Bulgaria boasts a very knowledgeable workforce that thrives in industries like manufacturing, tourism, agriculture, and more. Plus, Bulgaria welcomes businesses from over 150 countries, making it relatively easy to bulk up your workforce with their residents and natives. That’s why so many international companies are looking for talent in this country.

Even so, long before beginning the recruiting process in the Bulgarian labor market, you’ll need a full understanding of employee benefits for both legal reasons and ease of recruiting. There are very strict statutory laws that all businesses with Bulgarian workers must fully comply with or risk damaging fines, penalties, and even imprisonment. In addition to that, Bulgarians are typically well aware of their rights as workers and will expect their boss to include the right benefits.

So, do yourself a favor and read this article to the end. We’ll cover the mandatory and supplementary benefits employers like you should include in a benefit plan for Bulgarians. We’ll also touch on pertinent employment laws to reduce your research burden.

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Bulgarian Employment Law

The mandatory benefits we’ll go over below are rooted in Bulgarian employment laws. After all, these legal requirements are the basis of compliance for any employer in the country.

The main employment laws in Bulgaria include:

It’s important to remember that these are not the only pieces of legislation that international workers need to be familiar with, though they are the most prominent. Start with these and branch out as you see fit. And don’t be afraid to reach out to a legal professional as needed. 

Moreover, laws in any country are subject to change at any moment. For this reason, we urge you to stay up to date on changing regulations in the country.

Mandatory Employee Benefits in Bulgaria 

When creating a benefit plan for your Bulgarian employees, it only makes sense to scope out the statutory benefits – the ones that you are required by law to include. We’ll look into the mandatory employee benefits in Bulgaria below:

Social Security Contributions

According to Bulgaria’s Social Insurance Code, every employer should register employees for social security and make regular contributions to fund social insurance accounts. The funds go towards the following:

  • Healthcare
  • Sickness cash benefits
  • Maternity and paternity benefits
  • Invalidity benefits
  • Old age pensions and benefits
  • Survivors’ benefits
  • Work-related sicknesses and injuries
  • Family benefits
  • Unemployment benefits
  • and more

Employers typically have to contribute between 14 and 15% of the employee’s salary on top of their normal wages. Employees don’t contribute as much – about 10.5% – and you’ll need to withhold it from their paychecks.

REMOTE PEOPLE FURTHER READING

You can find information about social security contributions and other employer obligations in the Social Insurance Code and this European Commission guide.

Annual Leave

Per the Bulgarian labor code, employers should give their workers at least 20 days off for annual leave. You can come up with an annual leave duration that’s longer than this one through a collective agreement or in the employment contract, but it cannot be shorter than 20 days. This leave entitlement should be paid at the worker’s normal wage.

Sick Leave

When an employee is sick or injured outside of work, needs to take care of someone else who’s ill, or meets the other sick leave requirements, there’s a lifeline available. In Bulgaria, sick leave is mandatory and should be allowed for 18 months max. Throughout the leave, your workers should receive a certain portion of their normal pay.

Here’s a table showing how compensation should work throughout the leave and who is responsible for paying the worker:

Day of SicknessCompensationWho Pays?
First three days70% of normal payEmployer
Days three and up80% of normal payGovernment

In order to qualify for leave, the employee should bring in proof of sickness from a qualified doctor. There is also a minimum service length requirement of 6 months before the government will pay for sick leave.

Maternity Leave

Per the Labor Code of Bulgaria, female employees who are expecting one or more babies should be able to take maternity leave for a total of 410 days. This is equivalent to 58.10 weeks. Leave should start within 45 days of the baby’s birth.

Paternity Leave

Soon-to-be fathers and current fathers in Bulgaria are entitled to paternity leave by government law. For years, paternity leave was capped at 15 days and was compensated through the government only if the employee had made a minimum of 12 months of social security payments. But as of 2022, that regulation has changed – it’s now two months and 15 days of leave.

The leave starts as soon as the baby is born, and for the first 15 days, the worker receives 90% of their social security income. The worker only needs to have contributed to their social security account for 6 months to qualify. As for the 2-month extension, it’s paid at the statutory minimum wage if and only if the employee has been contributing to social security for at least 12 months. Plus, this extended leave must be requested in writing at least 10 days before the leave is to start.

Parental Leave

On top of maternity and paternity leave, Bulgaria also offers parental leave. The child’s mom, dad, or grandparents can request additional leave through their employer. The leave is paid, it lasts for 14.6 months, and it’s transferable between parents. For employees to qualify for parental leave, they have to meet several conditions.

Working Hours and Overtime

The labor code is clear on working hours and overtime. As of the time of this writing, lawful working hours don’t exceed 8 hours per day or 40 hours per week. Whenever an employee needs to work more than the aforementioned time, this is considered to be overtime, and it should be paid as such.

Overtime in the country should follow the below structure:

Work Type Overtime Pay Rate
Overtime on Workdays 150% of wages
Work on Weekends 170% of wages
Work on Holidays 200% of wages

Public Holidays

Laws and regulations in Bulgaria state that employees should not work on public holidays. The following public holidays should be treated as non-working days and employees should still be paid for them:

  • January 1 – New Year’s Day
  • March 3 – Liberation Day
  • April 18 – Good Friday
  • April 19 – Holy Saturday
  • April 20 – Easter Sunday
  • April 21 – Easter Monday
  • May 1 – International Workers’ Day
  • May 6 – Saint George’s Day
  • May 24 – Saints Cyril and Methodius Day
  • September 6 – Unification Day
  • September 22 – Independence Day
  • December 24 – Christmas Eve
  • December 25 – Christmas Day
  • December 26 – Second Day of Christmas

Minimum Wage Compliance

If you hire employees from Bulgaria, be sure to pay them at least the minimum wage of BGN 1,077 per month for 2025. And be sure to check periodically for updates to the minimum wage; it can change at any time.

Severance Pay

Severance pay is non-negotiable in Bulgaria, and it depends heavily on the employee’s work situation, the circumstances surrounding the termination, and more. If a worker is let go for downsizing, liquidation, or redundancy, they get a month of salary. But they get more when voluntarily retiring – 2 months of salary. Long tenure results in an even bigger severance payment.

Supplementary Employee Benefits in Bulgaria

The mandatory benefits in Bulgaria are the minimum, and many other employers vying for the same candidates will be offering them. So, how do you stand out? By offering supplementary benefits – the perks you don’t necessarily have to include. Here are a few options to consider:

  • Extended lunch time or free/reduced meals.
  • Home office stipend for those who work from home.
  • Childcare assistance or onsite daycare for workers.
  • Travel benefits like company cars, public transit passes, etc.
  • Tuition reimbursement and career advancement opportunities.
  • Gym and yoga memberships for wellness.
  • Health care options that go beyond what social security provides.

As you sift through your supplementary benefit options, prioritize the perks you believe will have the biggest impact on your future candidates and new hires. It’s these benefits that will really move the needle for you throughout the recruitment process.

So, there you have it – everything you need to know about employee benefits in Bulgaria. We hope you found all the information you were looking for in this employee benefits guide, and we wish you the best in your efforts to augment your workforce with Bulgarian talent.