Population
6.8M
Currency
Bulgarian Lev (BGN)
Languages
Bulgarian
Capital
Sofia
Cost of Living
37.58 (US 69.92)
(US 69.92)
Time (UTC)
UTC + 2
Government
Parliamentary republic

Hire in Bulgaria without an entity and fully compliant with local labor laws

Bulgaria, located in Southeast Europe, is a centuries-old cultural crossroads. Today, it's a modern nation with a thriving economy and a unique blend of traditional and contemporary cuisine, architecture, and lifestyle.

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Bulgaria is approximately 105% of the area of Ohio, one of Europe's largest countries, and the 105th biggest in the world.

Get to know Bulgaria

Bulgaria has a diverse geography, ranging from the coastal Black Sea plains in the east to the high peaks of the Balkan Mountains in the west. The capital city, Sofia, is located in the western part of the country and is home to over one million people. Bulgarian culture is a blend of traditional and contemporary influences, shaped by its unique history and position at the crossroads of Europe and Asia.

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Bulgaria has a growing and diverse economy, with a workforce of over 2 million people. The country's economy is driven by various industries, including tourism, technology, agriculture, and manufacturing. In recent years, Bulgaria has undergone significant economic growth, with a focus on modernizing its infrastructure and attracting foreign investment. Bulgaria's well-educated and highly skilled workforce in science and technology is a primary reason the growing tech industry contributes significantly to the country's GDP and employment.

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The Bulgarian tech industry includes software development, IT, and digital services. The country is home to many technology companies, ranging from small start-ups to multinational corporations; it's widely recognized as an Eastern Europe software development and IT outsourcing hub.  

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The World Bank classifies Bulgaria as a upper-middle-income economy with the following trade agreements and alliances: 

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  • CETA - Canadian-European Trade Agreement
  • European Union
  • NATO - North Atlantic Treaty Organization
  • OSZE
  • Schengen Countries
  • UN - United Nations
  • UNESCO

“Must know” if you’re hiring in Bulgaria without an employer of record

Entity requirements
Mandatory hiring contracts & clauses
Different compliance risks for full-time vs. contractor employees
Mandatory probationary periods
Allowable working hours & overtime wage laws
Timecard and attendance records
Required employer payroll, labor insurance, and tax payments
Discrimination protection
Notices & termination regulations

Budgeting for Bulgarian employees

Employee Classification–Full-time vs Contractor

Full-time:

  • Minimum terms and conditions of employment 
  • Fixed salary
  • Fixed work hours
  • Benefits and paid leave

Contractor:

  • Provides independent and autonomous services
  • Workplaces can vary 
  • Flexible hours
  • No fixed salary
Employment Contracts

A standard employment contract in Bulgaria should include the following key terms:

  • Job title
  • Duties and responsibilities
  • Work schedule
  • Salary
  • Benefits
  • Probationary period
  • Termination of employment
  • Non-compete and non-solicitation clauses
  • Confidentiality and non-disclosure agreements
Probation Period

Up to six months

Standard Working Hours & Overtime
  • Eight hours per day
  • 40 hours per week
  • Overtime = paid 150% of regular salary rate
Payroll Frequency
  • Daily, weekly, or monthly
Wages & Bonuses
  • Minimum monthly wage = $752.931
  • 13th month pay not mandatory

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USD equivalent median salaries based on Role:

  • Data Scientist: $34,919
  • Electrical Engineer: $28,051
  • Hardware Engineer: $14,378
  • IT Manager: $34,510
  • Mobile Developer: $19,553
  • Product Manager: $25,232
  • Project Manager: $17,835
  • QA Engineer: $26,981
  • Software Engineer: $22,801
  • System Administrator: $19,004
  • UX Designer: $20,910
  • Web Developer: $31,462

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Payroll Taxes & Employer Contributions
  • 13.72% Social Security
  • 4.80% Health Insurance
  • 0.40% - 1.10% Accident at Work & Occupational Illness Fund
Benefits

Health Insurance 

  • Mandatory for all citizens and residents, and is provided by the National Health Insurance Fund (NHIF)
  • Funded through payroll contributions made by both employees and employers, as well as through government subsidies
  • Provides coverage for a range of medical services, including hospitalization, outpatient care, diagnostic tests, and prescription drugs
  • Eligibility is determined by residency status

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Paid leave

‍

Maternity 

  • 410 days

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Paternity 

  • 15 days

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Vacation/PTO days

  • 20 - 48 days

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Sick Days

  • First three days = 100% paid by employer
  • State Social Security pays for the rest of the sick days

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Additional Leave

  • Jury duty leave
  • Voting Leave
  • Bereavement Leave
  • Military Leave

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Additional Benefits

  • Business Travel Insurance
  • Supplementary Medical Insurance
  • Group Life Insurance
  • Supplementary Voluntary Pension Insurance
  • Employee perks such as food vouchers, gym cards, mobile phones, transportation allowances and company cars for managers

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Holidays

Bulgaria celebrates 11 national (public) holidays and multiple observances a year: 

  • New Year’s Day (January 1)
  • Bulgaria’s Liberation from the Ottoman Empire (March 3)
  • Labour and International Workers Solidarity Day (May 1)
  • Gergyovden and the Bulgarian Army’s Day (May 6)
  • Unification Day (September 6)
  • Independence Day (September 22)
  • Christmas  (December 24 - 26)

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Termination & Severance

Termination

  • Can be either by notice or by summary dismissal, depending on the specific circumstances of the case
  • Governed by the Labor Code, which provides for certain protections for employees, including the right to receive notice before termination and the right to receive severance pay in certain circumstances

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The Labor Code provides for the following circumstances in which an employee is entitled to receive severance pay:

  • Termination by the employer without just cause
  • Termination due to redundancy
  • Termination due to illness or injury

And a few fun facts about Bulgaria…

  • Bulgaria has a rich history, with evidence of human habitation in the region dating back to the Neolithic era.
  • Bulgaria is home to the oldest gold treasure in the world, which was discovered near the city of Varna and dates back to 4,500 BC.
  • The Bulgarian language is unique, no other language in the world uses the Cyrillic alphabet.
  • As confusing as it may be, Bulgarians shake their heads when they mean to say “yes” and nod when they want to say “no”.
  • Bulgaria's Rila Monastery houses a wooden cross with 140 microscopic scenes from the Bible. The biggest of the 1,500 figures featured is smaller than a grain of rice.

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