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.
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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New Horizons will help you expand your business into Bulgaria more efficiently
New Horizons’ Bulgaria PEO, employer of record, and payroll services provide businesses with everything they need to commence trading in Bulgaria as rapidly as possible. Our expansion experts will help you set up your operation and start trading in Bulgaria in as little as 48 hours, and could save as much as 82% in expansion costs, whether or not you have registered an entity in the country.
We will take care of your expenses, payroll, and legal compliance in Bulgaria, as well as all HR work. And as the only global PEO with a dedicated recruitment team in-house, we can also source and hire your local employees, using our Bulgarian subsidiary to act as employer of record so you don’t need to have a Bulgarian entity.
Talk to our Bulgaria payroll experts today to learn how our services can assist your expansion into Bulgaria.
