach.
Frequently Asked Questions (FAQ)
1. What are the legal requirements for hiring an employee in Bulgaria?
Employers must sign a written employment contract, register it with the National Revenue Agency (NRA), and ensure compliance with labor laws, including social security contributions and minimum wage requirements.
2. What is the minimum wage in Bulgaria?
As of 2026, the minimum wage in Bulgaria is EUR 620.20 (BGN 1,213). This may be subject to change based on government regulations.
3. Can I hire employees on a freelance basis instead of an employment contract?
Yes, businesses can engage freelancers under civil contracts, but these arrangements differ from employment contracts and do not provide the same legal protections, benefits, or social security contributions. Read more about Civil contracts here: Freelancer in Bulgaria: Civil Contracts vs. Self-Employment
4. How long is the probation period for new employees?
The probation period can last up to six months, during which either party can terminate the contract with shorter notice.
5. What are the standard working hours in Bulgaria?
A full-time workweek is 40 hours (8 hours per day, 5 days per week). Certain exceptions allow up to 12-hour shifts under specific conditions.
6. How much do employers pay in social security contributions?
Employers contribute approximately 19.62% of an employee’s gross salary, while employees contribute around 13.78%, making a total of 33.4% in social security contributions.
7. What are the notice periods for termination?
- For indefinite contracts: 30 days, unless a longer period is agreed upon.
- For fixed-term contracts: 3 months (but no more than the remaining duration of the contract).
- During probation: 3 days (unless specified otherwise).
8. What types of leave are employees entitled to?
- Annual leave: At least 20 working days per year.
- Maternity leave: 58.6 weeks (fully paid by social security).
- Paternity leave: 15 days (paid).
- Sick leave: Partially paid by the employer and social security.
9. Can foreign companies hire employees in Bulgaria?
Yes, but they may need to establish a local entity or work with a payroll service provider to manage compliance with Bulgarian labor laws and tax obligations.
10. What happens to employment records with the introduction of the Electronic Labor Book (ELB)?
Starting June 1, 2025, employers must transition to the ELB system. By June 1, 2026, all employment records must be updated, and paper employment books must be returned to employees.
📌 Disclaimer
This article is provided for general informational purposes only and does not constitute legal, tax, or payroll advice. Labor and social security regulations in Bulgaria may change, and individual circumstances vary. Always consult a qualified professional or the relevant authorities before making employment-related decisions.
Last reviewed and updated: February 2026
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