Employer of Record in Bulgaria

Brain Source International streamlines your hiring process in Bulgaria, enabling you to recruit employees without setting up a local entity. Our Employer of Record (EOR) solution takes care of onboarding, payroll, immigration, and benefits, ensuring a fast and fully compliant expansion of your business.

What is an Employer of Record (EOR) in Bulgaria?

An Employer of Record (EOR) in Bulgaria is a strategic partner that acts as the legal employer for your employees residing in Bulgaria. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Bulgaria without the need to establish a local entity or navigate complex labor laws.

Employer of Record (EOR) in Romania: Key Aspects of the Polish Labour Code

General Information

• Currency: Bulgarian Lev (BGN)
• Payroll Frequency: Monthly
• Capital: Sofia
• Fiscal Year: 1 January – 31 December

Minimum Wage

General: The minimum wage is 933 BGN per month.

Payroll

Payroll Cycle: In Bulgaria, the payroll cycle is generally monthly, with payments typically made on the last working day of the month. This means that employees receive their salaries at the end of each month, which aligns with common practices in many countries.

13th Salary

In Bulgaria, there are no legal requirements for a 13th salary. This means that employers are not obligated by law to provide an additional salary payment, commonly known as a 13th salary, at the end of the year or during any other period. However, if a 13th salary is provided, it would typically be governed by the terms of the employment contract or collective agreements rather than by statutory law.

Taxation in Bulgaria

Would you like to know the approximate cost of employment in Bulgaria?

Working Hours

General: In Bulgaria, the standard working hours are 8 hours per day and 40 hours per week. These hours typically apply to a full-time work schedule, with the workweek usually spanning from Monday to Friday.

Overtime: Work performed beyond the standard 40-hour workweek in Bulgaria is considered overtime and is regulated by employment contracts or collective agreements. Generally, the maximum limits for overtime are:

• Daily: Up to 3 hours per day (across two consecutive days).
• Weekly: Up to 6 hours.
• Monthly: Up to 30 hours.
• Yearly: Up to 150 hours.

Overtime pay rates are as follows:

• Weekdays: 150% of the standard salary rate.
• Weekends: 175% of the standard salary rate.
• Public Holidays: 200% of the standard salary rate.

It is important to note that overtime pay cannot be included in the gross annual salary, regardless of the employee’s level or seniority.

Leave

Annual Leave (Vacation):

In Bulgaria, paid leave is typically set by the employment contract and is a minimum of 20 working days per year. Employees are generally entitled to this leave after completing four months of service with their employer.

Public Holidays

In Bulgaria, if a public holiday falls on a weekend, employees are entitled to time off in lieu on the first or the first two business days following that holiday. This ensures that employees receive their full entitlement to public holidays, even if they fall on a non-working day.

Sick Days

In Bulgaria:

• First Two Days of Sickness: Paid by the employer at 70% of the regular salary.
• From the Third Day of Sickness: The National Social Security Fund covers the payment at 80% of the regular salary rate. For work-related sick leave or injuries, the compensation is 90%, provided the employee has completed at least six months of service or Social Security contributions.

Employees are entitled to claim up to 18 months of paid sick leave.

A medical certificate must be provided within 48 hours of the first day of sickness.

Maternity Leave

Female employees are entitled to 410 days of paid maternity leave. Typically, 45 days must be taken before the due date, with the remaining days used after the birth. After the sixth month of leave, the remaining leave days can be transferred to the father if the mother chooses.

Payment During Maternity Leave: For workers with at least 12 months of insurance contributions, the National Social Insurance Institution pays maternity leave (temporary incapacity for work) at 90% of the average daily gross wage.

Sick Leave Certificates:

• First Certificate: Issued 45 days before the due date by the doctor who monitors pregnant women.
• Second Certificate: Issued 42 days after birth in the hospital by the doctor who delivered the baby.
• Third Certificate: Issued for the leave period up to the 135th day by the child’s or mother’s GP.
• Subsequent Leave: For the remainder of the leave entitlement (up to a total of 410 days), the worker must request this leave from the employer. After each sickness certificate or leave request, the employer must submit it to the National Social Insurance Institute.

