Employment in Bulgaria is governed by the Labour Code and the Social Insurance Code. Bulgaria adopted the euro on 1 January 2026, so wages, contributions and benefits are now set in EUR. Here is what employers need to know about leave, pay, tax and ending employment.
The Labour Code sets minimum paid leave for all employees. Longer periods for sickness and family leave are paid as benefits by the National Social Security Institute (NSSI), not by the employer.
20 working days a year as a minimum. Contracts, collective agreements and some jobs give more. Unused leave is paid out when employment ends.
The employer pays 70% of average daily gross pay for the first 3 working days. From day 4 the NSSI pays a benefit of 80% of average insured income.
45 days of which must be taken before the birth. Paid by the NSSI at 90% of average insured income, for mothers with at least 12 months of insurance.
Paid by the NSSI at 90% of average insured income, plus a separate 2 months of father’s leave (below).
After maternity leave ends, either parent can take leave to raise the child until they turn 2. In 2026 the NSSI pays a fixed benefit of about EUR 398 a month for this second year; the amount was not increased in the 2026 social security budget. With the mother’s consent, the father can take over the rest of the 410 days once the child is 6 months old. Fathers also have a non-transferable right to 2 months of paid leave, usable in one or more blocks until the child is 8, with 10 days’ written notice to the employer.
Set up each Bulgarian leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata entitlements for new joiners and part-time staff. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The national minimum wage is set by the Council of Ministers, usually from 1 January each year. Collective agreements can set higher rates for some sectors.
From 1 January 2026 for full-time work, or EUR 3.74 per hour.
Normally 8 hours a day over a 5-day week. Shorter hours apply to some roles and to employees under 18.
Overtime is only allowed in the cases listed in the Labour Code, within daily, weekly and annual caps.
| Overtime worked on | Premium |
|---|---|
| Working days | 50% |
| Weekly rest days | 75% |
| Public holidays | 100% |
| Summed working time | 50% |
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so weekday, rest day and holiday premiums reflect what was actually worked. Time & attendance →
Bulgaria taxes personal income at a flat rate of 10%, one of the lowest in the EU. For employment income, tax is charged on gross pay after deducting the employee’s mandatory social security and health contributions.
| Taxable employment income | Rate |
|---|---|
| All income (no tax-free allowance) | 10% |
Employers withhold tax from each monthly payment and pay it, together with social security contributions, to the National Revenue Agency (NRA). Employees with only employment income from one employer usually don’t need to file an annual return; others file by 30 April of the following year.
Social security and health contributions are shared between employer and employee and are calculated on gross pay, between a minimum insurable income for the job and a monthly maximum.
Social security plus health insurance. The range comes from the work accident rate, which depends on the economic activity.
Withheld from gross pay by the employer, before income tax is calculated.
Per month from 1 August 2026 (EUR 2,111.64 until 31 July 2026). No contributions are due on pay above this.
| Contribution | Employer | Employee |
|---|---|---|
| State pension fund | 8.22% | 6.58% |
| Universal (second pillar) pension fund | 2.80% | 2.20% |
| General illness and maternity | 2.10% | 1.40% |
| Unemployment | 0.60% | 0.40% |
| Work accidents and occupational disease | 0.4–1.1% | – |
| Health insurance | 4.80% | 3.20% |
| Total | 18.92–19.62% | 13.78% |
Build Bulgarian pay the way you already structure it, with your own salary components, deductions and formula columns, such as a social security column capped at the maximum insurable income. Want to know how well IceHrm handles payroll calculations for Bulgaria? Contact us or see Payroll →
Employment in Bulgaria is not “at will”. An employer can only dismiss on the grounds listed in the Labour Code, and some employees, such as pregnant women and people on maternity leave, have extra protection.
| Type of contract | Notice |
|---|---|
| Indefinite contract | 30 days, or up to 3 months if agreed |
| Fixed-term contract (where notice applies) | 3 months, but no longer than the remaining term |
| Reason for termination | Severance |
|---|---|
| Closure, staff reduction, reduced workload or work stoppage (while the employee is unemployed) | Up to 1 month |
| Health reasons, with at least 5 years of service | 2 months |
| Retirement | 2 months |
| Retirement, with 10 years at the same employer in the last 20 years | 6 months |
| Mutual agreement proposed by the employer | At least 4 months |
Final pay includes compensation for any unused paid annual leave. The employer must also notify the NRA of the termination within 7 days.
The Labour Code lists Bulgaria’s official public holidays. Easter follows the Orthodox calendar, and when a holiday falls on a weekend the next working day is usually a day off.
Bulgaria celebrates Christmas on 24–26 December. 1 November, the Day of the National Revival Leaders, is a day off for schools and universities only. Work on a public holiday is paid at double the usual rate.
Leave groups give each office its own holiday calendar, so your Sofia team gets Bulgarian holidays, including the moving Orthodox Easter dates, while staff in other countries get theirs. Holiday calendars →
An employment contract must be in writing and signed by both parties. Contracts are indefinite by default; fixed-term contracts are only allowed in the cases the Labour Code permits.
A probation clause is optional and can last up to 6 months. During probation, the party it benefits can end the contract without notice. Fixed-term contracts can generally last up to 3 years, and a new fixed-term contract for the same kind of work is only allowed in limited cases.
Send contracts and job descriptions for e-signing, store them on the employee’s record, and track onboarding with task lists so the NRA notification is never missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Bulgaria, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Bulgaria? Talk to us.
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