HR Software for Bulgaria

Leave Policy

Maternity Leave

Pregnant employees who have worked continuously for 12 months are entitled to 410 days of paid leave. The employee must claim 45 days before the birth of the child and 45 days after the birth. The remaining days can be taken by the employee at her own discretion until the child is two years old.

The employee receives different compensation during this period depending on when the vacation was taken. The National Insurance Institute is responsible for the payment and pays it directly to the employee.

Period (Child’s Age)	Pay	Payer
0 – 1 year	90% of salary	National Insurance Institute
1 – 2 years	BGN 380,00 per month	National Insurance Institute

Paternity Leave

Employees who have worked for 12 months are entitled to 15 days of paid paternity leave. During this period, the employee receives 90% of his salary paid directly by the Social Security Institute.

The employee can extend the vacation for another 6 months, which are unpaid.

Parental Leave

In Bulgaria, parental leave is not regulated by law. However, employees may be entitled to maternity and paternity leave. Employees can extend their vacation by:

Transfer of maternity leave, including cash benefits, to the partner after six months of leave.
Applying for child-rearing benefits covered by the state insurance company.

Sick Leave

In Bulgaria, continued payment of wages in the event of illness is determined and paid in two ways:

The employer pays approximately 70% of salary for the first three days of sick leave
From the 4th consecutive day of illness, sick leave is paid by the state (NSSI National Social Security Institute). The compensation for these days is 80% of the average daily income for the last 18 months.

Employees are entitled to paid sick leave for up to 180 days. Sick leave can be extended beyond 180 days if the employee is assessed by a special medical commission (ТЕЛК).

Pay & Tax

Minimum Wage Requirements

The minimum wage in Bulgaria is 933 BGN.

Individual Income Tax

The individual income tax is a flat rate of 10%.

Note: Apart from this income tax, employees must contribute 13.78% to social security.

Payroll Cost

The cost to the employer is generally estimated at 19% of the employee’s salary.

Health insurance – 4.80%*
Fund for industrial accidents and occupational diseases – 0.50%*
Joint health and maternity insurance fund – 2.10%*
Unemployment fund – 0.60%*
Pension funds in the NSSI – 8.22%*
Mandatory additional pension insurance in the general pension fund – 2.80%*
Medical examination and health & safety – BGN 5

*The maximum salary for calculating the contribution is BGN 3,750.

One-time fees

Courier costs for delivery of the EA – BGN 20
Mandatory Wet Ink Employment Contract Processing Fee – USD 80

Annual Fees

Risk assessment – BGN 35
Occupational safety company insurance – BGN 25

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Terminations in Bulgaria can be complex. There is no termination at will and it is not possible to terminate a contract without cause.

Compliant terminations are:

Voluntary by the employee
By mutual agreement
Unilaterally by the employer due to:
1. Probation period
2. Dismissal for disciplinary reasons
3. Closing of operations
4. Reduction of work.
When the contract expires

Vacation not taken must be paid out upon termination, as well as unpaid commissions or bonuses.

Notice Period

The notice period is at least 30 days for both parties and can be extended up to 90 days.

Severance for Employees

In Bulgaria, employees are entitled to severance pay. The amount of the severance payment depends on the reasons for which the contract is terminated:

The employer closes the company or reduces the number of employees: a one-month severance payment must be paid.
The employer terminates the employment relationship for health reasons or because of a risk to the employee’s health if the employee has worked for at least five years: two monthly severance payments are to be paid.
The employee has reached retirement age:
1. Length of employment of less than 10 years: three months severance pay
2. Length of employment of 10 or more years: six months severance pay
The contract is terminated by mutual agreement at the employer’s initiative against payment of severance pay: at least four months’ severance pay must be paid.
The employer terminates the contract without observing the notice period: three months’ severance pay.

To protect you from unforeseen financial risks associated with dismissals, IceHrm applies a severance pay provision in all employment contracts in this country. IceHrm has extensive expertise in managing litigation risk globally and our severance provision calculation is based on applicable common law or statutory requirements and best local practices. If your employee resigns or is not entitled to severance pay, you will receive a refund of any unused amounts.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 20 days of paid time off per year. PTO is calculated monthly at 1.67 days per month.

If a part-time employee works less than four hours per day, PTO is calculated pro rata to the hours worked.

Public Holidays

There are 13 public holidays celebrated in Bulgaria every year. This includes:

New Year celebration
Bulgarian Liberation Day
Good Friday
Labor Day
Orthodox Easter
Orthodox Easter Monday
Đurđevdan
Day of the Slavic Alphabet, Bulgarian Enlightenment and Culture
Reunification Day
Independence Day
Eastern Orthodox Christmas Eve
Orthodox Christmas Day
2nd day of Christmas

Onboarding

Employees cannot sign the contract on the day they start work.
The training lasts 7 working days after signing the employment contract.
Copies of the signed employment contract and NRA registration must be made in wet ink.
The employee must be registered with social security within 3 days of signing the employment contract.

Additional Info

Employment Contract Details

The contracts must be drawn up in Bulgarian and may be bilingual. They must be in writing and signed by both parties. A contract must contain the following:

Name and PIN of the employee
Basic monthly salary
Date of signing
Start date
Probation period
Notice period Job: Name and national job code
Working hours
Workplace

Probation Period

Probationary periods are not mandatory. The minimum probation period is 30 days. The maximum duration of the probationary period is 180 days (6 months).