Paternity Leave

Fathers are entitled to 15 calendar days of paternity leave, which must be taken from the day the baby is discharged from the maternity hospital. This leave is fixed, meaning it continues even if it falls on a non-working day, vacation, or public holiday—no additional day off in lieu is provided.

Payment Rate: Paternity leave is paid at 90% of the average daily gross remuneration or average daily insurance income from the 24 calendar months preceding the month the leave begins.

Eligibility: Fathers must have completed at least 1 year of employment to be eligible for paternity leave. To claim this leave, the father must submit a declaration form to the employer along with a copy of the hospital discharge certificate.

Transfer of Maternity Leave: Once the child reaches six months of age, the mother can choose to transfer any unused maternity leave entitlement to the father.

Additional Leave: Fathers can take up to 2 months of leave, paid by the National Social Security Institute, to raise a child under the age of 8. This is available provided they have not already taken leave to raise a child younger than two and have not used any transferred maternity leave from the mother. The employer must be notified at least 10 days in advance to use this additional leave.

Parental Leave

Once a child reaches 2 years old, each parent is eligible for up to 6 months of unpaid parental leave until the child turns 8 years old, provided the child is not in a state-maintained institution.

Notification: Parents must notify their employer at least 10 working days in advance before taking this leave.

Transfer of Leave: Each parent can take up to 5 months of the other parent’s leave with their consent.

Leave Duration: The leave can be taken all at once or in installments, with each leave period being no less than 5 working days.

Other Leave

Marriage Leave: Employees are entitled to two days of paid leave for their own marriage.

Bereavement Leave: Employees are entitled to two days of leave to attend the funeral of a family member.

Brain Source International offers Employer of Record (EOR) services in Bulgaria, providing a range of benefits and solutions for companies looking to hire employees in the country. Here’s an overview of what an Employer of Record service in Bulgaria with Brain Source International typically involves:

Key Services and Benefits

1. Legal Compliance:
   • Employment Contracts: Brain Source International ensures that employment contracts comply with Bulgarian labor laws.
   • Regulatory Adherence: They handle compliance with local employment regulations, including taxes and social security contributions.
2. Payroll Management:
   • Salary Processing: They manage payroll, ensuring employees are paid accurately and on time.
   • Tax Withholding: They handle deductions for income tax and social security.
3. Benefits Administration:
   • Healthcare and Benefits: Administration of statutory benefits, such as health insurance, and any additional benefits as required by Bulgarian law.
4. Recruitment and Onboarding:
   • Hiring: Assisting in the recruitment and onboarding process, including necessary legal documentation.
   • Orientation: Ensuring new hires are properly integrated and compliant with company policies and local regulations.
5. Risk Mitigation:
   • Legal Risk: Reducing the risk of non-compliance with local labor laws and regulations.
   • Employment Disputes: Handling any potential employment disputes or issues in accordance with Bulgarian labor laws.
6. Local Expertise:
   • Market Knowledge: Providing insights and guidance on local employment practices and market conditions.
   • Support: Offering support in navigating the Bulgarian employment landscape.

How It Works

1. Partnership: Your company partners with Brain Source International to handle all employment-related administrative tasks in Bulgaria.
2. Employment: Brain Source International becomes the legal employer of record for the employees, managing contracts, payroll, and compliance.
3. Operations: Your company oversees the employees’ day-to-day tasks and responsibilities, while Brain Source International takes care of the administrative and legal aspects.

Advantages

• Quick Market Entry: Allows companies to quickly hire and operate in Bulgaria without the need to establish a local entity.
• Compliance: Ensures adherence to local employment laws and regulations, reducing legal risks.
• Focus on Core Business: Enables companies to focus on their core activities while outsourcing employment administration tasks.

Using Brain Source International as an EOR in Bulgaria can streamline the hiring process, ensure legal compliance, and provide valuable local expertise, making it easier for companies to manage employees and operations in the region.