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Bulgaria PEO & Employer of Record

Build and grow your business in Bulgaria, with New Horizon outsourcing

Expand your organization into Bulgaria, with or without a Bulgarian entity

Bulgaria is an Eastern European gem with rich cultural and historic influences. The economy has also dramatically expanded through the 21st Century, and many industries are booming, from heavy industry to science and tech. As such, the country is an excellent place to expand any business.

At New Horizons, we work to help businesses from any and all industries expand into Bulgaria. Our professional employer organization (PEO), employer of record, and payroll services can offer you everything you need to start your Bulgarian expansion rapidly, efficiently, and compliantly.

As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Bulgaria workforce, along with any ongoing HR and compliance work. Explore our Bulgaria expansion services below, or get in touch with our team to let us know about your expansion goals.

How can our Bulgaria PEO simplifies your expansion

New Horizons enables your business to expand its operations into Bulgaria, without needing a legal subsidiary.

Rapid Market Entry

New Horizons will enable you to source, hire, and onboard professionals across Bulgaria in as little as 48 hours.

Cost-Effective Expansion

Our PEO solution can help you benefit from cost savings of up to 85%, without the need to establish a Bulgarian entity.

Payroll Outsourcing

Simplified Bulgaria salary & payroll processing, including social security payments, tax, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Bulgarian labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Bulgaria-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Bulgaria’s labor laws and best practices.

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Hiring in Bulgaria: Employment law overview

Employment contracts in Bulgaria

We strongly recommend that you always provide your employees in Bulgaria with written contracts of employment. These contracts should be written in Bulgarian, use the Bulgarian lev currency, and include details such as compensation, parental leave allowance, vacation allowance, and any other relevant information.

Working hours in Bulgaria

The limit of a normal working week in Bulgaria is eight hours per day, five days per week. Beyond this, employers must pay overtime rates. 150% of normal wages should be paid on weekdays, 175% on holidays, and 200% on public holidays.

Public holidays in Bulgaria

Date
Description
1 Jan
New Year’s Day
1 Feb
Day of Remembrance and Respect to Victims of the Communist Regime
1 Mar
Baba Marta
3 Mar
Liberation Day
20 Mar
March Equinox
29 Mar
Daylight Saving Time starts
17 Apr
Good Friday
18 Apr
Holy Saturday
19 Apr
Easter Sunday
20 Apr
Easter Monday
1 May
Labor Day
6 May
St. George’s Day
24 May
Culture and Literacy Day
25 May
Culture and Literacy Day observed
21 Jun
June Solstice
1 Jul
July Morning
6 Sep
Unification Day
7 Sep
Unification Day observed
22 Sep
September Equinox, Independence Day
25 Oct
Daylight Saving Time ends
1 Nov
Revival Day
21 Dec
December Solstice
24 Dec
Christmas Eve
25 Dec
Christmas Day
26 Dec
Second day of Christmas
28 Dec
Christmas holiday

Vacation leave in Bulgaria

Workers in Bulgaria are entitled to at least 20 days of vacation leave per year. 

Sick leave in Bulgaria

Employees in Bulgaria are entitled to paid sick leave. The first day is covered by the employer, and any further absence is paid by the state. The compensation for this second period is generally 80% of normal pay for normal sickness, or 90% for workplace-related sickness or injury.

Parental leave in Bulgaria

Female employees in Bulgaria can take 410 days of paid maternal leave( covered by the state). 45 of these days must be taken prior to the birth. Compensation is equivalent to 90% of the employee’s normal salary.

Male employees can take 15 days of paid leave following the birth of their child, and can use the mother’s unused leave (if there is any) after the child is at least six months old.

There are different rules for parents who have more than one child.

Terminations and severance in Bulgaria

Employees in Bulgaria are generally entitled to a minimum of 30 days of notice for terminations. If an employee is terminated due to sickness and has been with their employer for more than five years, they are entitled to severance of at least two months’ pay.

Taxation in Bulgaria

In Bulgaria employers and employees must pay social security contributions. Employers cover 60% and 40% of the contributions, which total of 17.3% of salary, plus pension insurance contributions of 5% of salary, and health insurance contributions of 8% of salary.

Employers must also contribute between 0.4% and 1.1% of salaries to workplace accident insurance.

Health coverage in Bulgaria

The National Health Insurance fund covers healthcare in Bulgaria, and all employees (and employers) must contribute to this. For this reason, private health insurance is not generally expected.

Bulgaria compensations & benefits

Compensation laws in Bulgaria

The minimum wage in Bulgaria is €311.9 per month (in 2020).

Benefit management in Bulgaria

Building a benefits system for your Bulgarian workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.

New Horizons can simplify your Bulgaria benefits management. Our Bulgaria experts can handle everything for you, helping you focus on a successful expansion operation.

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Learn more about out Bulgaria expansion solutions