Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Bulgarian lev (лв., BGN)

Payroll Frequency

$$ (91 of 139 nations)

Public Holidays

13 days

Employer Taxes


Cost of Living Index

$$ (91 of 139 nations)

Statutory Leave

4 weeks

Sick Leave

3 days

Maternity Leave

58 weeks

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

From January 2021, the minimum working salary and monthly social security income were increased from BGN 610 to BGN 650. The maximum monthly social security income remains at BGN 3,000 per month.

Overtime Pay

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Additional Pay

There is no additional payment detail for Bulgaria.

Payroll Cycle

Salaries in Bulgaria are paid mid-month for the previous month. For example, salaries for November are paid in mid-December.

Employer Costs & Taxes

  • 0.92% - State Social Insurance contributions (disability, disease, maternity, old age pension)
  • 2.80% - Supplementary Compulsory Pension Insurance
  • 4.80% - Healthcare contributions (mandatory medical insurance)
  • 0.4-1.1% - Accident at Work and Occupational Diseases Fund
  • The contributions to the State Insurance System are based on the gross salary of the employee, but the total is limited to a monthly maximum of BGN 3,000 as of 2020.

Employee Costs & Taxes

  • 8.38% - State Social Insurance contributions (disability, disease, maternity, old age pension)
  • 2.20% - Supplementary Compulsory Pension Insurance
  • 3.20% - Healthcare contributions (mandatory medical insurance)
  • 10% flat rate (personal income tax is taken from the gross salary minus all contributions)

Employment Information

Termination Process

In Bulgaria, there are various laws that both employers and employees must follow in the event of a termination. For example, if the parties mutually agree to terminate the employment contract, it is easily handled by communicating it in writing. If the employee is a member of a union, the employer must obtain permission from the union before terminating the employee.

Because there are so many specific types of terminations specifically outlined in the labor code and other employment laws, employers face significant complexity managing any form of termination.

Possible reasons for terminations include:

  • Closing the enterprise in which the individual works, or reducing the number of working positions in a portion of the enterprise
  • Workload reduction
  • Work stoppage by the employing enterprise for more than 15 business days
  • Employee's inability to perform his or her labor duties effectively
  • insufficient professional qualifications or educational background required for effective performance of labor duties
  • Refusal of the employee to relocate to a new location with the company for which the employee works
  • change in the requirements for performing the labor duties inherent in the position, provided that if the employee fails to meet these requirements
  • The employee has become entitled to retire on old age pension; or upon attainment of the age of 65 in the case of professors, associate professors, or persons holding a doctoral degree (with some exceptions)
  • If the employee has been granted a pension for contributory service and a reduced retirement age under the Social Insurance Code
  • If the employment relationship began after the employee obtained and used his right to an old-age pension
  • if the employment relationship began after the employee was granted a reduced contributory service and retirement age pension under the Social Insurance Code
  • objective impossibility of the employee's performance
  • if the position must be vacated to accommodate an employee who was reinstated after being wrongfully dismissed
  • execution of a management assignment agreement with the employing entity's registered directors (in the latter case an employer is entitled to terminate employment agreements only with managerial personnel; this right lapses upon the expiry of nine months from the commencement of the agreement for assignment of management)

Notice period

In Bulgaria, the standard notice period is 30 days. However, in some cases, the employer and employee can agree to a longer period (up to 90 days).

Probation Period

Probation periods in Bulgaria cannot exceed 6 months.

Severance Details

There is no statutory severance pay unless the following conditions are met:

  • Termination of employment due to illness: In this case, an employee with at least 5 years of service must be paid 2 months' gross remuneration as severance.
  • Termination after the employee becomes pensionable: In this case, two months' pay as severance (or) six months' pay for a job tenure of more than ten years.
  • Termination due to downsizing or the company's closure: One month's severance pay is required.

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

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