EOR Service in Bulgaria

Hire, Onboard and Pay Employees in Bulgaria Quickly and Efficiently

Hiring in Bulgaria at a glance

CURRENCY
Bulgarian Lev (BGN)
working hours
40 hours per week
public/bank holidays
14 days
capital
Sofia
language
Bulgarian
date format
DD/MM/YYYY
remote workers
1.2M
tax year
1 January - 31 December
minimum hourly salary
No minimum wage
CURRENCY
Bulgarian Lev (BGN)
working hours
40 hours per week
public/bank holidays
14 days
capital
Sofia
language
Bulgarian
date format
DD/MM/YYYY
tax year
1 January - 31 December
payroll frequency
Monthly
GDP
$89.04 billion USD (2022)

Employer of Record in Bulgaria

For employers venturing into Bulgaria, it's essential to understand the prerequisites for licenses and work permits, create legally compliant employment agreements, and ensure adherence to payroll and tax regulations. Partnering with an Employer of Record (EOR) is advantageous when you expand into Bulgaria. An EOR in Argentina helps you adhere to the legal and administrative aspects of employment, allowing your company to hire and grow within the country while adhering to local regulations. This includes handling payroll, and taxes, and ensuring compliance with Bulgaria's labor laws. Although your company will still oversee your employees' daily tasks, the EOR is the official employer, significantly reducing your administrative burden.

Why use Bulgaria EOR?

If you're contemplating the role of an Employer of Record in Bulgaria and its relevance to your business, here's what you need to know. 

Businesses partner with EORs for two reasons:


1) To hire and expand into a country without setting up an entity

2) To hire local talent in adherence with local labor laws

Setting up an entity in Bulgaria can cost anywhere between $500 to $2000, depending on the entity you’d like to set up. On top of this, hiring and working with legal consultants and notarians can drive costs further. By working with an EOR that already has an entity in Bulgaria, foreign businesses can start hiring and supersede these costs. 

Secondly, creating employment contracts compliant with Bulgaria’s labor can be daunting for foreign employers. For example, overtime laws are highly regulated in Bulgaria. Another example is the law around minimum wages, which is adjusted periodically. 

For employers wanting to set up an entity in Bulgaria, the expertise of a Bulgarian EOR can help ensure legal compliance with hiring. 

EOR Costs in Bulgaria

EORs usually have two pricing models: fixed and variable. In the fixed model, a transparent fee is charged per employee each month.

Employers hiring with Gloroots’ Bulgaria EOR pay a fixed fee - no hidden fees whatsoever. The advantage of working with an EOR for fixed fee helps you plan hiring budgets easily. 

In contrast, EORs charging a variable fee - a percentage of the employee’s salary - make it difficult to plan salary budgets. For example, when an employee’s salary increases, the cost of such EOR services also increases. With Gloroots, you face no such hassles.

Key Metrics For Foreign Employers 

In 2021, Bulgaria made its mark on the global stage, securing the 35th position in the Global Innovation Index published by the World Intellectual Property Organization (WIPO). This acknowledgment underscores Bulgaria's commitment to innovation and highlights its growing importance in the global business landscape.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Bulgaria.

Factors Global Ranking Interpretation
Rule of law 62 Indicates effectiveness of law enforcement
Labour-employer cooperation 64 Indicates positive labor-employee relationships
Reading Maths, and Science 49 Indicates average scores in OECD's survey of 15-year old students
University Ranking 50 Indicates average QS rankings
Labour productivity per employee 60 Indicates total output by the total labour input used to produce that output
Ease of finding skilled employees 105 Indicates findability of skilled talent
Workforce with tertiary education 40 Indicates % of workforce with PG degrees
Digital Skills 69 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Bulgaria.

Why work in Bulgaria?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Bulgaria

Growing your team in Bulgaria requires making the right hiring decisions. We understand that expanding in Bulgaria comes with its own set of challenges, including compliance, payroll, tax, and benefits management. Gloroots’ Bulgaria Employer of Record (EoR) service can alleviate these complexities and ensure compliance and you can focus on screening the right talent and growing your business. Partner with us to simplify the process and succeed in the dynamic Bulgaria market.

Risks of misclassification

Incorrect Worker Classification pertains to the incorrect labelling of workers, such as designating them as independent contractors or exempting from specific regulations when they should legally be considered employees with rights. Engaging a PEO/EOR effectively mitigates these risks. EORs guarantees adherence to labor laws, precise worker classification, streamlined payroll management, and employee benefit provisions, enabling employers to focus on their core business activities.

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Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

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Employing in Bulgaria

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer Payroll Contribution 

Payroll Tax Rate Description
Social Security 13.72% On a monthly salary of up to 3,400 BGN.
Health Insurance 4.80%
Accident at Work & Occupational Illness Fund 0.40% – 1.10%
Total Employment Cost 18.92% – 19.62%

Employee Payroll Contribution 

Payroll Tax Rate Description
Social Security 10.58% On a monthly salary of up to 3,400 BGN.
Health Insurance 3.20%
Total Employee Cost 13.78%

Employee Income tax

A flat tax rate of 10.00% for employee income tax.

Separation

Termination 

Terminating employment in Bulgaria follows a standard process outlined in Bulgarian Labor Law. However, notice may not be required if an employer can demonstrate justifiable cause for immediate dismissal (such as misconduct).

Termination notices must be written and submitted to the relevant government authorities.

Severance Pay

In Bulgaria, severance pay is obligatory when it is applicable. The exact amount varies depending on the circumstances of termination, such as termination by the employee, mutual agreement, termination without cause, or with cause in indefinite and fixed-term agreements. 

Typically, severance pay is calculated at a minimum of four months' gross salary and should be disbursed within a maximum of seven days after termination.

In cases of company downsizing, redundancy payments are generally equivalent to one month's salary as severance unless the employment contract specifies a different arrangement.

Notice Period

The legal minimum notice period in Bulgaria is 30 days, but it is customary to provide 90 days' notice.

Probation period

For regular employees, the probation period usually lasts three months, with a maximum extension of up to 6 months.

Start Hiring in Bulgaria today

When expanding your global workforce, maintaining compliance can be a complex challenge. Employers need to ensure that all aspects of hiring and onboarding align with employment laws, payroll procedures, diversity, equity, and inclusion (DE&I) requirements, as well as data protection regulations like GDPR. If establishing local entities and commencing hiring is already a daunting task, staying in sync with a constantly evolving compliance landscape can be even more demanding.

At Gloroots, we simplify this process by offering a unified platform to manage all these responsibilities. Our in-house experts provide comprehensive protection against the complexities of cross-border employment and payroll compliance. We assist in creating employment contracts, ensuring timely payments, and delivering compliant benefits, allowing you to focus solely on talent acquisition.

Our commitment is to deliver a stress-free global employment experience for both you and your employees.

Get in touch with our experts today to kickstart your global hiring campaign.

Are you Ready to
Experience Seamless Hiring in Bulgaria?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Bulgaria.

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