Bulgaria PEO & Employer of Record

WeHG provides an International PEO and universal Employer of Record service in Bulgaria to companies willing to enter the Bulgarian market or hire local/expat employees in this area.

Traditional approach requires establishing a subsidiary in Bulgaria.  Contemporaneously, our solution allows you to start the operations in Bulgaria within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Bulgaria fast facts

Population, million: 7
Land area: 110,993.6 km²
Capital: Sofia
Local currency: Lev (BGN)

GDP per capita:$ 67,917
GDP in currency:$ 9,826

Bulgaria is a country in South-Eastern Europe, in the eastern part of the Balkan Peninsula, occupying 22% of its area. In the east, it is washed by the Black Sea. It shares borders with Greece and Turkey in the south, Serbia and North Macedonia in the west, and Romania in the north. A parliamentary republic with a presidential rule. The country is divided into 28 regions, which are subdivided into 265 communities.

According to the constitution, Bulgaria is a secular state. A significant part of the population (about 78%) are orthodox christians.

Hiring, Negotiating and Doing Business in Bulgaria

Necessity of written employment contract

According to the Bulgarian labour law, the employment relationship between an employer and an employee begins with the conclusion of a written employment contract.

Different forms of engagement: employment, contracting, work with private entrepreneur

According to Bulgarian law, foreign national employees should be employed with a work permit; from the employer’s side, there has to be proof that the local person can’t be hired for the position. A work permit has to be provided within a month. 

Despite the candidate’s nationality, all working relations and contracting are regulated by the Bulgarian Labor Code. Employment contract includes details of work such as termination, description of the position, etc. Employees have the right to sue the employers in case of unlawful dismissal and request remedies such as back wages, modification of employment records, etc. 

Bulgaria Employment Contract

Types of employment agreements

Bulgaria working hours

The total amount of working hours for a 5-day work week should not exceed 35 hours. Talking about night shifts, the amount of working hours should not exceed 7 hours; the shift should start at 8 PM and finish at 6 AM ( for employees from 16 years night shift starts at 8 PM and finishes at 6 AM). 

Overtime

Overtime work can be agreed upon by both parties before performing overtime hours; conditions of hours and payment should be concluded in writing. This instruction can be provided after performing the overtime hours. In case when the employer is against overtime practice, he/she is obliged to prevent it by a written instruction. According to the Labor Code, overtime hours cannot be compensated with breaks and are paid with higher supplements, for example:

Vacation leave in Bulgaria

There are 20 days off per year for every employee in Bulgaria which can be used only throughout one working year. In the case of unused annual leave, employees are supposed to be compensated for all unused vacations which workers can have after the first 2 years of employment.

Bulgaria Maternity Leave

Maternity leave lasts 410 days for every pregnancy, 45 days of which have to be used by female workers before giving birth. If a female employee mistakenly gives birth before the expiry of 45 days, the rest of the leave can be used after the birth of a child.

Bulgarian Severance Laws

The duration of a probationary period should not exceed 6 months. Depending on the circumstances, employment can be terminated with or without notice.  

Termination for indefinite contractors should be performed with a provided notice not later than one month before. In the case of fixed contracts, the period of notice should not exceed 3 months. When the labor contract expires, no notice is required. 

The Labor Law in Bulgaria doesn’t contain any requirements for a severance payment. Still, the employees can be compensated in the case of an individual or collective dismissal caused by economic factors:

• termination of employment caused by the sickness of a worker, who has been employed not less than 5 years (2 months of severance payment)
• termination of employment caused by pension acquisition (from 2 to 6 months of severance pay if the worker has been employed for more than 10 years). 

Bulgaria Tax

Health Insurance Benefits in Bulgaria

Medical leave is paid and permitted by the medical authorities. Following conditions allow a worker take a paid medical leave:

• temporary disability resulting from a  general disease or an occupational disease
• occupational injury
• for sanatorium treatment or for urgent medical examinations or tests, quarantine
• suspension from work prescribed by the medical authorities
• for taking care of an ill or quarantined member of the family
• for urgent need to accompany an ill member of the family to a medical check-up
• test or treatment
• for taking care of a healthy child dismissed from a child-care facility because of quarantine imposed on that facility or on the child

Additional Benefits in Bulgaria

Aside from the Labor Code’s healthcare insurance, companies in Bulgaria are capable of providing employees with private medical services. Additionally, there are food meals (vouchers) available as benefits and they are tax-exempt up to BGN 60 monthly. 

General market practice benefits/additional allowances

The main benefit of doing business in Bulgaria is taxation – it’s the same for locals and foreigners equally (see Bulgaria Tax rate upper). To avoid double taxation for foreigners, Bulgarian government signed agreements with more than 60 countries. 

At the same time, you should take into account some aspects of the Bulgarian banking sector. Several problems follow those who attempt to visit local banks: lack of information in foreign languages, lack of competition between banks and high fees.

Bulgaria Holidays

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.