Bulgaria Employment Guide

Understanding Bulgaria's Minimum Wage Requirements

Bulgaria maintains a national minimum wage of 1,077 BGN per month, establishing the baseline compensation for all employees across the country.

Personal Income Tax Structure

Bulgaria operates a flat-rate income tax system of 10%, providing straightforward tax calculations for both employees and employers.

Beyond income tax, employees contribute 13.78% of their gross salary toward social security coverage, which includes healthcare, pension, and unemployment benefits.

Comprehensive Employer Cost Analysis

Employers should anticipate additional costs averaging approximately 19% of an employee's gross salary. These mandatory contributions include:

• Health Insurance - 4.80%
• Occupational Accident and Disease Fund - 0.50%
• General Sickness and Maternity Fund - 2.10%
• Unemployment Insurance - 0.60%
• Pension Fund (National Social Security Institute) - 8.22%
• Supplementary Mandatory Pension Insurance - 2.80%
• Medical Examination and Safety Assessment - 5 BGN per employee

Note: Social security contributions are calculated up to a maximum salary threshold of 3,750 BGN.

Initial Employment Setup Costs

• Employment Agreement Courier Fees - 20 BGN
• Mandatory Paper Employment Agreement Processing - Approximately 80 USD equivalent

Recurring Annual Expenses

• Workplace Risk Assessment - 35 BGN
• Labor Safety Insurance - 25 BGN

For companies expanding into Bulgaria, SailGlobal offers comprehensive employment solutions that manage these regulatory requirements efficiently.

Working Hours and Overtime Regulations

The standard workweek consists of 40 hours, typically distributed across five days (Monday through Friday) with 8-hour daily shifts. Overtime compensation follows specific legal requirements that employers must carefully observe.

International companies should note that Bulgaria's labor framework provides stability and predictability, though proper compliance requires understanding these fundamental cost structures.