Hiring in Bulgaria: Complete Guide 2027
Everything you need to know about hiring and managing employees in Bulgaria
Overview
Bulgaria is the cheapest EU payroll for a senior hire. The employer pays 18.92% to 19.62% of gross, but only up to the insurable-income cap of EUR 2,300 a month from August 2026; above it, the sole charge is the 10% flat income tax. The employee pays 13.78% plus the same 10%. The lev gave way to the euro on 1 January 2026 at 1.95583; the minimum wage is EUR 620.20. A provider that employs your hire and places them with you is a temporary-work agency under the Labour Code and needs an Employment Agency registration. An EOR fee of $400 to 650 a month often weighs more than the contributions.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Bulgaria
Bulgarian payroll runs monthly. The employer registers with the National Revenue Agency (NRA) and notifies every contract under article 62 of the Labour Code within 3 days before the start date; monthly declarations 1 and 6 carry contributions and withheld tax. Employer contributions in 2026 total 18.92% to 19.62% of gross: pension 8.22%, supplementary pension 2.8%, sickness and maternity 2.1%, unemployment 0.6%, accident at work 0.4% to 1.1% by activity, health insurance 4.8%. The employee pays 13.78% and 10% income tax on what is left. Contributions stop at the insurable-income cap: EUR 2,111.64 a month from January to July 2026 and EUR 2,300 from 1 August 2026; the pension rate rises one point in 2027. The minimum wage under Decree 243 of 13 November 2025 is EUR 620.20 a month, EUR 3.74 an hour. An EOR files the article 62 notification and the monthly declarations, pays the NRA and issues the payslip in euro.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract notified to the NRA within 3 days before the start
- Probation up to 6 months
- 40-hour week, paid monthly in euro
Leave & Time Off
- 20 working days minimum annual leave
- Sick pay: employer 70% for the first 2 days, then the NSSI
- Maternity 410 days at 90% from the NSSI
Termination Rules
- 30-day notice, up to 3 months by contract
- Dismissal only on the Labour Code's listed grounds
- One month's gross salary severance for redundancy or closure
COMPLIANCE
Agency Registration and Dismissal Grounds in Bulgaria
An EOR that employs staff and assigns them to a client is a temporary-work agency under the Employment Promotion Act and the Labour Code's chapter on temporary agency work. The agency must be registered with the Employment Agency and lodge a guarantee; the registration number is public and a provider should give it on request. Termination follows the Labour Code's closed list of grounds: redundancy, closure, lack of qualities for the job, disciplinary dismissal. Notice on an indefinite contract is 30 days, up to 3 months if the contract says so, the same for both sides. Redundancy and closure carry one month's gross salary in severance, more under a collective agreement, plus pay for unused leave.
Key Challenges
- An EOR that places staff with a client is a temporary-work agency and must be registered with the Employment Agency
- Every contract notified to the NRA within 3 days before the start date
- Dismissal only on the grounds the Labour Code lists, with one month's severance for redundancy
- The insurable-income cap moved to EUR 2,300 in August 2026 and the pension rate rises a point in 2027
- Non-EU hires go through the Employment Agency for an EU Blue Card or a single permit
Country Highlights
Advantages
- 10% flat income tax, withheld monthly
- Employer on-cost of 19–20%, and nothing above the EUR 2,300 cap except the flat tax
- The euro since 1 January 2026 at 1.95583 lev, no FX line on the payslip
- Sofia's software firms and shared-service centres hire in English every day
- 30-day notice and a 6-month probation keep exits short
Popular Industries & Roles
Technology
Avg. Salary: €30k-€60k
Sofia's software firms and outsourced development centres pay the highest wages in the country and recruit in English
Business Services
Avg. Salary: €18k-€35k
Sofia and Plovdiv run shared-service and customer-support centres for Western European groups, multilingual by default
Engineering & Manufacturing
Avg. Salary: €22k-€40k
Automotive parts and electronics plants around Plovdiv's Trakia Economic Zone keep a steady demand for engineers
Top 3 Providers in Bulgaria
Based on our analysis of pricing, compliance record, service quality, and customer reviews
MGSD Pro
- Bulgaria EOR + outsourced teams
- Marketing-as-a-Service bundle
- UK SME nearshoring specialist
- 40% cost reduction claimed
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Remote
- 100% owned entity model globally
- Compliance-first with IP protection
- Strong contractor management at $29/month
- Ranked #1 for compliance on G2
Frequently asked questions
Hiring in Bulgaria through an EOR, in short.
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How much does an employer pay on top of salary in Bulgaria?
Employer contributions in Bulgaria come to ≈19–19.6%; the largest mandatory line is Pension 8.22%. With the other statutory benefits and a typical EOR fee, budget ~30–45% on top of gross salary.
What does an EOR charge per employee in Bulgaria?
Published EOR fees in Bulgaria run $400–650/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Bulgaria pay in tax and contributions?
Income tax is 10% flat and employee social contributions are 13.78% (6.58% pension), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Bulgaria?
3-7 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Bulgaria?
MGSD Pro, Deel and Remote hold the first three places in our ranking for hiring in Bulgaria. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Bulgaria.
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