Payroll and benefits guide
Bulgaria
CapitalSofia
Fiscal Year1 January - 31 December
Date Formatdd/mm/yyyy
CurrencyEUR (Euro)
Payroll FrequencyMonthly
Employer Taxes18.92% – 19.62%
Employee Costs13.78%
Overview
- Languages
- Bulgarian
- Income tax
- 10%
- VAT
- 20%
- Reduced rates: 9%. The reduced rate applies mainly to hotel accommodation
Contributions
Employer
14.12% – 14.82%
Social security (pension, sickness, maternity, unemployment, work accident)Work accident rate of 0.4%–1.1% depends on the activity; capped at the maximum insurable income of EUR 2,300/month (from 1 August 2026)
4.8%
Health insuranceSame monthly cap
18.92% – 19.62%
Total employer cost
Employee
10.58%
Social security (including supplementary pension fund)Capped at the maximum insurable income
3.2%
Health insuranceCapped at the maximum insurable income
13.78%
Total employee cost
Minimum Wage & Working Hours
- Minimum wage
- EUR 620.20 / Monthly
- Effective 1 January 2026; Bulgaria adopted the euro on the same date
- Standard working hours
- 40 hours per week, 8 hours per day
- Overtime
- Premiums of at least 50% on workdays, 75% on weekends, and 100% on public holidays; capped at 150 hours per year
Leave
- Annual leave20 working daysSome roles and collective agreements grant more
- Sick leaveFor the length of certified illnessEmployer pays 70% of salary for the first 3 working days; the National Social Security Institute pays from day 4
- Maternity leave410 daysStarts 45 days before birth; paid by the National Social Security Institute at 90% of average insurable income
- Paternity leave15 calendar daysPaid by the National Social Security Institute at 90% of average insurable income
Termination
- Probation period
- Up to 6 months
- Notice period
- 30 days for permanent contracts, unless the contract sets a longer period of up to 3 months
- Severance pay
- 1 month of gross salary for redundancy or closure; other compensation applies for illness or retirement
- 13th salary
- Not mandatory
Benefits
- Seniority bonusMandatory
Extra pay of at least 0.6% of base salary for each year of service
- Food vouchersCommon
Tax-advantaged meal benefit
- Private health insuranceCommon
Supplementary cover, common in tech and services
Visas & Work Permits
Single permit for residence and work
- Requirements
- Job offer and labor market approval from the Employment Agency
For non-EU workers
EU Blue Card
- Requirements
- Higher education and a job offer meeting the salary threshold
For highly qualified non-EU workers
FAQ
Sources
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